Sudhir Ruparelia, a city businessman, who owns real estate company Meera Investments, has filed a case in the Commercial Court, demanding that dfcu Bank pay over UGX 32 billion in rent arrears.
Meera Investments claims that dfcu Bank violated the tenancy agreement for plots 38 and 40A Kampala Road, which were previously occupied by the defunct Crane Bank that dfcu took over. As the successor in title to Crane Bank, dfcu inherited all tenancy agreements and obligations, including those related to the suit properties.
The case is based on a 10-year tenancy agreement signed on December 16, 2014, in which Meera Investments leased out the basement, ground, 1st, 2nd, 3rd, and 7th floor of Plot 38 Kampala Road and all of Plot 40A Kampala Road to Crane Bank.
Sudhir contends that dfcu breached the agreement by relinquishing the 1st, 2nd, 3rd, and 7th floors of Plot 38 Kampala road as well as the entire Plot 40A before the expiry of the 10 years without renegotiating with Meera.
According to Meera, dfcu breached the tenancy agreement and is seeking to recover rent arrears for the unexpired period of over 80 months amounting to $8,660,462(UGX 32 billion).
Meera is demanding that dfcu pay the rent owed as a tenant in the premises and being the transferee of the assets and liabilities. In addition, Meera is seeking interest on the sum at the prevailing commercial rate, general damages, and all costs of the suit arising from the alleged breaches committed by dfcu Bank.
It is important to note that in 2020, dfcu Bank relocated 15 of its branches, including Cranes Chambers, Arua, and Entebbe centers, among others, from Meera Investment Properties. The move came after dfcu Bank had initially downplayed the development in 2019 and had asked Bank of Uganda to take back titles for the 48 properties belonging to Meera Investments.
Governor Emmanuel Tumusiime Mutebile in the 2018/2019 annual report confirmed that dfcu Bank had indicated to the central bank that they would exit the properties in the wake of legal suits, where Sudhir had repeatedly defeated both the central bank and those conjoined in the decided court cases.
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