The Directorate of Public Prosecution (DPP) has denied alleged plans to press criminal charges against city tycoon, Sudhir Ruparelia.
Sudhir was sued by Bank of Uganda for allegedly embezzling over Shs400bn from Crane bank and is pushing him to refund Shs 397bn and the bank’s land titles that he transferred to his company Meera.
Media reports claimed that DPP had picked up the case and was embarking on criminal proceedings against Sudhir for alleged fraud
Jane Akuo, the DPP’s head of the Public Relations and International Cooperation Department, says they have not charged Sudhir with anything although they received complaints from Bank of Uganda.
“We cannot file charges on a matter that is not under police investigation. There are no preferred charges because what we have received is a criminal complaint about the mismanagement of the bank,” she said.
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Akuo said it would be premature to press charges when police has not yet started investigating a case and that in this case, police is not investigating Sudhir.
Nzeyi sues BoU, Sudhir
Meanwhile, the liquidated National Bank of Commerce (NBC) and former owner Amos Nzeyi have sued Bank of Uganda, Crane Bank, Sudhir and a Kenyan tycoon Rasiklal Chhotalal Kantaria.
The suit was filed in the High Court on Tuesday. The NBC and its former chairman Nzeyi are represented by lawyer Fred Muwema.
In the suit, Nzeyi, wants 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.
Nzeyi alleges that BoU’s takeover and liquidation of the bank 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 its alleged failure to supervise the banking sector, which is its statutory duty.
Nzeyi wants BoU to provide a register of assets and liabilities inherited from NBC at the time of takeover, proof of tax compliance in the sale of NBC assets to Crane Bank and a forensic investigation report plus refund of the money spent on purported liquidation expenses.
He is seeking general damages for reputation damage, loss of business, inconvenience and mental anguish caused to the shareholders.