Bank of Uganda has agreed to refund Dr. Sudhir Ruparelia’s Shs277m, money he had deposited with the central bank as security for operating four forex bureaus. It also includes money Sudhir had paid to renew licenses for the money changing businesses.
The central Bank’s Deputy Governor Louis Kasekende signed the consent arrangement while Sudhir signed on behalf of the bureaus. The Commercial Court’s assistant Deputy Registrar, Lilian Buchana signed and sealed the consent in order to give it a legal effect.
Sudhir had accused the Central Bank of holding onto the money in question in a bid to coerce him into negotiating a case where he is accused of purportedly causing the collapse of Crane Bank.
After closing Crane Bank, the central bank also closed the four forex bureaus which Sudhir was running at the time. The businessman demanded the return of the money he had deposited with the regulator as a security for running the business of the bureaus. The four bureaus were stationed at Speke Hotel, Speke Forex (Kampala Road), Stanhope Forex and Red Fox.
But the Central bank wrote back, stating that they could not refund the money before the conclusion of the case they had filed against Sudhir regarding the collapse of Crane Bank.
After fruitless back and forth negotiations between the two parties over the refund, the businessman filed a case at the commercial section of the High Court. He was questioning the rationale of holding the money he had deposited as security for running the forex bureaus even when the Central Bank had closed them.