The Ministry of Lands has canceled dfcu Bank's leases on the collapsed Crane Bank's 48 properties and ordered that they be turned over to Meera Investments Limited.
Baker Mugaino, writing on behalf of the land registration commissioner, directed DFCU Bank to surrender the properties within seven days of the letter's date (November 8).
He indicated in the letter to DFCU that he had revoked the title leases in accordance with the court order given in October.
The High Court Land Division ordered DFCU Bank to remove the 48 leasehold properties belonging to the collapsed Crane Bank in a verdict made on October 24, 2023. Justice Tadeo Asiimwe further ordered the Commissioner of Land Registration to revoke 48 suit leases, lease amendments, and extensions filed as encumbrances on Crane Bank Limited's mailo and freehold titles.
Mugaino said that, in accordance with the court judgment, he revoked all title certificates, and that DFCU Bank must restore them to the owner.
"You will recall that a judgment was entered in favor of the plaintiff, Meera Investments Limited, against DFCU Bank Limited and the Office of the Commissioner Land Registration in the above-mentioned suit." Orders were issued ordering the office to correct the record in compliance with the decree's conditions, including the revocation of leasehold certificates of title. "For your convenience, a copy of the decree is enclosed," he wrote.
"Given the self-executing nature of the Court's orders and to avoid possible contempt proceedings, this office proceeded and implemented the Court's decree to the extent of the orders made for its implementation by rectifying the register and canceling the leases as encumbrances on the Mailo and Freehold certificates of title registered in the names of Meera Investments Limited, and further by canceling all entries on the register and white pamphlets."
The objective of this letter is thus to request that, since the leasehold titles have been canceled, the 48 duplicate certificates of title in your possession be returned to our office to prevent any potential abuse. Please respond within seven days after receiving this mail," he said.
The court also ordered DFCU Bank to pay former Crane Bank Shs2.4 billion in damages plus 8% interest per year for trespassing on the bank's premises.
The plaintiff filed this lawsuit against the defendants, DFCU Bank and the Commissioner of Land Registration, for allegedly unlawful and fraudulent sale and ownership of 48 leasehold properties. Mera Investments' claims were based on its standing as the registered owner and lessor of 48 Mailo and freehold titles, from which the disputed lease agreements arose.
The conflict revolved over ownership of these properties, as well as the subsequent transfer of titles and lease occupancy in favor of DFCU Bank. DFCU Bank, on the other hand, denied these charges, claiming that they had obtained their stake in the 48 leasehold properties legitimately via a purchase from the Bank of Uganda as a receiver of Crane Bank Limited.
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