On October 30, 2024, Dr. Sudhir Ruparelia, Ugandan businessman and Chairman of the Ruparelia Group, achieved a legal win in a UK court against dfcu Bank concerning the contested acquisition of Crane Bank.
The court, led by Mr. Justice Stephen Hofmeyr KC, dismissed dfcu Bank’s request for Dr. Ruparelia and former Crane Bank associates to provide security for legal costs, allowing their substantial compensation claims to proceed unhindered.
The lawsuit, filed by Crane Bank shareholders, demands over $200 million in damages and accuses former Bank of Uganda officials and dfcu Bank executives of orchestrating a fraudulent scheme to seize Crane Bank at an undervalued price.
It alleges that this plot unfairly benefited individuals involved in the sale, following Crane Bank’s 2016 takeover.
Justice Hofmeyr’s decision to deny security for costs follows an earlier ruling from the UK Court of Appeal, which had greenlit Crane Bank’s claims despite the “foreign act of state doctrine.”
This doctrine typically limits English courts from addressing cases involving foreign government actions.
However, the court found an exception, asserting that Crane Bank’s allegations fell within commercial activity and involved significant issues of public policy, specifically regarding corruption and bribery.
This ruling has reinvigorated Crane Bank shareholders, who are determined to seek justice in what they describe as an unfair and undervalued sale of one of Uganda’s former largest banks.
Their representatives have affirmed that they “will continue to vigorously pursue their claim as part of a fair legal process before the English courts.”
The decision not only advances their pursuit of restitution but also underscores the UK judiciary’s commitment to confronting alleged corruption on an international scale.
