By Allen Kansiime
A long-running dispute over the collapse of Crane Bank has drawn renewed attention to Dutch financial interests, with businessman Dr Sudhir Ruparelia and fellow former shareholders seeking at least €200 million (about Shs889 billion) in damages in proceedings before London's High Court.
The case stems from the Bank of Uganda's intervention in Crane Bank in October 2016 and the subsequent transfer of some of its assets and liabilities to DFCU Bank in January 2017. Rabo Partnerships B.V., a Rabobank-related entity, is among the defendants named in the litigation.
Ruparelia and the other claimants allege that Crane Bank was taken over through an unlawful process and that its assets and liabilities were transferred to DFCU at a value that did not reflect its alleged worth. They contend that the transaction caused substantial financial losses to the former shareholders.
These allegations remain contested and have not been established as facts by the court.
Founded by Ruparelia in the 1990s, Crane Bank became one of Uganda's prominent indigenous commercial banks before the central bank intervened, citing concerns about its financial position.
Bank of Uganda subsequently placed the institution in receivership and transferred selected assets and liabilities to DFCU. The central bank maintained that Crane Bank's liabilities exceeded its assets, citing an independent audit as part of the basis for its intervention.
The former shareholders have continued to challenge aspects of the transaction through legal proceedings in Uganda and the United Kingdom.
The London case has already passed through several jurisdictional challenges. In 2023, England's Court of Appeal allowed parts of the claims against DFCU and other defendants to proceed. The UK Supreme Court subsequently declined applications for permission to appeal, clearing the way for the litigation to continue.
The proceedings have also involved extensive disclosure of documents, with further High Court rulings on disclosure issued in March 2026.
Another contested issue concerns $27.5 million reportedly linked to proceeds from the sale of a portfolio of Crane Bank loans. The claimants allege that the circumstances surrounding the payment form part of the wider wrongdoing they attribute to the transaction. The defendants dispute the allegations and maintain that the relevant transactions had legitimate explanations.
The court will have to assess the competing accounts and determine whether the claimants can establish liability and entitlement to damages.
The dispute has evolved into a complex international commercial case involving former Crane Bank shareholders, DFCU and entities connected to European financial institutions.
For Ruparelia and his fellow claimants, the proceedings represent another attempt to secure compensation over Crane Bank's loss. For the defendants, they provide an opportunity to contest the allegations and challenge their alleged responsibility.
At least €200 million is now at stake as the London court examines the evidence surrounding one of Uganda's most contentious banking disputes.
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