By Musisi Lwanga
The long-running legal battle over the takeover of Crane Bank has entered a critical stage in London, with former shareholders, led by businessman Sudhir Ruparelia, seeking at least €200 million in damages over the bank’s statutory management, receivership and subsequent transfer of selected assets and liabilities to dfcu Bank.
The substantive trial began in the English High Court in London on October 5, 2026, and is expected to run for about 16 weeks.
At the centre of the case is whether the events surrounding Crane Bank’s takeover in 2016 and the transfer of its selected assets and liabilities to dfcu in January 2017 involved unlawful conduct, as alleged by the claimants, or whether the transaction was a legitimate regulatory resolution undertaken to protect Uganda’s financial system, as dfcu and other defendants maintain.
There is no judgment on the merits yet, and the allegations made by the claimants remain unproven until the court reaches its findings.
Crane Bank was placed under statutory management by the Bank of Uganda in October 2016 before some of its assets and liabilities were transferred to dfcu Bank in January 2017.
Ruparelia and other former shareholders allege that Crane Bank was taken over through an unlawful process and that its assets and liabilities were subsequently transferred to dfcu at a value that did not reflect the bank’s alleged worth.
According to court documents, the claimants contend that Bank of Uganda, dfcu and other defendants were involved in a scheme that resulted in the loss of Crane Bank and caused substantial financial damage to its former shareholders.
The defendants have disputed the allegations and maintained that the takeover and subsequent transaction were carried out for legitimate regulatory and commercial reasons.
The court is expected to examine the circumstances surrounding the takeover, the valuation of Crane Bank and the transfer of its assets and liabilities, as well as the alleged losses suffered by the former shareholders.
The claimants are seeking at least €200 million in damages.
London litigation
The dispute has taken several years to reach the substantive trial.
In 2022, the English High Court dismissed the claim on jurisdictional grounds. However, the case was revived after the English Court of Appeal ruled in July 2023 that the proceedings could proceed.
The case has now moved into the evidentiary stage, with both sides expected to present extensive documentary and other evidence concerning the events before and after Crane Bank was placed under statutory management.
The proceedings have transformed what began as a Ugandan banking controversy into a complex international commercial dispute involving a former Ugandan bank, its shareholders, dfcu and European financial institutions.
For Ruparelia and the other claimants, the London proceedings represent another attempt to secure compensation for what they describe as the unlawful loss of Crane Bank.
For the defendants, the trial provides an opportunity to challenge the allegations and contest their alleged responsibility for the losses being claimed.
The size of the claim makes the outcome potentially significant for all parties.
The court will ultimately have to determine which of the competing accounts is supported by the evidence and whether the claimants are entitled to the compensation they are seeking.
Until the court delivers its judgment, however, none of the allegations of unlawful conduct can be treated as established facts.
