Ugandan businessman Dr. Sudhir Ruparelia has opened a major legal battle in London, seeking more than £300 million (over Shs1.4 trillion) in damages over the controversial collapse and takeover of Crane Bank.
The case has opened before the London High Court, with Ruparelia and Crane Bank facing off against several companies and individuals linked to the bank’s takeover, including Norwegian firm Norfinance, Arise and other shareholders of DFCU.
The trial is expected to continue for several months as the parties present their respective cases.
Crane Bank, founded and principally owned by the Ruparelia family, was placed under Bank of Uganda administration in 2016 before its banking operations were later transferred to DFCU.
By 2015, Crane Bank had expanded to 46 branches across Uganda, with operations in Rwanda and more than 600,000 customers.
Ruparelia’s legal team alleges that Crane Bank was deliberately weakened as part of a broader scheme associated with attempts by Chinese conglomerate CEFC China Energy to acquire control of a Ugandan bank.
The plaintiffs claim that capital requirements, loan assessments and investigations were among the measures allegedly used to undermine the bank ahead of its takeover.
The proceedings also refer to a US corruption case involving Chi Ping Patrick Ho, a former executive of CEFC China Energy. Ho was convicted of bribery in 2018 and sentenced to prison in 2019.
The alleged bribery was linked to efforts involving a Ugandan government official.
DFCU later took over Crane Bank’s operations. According to the plaintiffs, the transaction was concluded at an excessively low value and should have prompted serious concerns.
Norfinance is majority-owned by Norfund, the Norwegian government’s development investment fund. Norfund has stated that it is not a defendant in the case, while Norfinance and Arise have rejected the allegations and indicated that they will defend themselves in court.
For Ruparelia, the proceedings are not solely about securing financial compensation. He has argued that the case is also intended to ensure that institutions involved in the Crane Bank saga think carefully before taking similar actions in the future.
The allegations will ultimately be tested in court, with the London High Court expected to determine the merits of the competing claims based on the evidence presented by the parties.