One of the bitterest episodes in tycoon Sudhir Ruparelia’s storied business life is the way he lost Crane Bank Limited to DFCU in January 2017. Bank of Uganda determined that Crane Bank was undercapitalized, opening the way for DFCU to take it over at a cost of Shs 200 billion.
Crane Bank was the crown jewel of Sudhir’s sprawling business empire. Little wonder the businessman put up a big fight to try to rescue his bank.
First, Sudhir took Bank of Uganda to court, contesting the manner in which the bank was sold. The Supreme Court agreed with him giving him a major victory.
Secondly, at the tycoon’s instigation, Parliament instituted a special probe into the sale of commercial banks by the central bank. In the end, Parliament faulted Bank of Uganda for flouting several rules in the sale of various banks including Crane Bank.
The lawyers that fight DFCU Bank’s legal battles
Thirdly, he took on DFCU Bank directly and stopped the bank from using the former branches/premises of Crane Bank to conduct their business.
In 2023, Meera Investments Ltd, the property arm of the Ruparelia Group slapped DFCU with a rent bill of $8.6 million (Shs 32 billion), a decision that led the bank to vacate the premises without delay.
Lastly, some of the tycoon’s acolytes in the media (with a little encouragement) engaged in a smear campaign against DFCU, occasionally highlighting its financial struggles.
While Sudhir eventually defeated Bank of Uganda in court, the possibility of reviving his bank is very slim.
But this has not stopped Sudhir from owning a local bank or a piece of it, not outrightly.
His bank of choice? DFCU.
According to DFCU’s annual report for the year ending December 31, 2024, Sudhir is the largest individual shareholder in the financial institution. Sudhir owns 0.29% stake in the bank, or 2.165.757 shares. No other individual owns a stake as big as this in DFCU. Keith Muhakanizi, the late former secretary to the treasury has 0.20%.
Late Keith Muhakanizi owns a chunk of DFCU
When the bank distributes dividends to its shareholders later this year (at Shs 20.1 per share), Sudhir will earn at least Shs 43 million.
Well, that is loose pocket change for the tycoon, but it gives him some satisfaction that his nemesis can at least put some money, however little, in his pockets.
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