Court blocks East Africa’s first billionaire from recovering $2.2 million from dfcu

Key Points

• 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 Bank’s 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, Uganda’s richest man and East Africa’s 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 Ruparelia’s 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 Ruparelia’s Meera Investments Ltd.

The garnishee order sought to seize funds from dfcu’s 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 bank’s operations, prompting a temporary halt in the execution.

Dispute dates back to 2013 lease

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).

However, the bank appealed the decision, asking for a stay of execution. They argued that enforcing the order prematurely could affect the appeal process. Justice Mubiru acknowledged the validity of the bank’s appeal, recognizing the potential legal and financial consequences for both parties. As a result, the case is now in the hands of the Court of Appeal, which will determine the final outcome.

Ruparelia strengthens hold on Uganda’s market

Ruparelia, a self-made billionaire with a net worth of over $1.1 billion in 2014, has long been a prominent figure in Uganda’s business and real estate sectors. Through his Ruparelia Group, he has built a diverse portfolio, including hotels, country clubs, real estate, education, and broadcasting. His company, Meera Investments, owns and manages more than 200 commercial properties, cementing his influence on Uganda’s real estate market.

In May 2024, Ruparelia made a move to expand his empire. He acquired Lotis Towers, a 14-story office building in Kampala, from dfcu bank following a bank auction. The building, located on MacKinnon Road, was renamed Arie Towers, enhancing his property holdings and reinforcing his position as a leading force in Uganda’s commercial property market.