Court orders ex-MP Mugoya to pay sh392m in land fraud case

KAMPALA - The Commercial Court has ordered former Bukooli North MP Gaster Kyawa Mugoya to pay shillings 392 million in damages over a fraudulent land sale dating back to 2007.

In a judgment delivered on February 6, 2026, former Commercial Court head judge Stephen Mubiru directed Mugoya to compensate businessman Pat Chimanbhai Ranchodbhai for losses suffered in the failed land transaction.

Justice Mubiru awarded Ranchodbhai shillings 327 million in special damages, which will attract interest at 20% per annum, and shillings 65 million in general damages, which will attract interest at 8% per annum.

The interest will run from May 7, 2019, when the suit was filed, until payment in full. Mugoya was also ordered to pay the costs of the suit.

The judge ruled that Ranchodbhai was entitled to damages for loss of bargain, after finding that Mugoya fraudulently sold him land he did not own.

“It was proved that the land belongs to the lady who claimed it and the plaintiff was advised to recover his money from the defendant,” Mubiru ruled.

He added that since Mugoya did not challenge the evidence and had undertaken to refund the purchase price, it was inescapable to impute knowledge of the fraudulent acquisition to him.

According to the judge, Mugoya received money for which he provided no benefit and has never refunded it.

“The defendant’s retention of the money would be unjust,” Mubiru stated.

Background

Court records show that on November 9, 2007, Ranchodbhai entered into an agreement with Mugoya to purchase land comprised in Kibuga Block 10 Plot 584 at Bukesa-Namirembe in Kampala for shillings 300 million.

Mugoya later handed over a special certificate of title and a transfer instrument, on the basis of which Ranchodbhai was registered as proprietor of the land.

However, about six months later, Ranchodbhai was summoned by the Police Criminal Investigations Directorate over alleged fraudulent dealings by Mugoya in the same land.

Two months after that, the Commissioner for Land Registration notified Ranchodbhai that his registration had been cancelled on grounds that the special certificate of title had been issued in error.

The matter was later settled by the Court of Appeal, which found that Mugoya had no proprietary interest in the land prompting Ranchodbhai to file the suit in the Commercial Court.