DFCU drops Sebalu and Lule advocates from Meera Investments case

DFCU Bank has dropped law firm Sebalu and Lule Advocates from representing them in the case in which the bank is accused of illegally occupying properties that belong to Meera Investments Limited.

The bank has instead chosen Kalenge, Bwanika, Ssawa & Co. Advocate to represent them in the suit.

“We have been instructed by DFCU to represent it in the above proceedings in place of Sebalu and Lule advocates. We request that all further correspondences and or court process in connection thereto be forwarded to us,” read part of a notice by Kalenge, Bwanika, Sawa and Co. Advocates.

The notice was received by court on November 20.

Origin of the court case

When it took over Crane bank in 2017, DFCU Bank received some of the assets and liabilities of Crane Bank and started to operate in different branches whose ownership belonged to Meera Investments Ltd.

MIL is part of the Ruparelia Group owned by Sudhir Ruparelia.

However Meera Investments Limited in a suit argued that the buildings belonged to it not Crane Bank.

It argued that between 2012 and 2016, it leased the 46 properties to Crane Bank on different terms with the leases being duly registered as encumbrances on Meera’s freehold and mailo interest.

The lease titles were subsequently processed and issued to Crane Bank.

Crane Bank agreed to pay US$6,000 as ground rent for each of the properties effective on or before the January 1, of every year to the property owners (Meera Investments).

The lease agreements, court documents show, provided that Meera had the option to review the ground rent after the expiry of three years.

On January 24, 2017 Bank of Uganda announced that it had transferred all the assets and liabilities of the bank to dfcu Bank.

But lawyers said this was an illegality because the consent of the owner, MIL, was not sought.