Sudhir denies takeover of Mbabazi bank assets
Kampala- Property mogul Sudhir Ruparelia has submitted his defence in the case that was recently brought against him by former shareholders of the defunct National Bank of Commerce (NBC).
In his written defence he filed before the Commercial Court last Thursday, Mr Ruparelia denied being involved in the takeover of NBC about five years ago. The NBC was taken over by Bank of Uganda (BoU), which sold it to Crane Bank owned by Mr Ruperelia at that time. Crane Bank too was liquidated in October last year and later sold to dfcu Bank.
“The 3rd defendant (Mr Ruparelia) did not take possession of NBC’s T24 Core Banking System at all nor did he in any way act with dishonesty. The plaintiffs shall be put to strict proof of the said allegations,” Mr Ruparelia states in his defence.
He is represented by Kampala Associated Advocates.
“The 3rd defendant (Mr Ruparelia) avers that he was not party to the transaction for the sake of NBC assets and any allegations in the plaint in relation to the said transaction cannot be attributed to him nor can he be held liable for any alleged loss caused as a result of the said sale of the NBC assets,” he says.
However, Mr Ruparelia admits that the NBC assets were purchased by Crane Bank but for lawful consideration.
In September 2012, BoU took over NBC and sold it to Crane Bank owned by Mr Ruparelia at the time.
NBC was co-owned by former prime minister Amama Mbabazi, city businessman Amos Nzeyi and retired Supreme Court judge George Kanyeihamba, among others.
Last month, Mr Nzeyi sued Mr Ruparelia on account that he and Mr Rasiklal Chhotalal Kantaria acted dishonestly in purchasing NBC assets and did not meet the test of managing, controlling and owning the bank.
Mr Ruparelia is jointly sued with his business associate Kantaria, Crane Bank and BoU.
Mr Ruparelia denies having committed any act of dishonesty or fraud or acted in any irregular way. He argues that the allegations against him have no merit.
His co-accused, Mr Kantaria, Crane Bank and BoU, had not filed their defence by close of yesterday.
“The 3rd defendant (Mr Ruparelia) avers that he did not authorise the execution of the purchase of assets and assumption of liabilities agreement for NBC’s assets and that the allegations of dishonesty are false and misconceived,” Mr Ruparelia further states in his defence to the NBC suit.
In the suit, Mr Nzeyi wants the Commercial Court to declare that BoU’s takeover of NBC and the subsequent sale of its assets to Crane Bank within six hours after the seizure on September 27, 2012, was illegal and in bad faith.
Mr Nzeyi further alleges that the central bank’s takeover and liquidation of NBC was in breach of the Financial Institutions Act 2004, and should be declared null and void.
He also wants court to hold BoU liable for failing to supervise the banking sector, which is its statutory duty.
He is further seeking court to order BoU to provide a register of assets and liabilities inherited from NBC at the time of the takeover, proof of tax compliance in the sale of NBC assets to Crane Bank and a forensic investigation report plus refund of the money paid for purported liquidation expenses.
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