By AGGREY BULUBA
Kampala — In a significant legal victory, Ugandan businessman and Chairman of the Ruparelia Group, Sudhir Ruparelia, successfully defended against a claim by dfcu Bank in a UK court on October 30, 2024. Mr. Justice Stephen Hofmeyr KC dismissed dfcu Bank’s request for Ruparelia and his associates from Crane Bank to pay security for costs, allowing Ruparelia and Crane Bank’s claims for over $200 million in damages to proceed.
The case, initiated by Crane Bank and its shareholders, alleges that dfcu Bank executives and former Bank of Uganda officials participated in a fraudulent scheme. The lawsuit claims these officials conspired to take over Crane Bank and later sold it at a drastically undervalued price, benefiting key figures involved in the transaction. Mr. Justice Hofmeyr’s decision to reject the security request underscores that the case merits a full hearing in court.
This follows a previous UK Court of Appeal decision allowing Crane Bank’s claims to proceed despite the “foreign act of state doctrine,” which generally restricts English courts from handling cases involving foreign government actions. The court found the allegations met an exception, involving commercial activity and serious issues such as corruption and bribery.
In a statement, Crane Bank shareholders said: “Crane Bank and its shareholders will continue to vigorously pursue their claim as part of a fair legal process before the English courts.”
This latest ruling strengthens Crane Bank’s ongoing legal battle over its controversial 2016 sale to dfcu Bank, underscoring the UK’s commitment to addressing corruption and upholding fair legal processes.
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