Court Blocks East Africa's First Billionaire From Recovering 2.2 Million From Dfcu

The Ugandan High Court blocked Sudhir Ruparelia's attempt to recover 2.2 million from dfcu bank in a long-running rent dispute.

Justice Mubiru issued a stay on the garnishee order, halting the seizure of funds from dfcu Banks Bank of Uganda account.

Ruparelia strengthens his market position, acquiring Lotis Towers from dfcu bank in May 2024, expanding his real estate empire.

A recent ruling by the Ugandan High Court has dealt a setback to Sudhir Ruparelia, Ugandas richest man and East Africas first billionaire. The court blocked his attempt to recover 2.2 million from dfcu bank in a long-running rent dispute. This marks a twist in the ongoing legal battle between Ruparelias Crane Management Services and the commercial bank.

Justice Steven Mubiru, presiding over the Commercial Division, issued an order staying the execution of a garnishee order for Ush8.069 billion 2.2 million in favor of Crane Management Services, the property management arm of Ruparelias Meera Investments Ltd.

The garnishee order sought to seize funds from dfcus account at the Bank of Uganda to recover unpaid rent and damages stemming from a tenancy dispute. However, Justice Mubiru noted that enforcing the order could disrupt dfcu banks operations, prompting a temporary halt in the execution.

The dispute dates back to 2013, when Crane Management signed a five-year lease agreement with dfcu bank for one of Meera Investments properties. However, after the controversial closure of Crane Bank and the transfer of its assets to dfcu, the bank allegedly fell behind on its rent payments. In response, Crane Management took legal action to recover the unpaid rent, which included Ush2.998 billion 811,000 and 385,728 in damages.

In 2024, the High Court ruled in favor of Crane Management, ordering dfcu bank to pay the outstanding balance, which included Ush400 million 109,000 in damages and 10 percent interest. The total amount exceeded Ush8 billion 2.2 million.