Tycoon Sudhir loses CMI land deal
Apr 09, 2008
CITY tycoon Sudhir Ruparelia has lost the offer to purchase the 6.2 acres of land occupied by the Chieftaincy of Military Intelligence (CMI) in Kitante on Yusuf Lule Road, Kampala. The land is to be sold through competitive bidding.
By Fortunate Ahimbisibwe
CITY tycoon Sudhir Ruparelia has lost the offer to purchase the 6.2 acres of land occupied by the Chieftaincy of Military Intelligence (CMI) in Kitante on Yusuf Lule Road, Kampala.
Instead, the Cabinet last month allowed the defence ministry to sell the land through competitive bidding.
Consequently, the land will be sold off immediately to other private developers, acting permanent secretary Rosette Byengoma said yesterday.
“We requested the Cabinet to allow us sell the land because Sudhir has not paid the amount which was determined by the Chief Government Valuer. The Cabinet has allowed us to sell it to other interested parties.†The ministry will, therefore, advertise the land “in a few days to come†as required by the law, Byengoma said.
Defence minister Crispus Kiyonga noted the matter was “now a Cabinet issue.â€
A ministry source added that two other investors had expressed interest in the land and were willing to pay more than the sh21b, the amount President Museveni has also endorsed.
The proposal to sell the land, said Byengoma, was tabled before the Cabinet after Sudhir failed to respond to the ministry’s invitation to discuss the matter afresh.
Sudhir last month denied receiving the invitation. He could not be reached for comment yesterday.
However, a source said the tycoon declined to negotiate afresh because he already had the land title issued by the Uganda Land Commission on October 31, 2006.
Commission chief Jehoash Mayanja Nkangi and secretary K.S. Mubbala approved the deal on October 30, 2006 after Sudhir paid sh168m of the sh3b price the commission agreed.
Under the sale agreement, Sudhir was supposed to develop the land before May 2011. He planned to construct a modern shopping mall and a five-star hotel.
Byengoma told the public accounts committee last month that Sudhir’s sh168m was partial payment for the land formerly belonging to Shimoni Primary School. When Shimoni land was allocated to a Saudi Arabian investor, Sudhir was offered the CMI land as an alternative. But this sparked off a controversy, particularly over the money Sudhir was to pay for the prime land.
The Ministry of Defence has rejected the transaction and set its own terms that whoever takes the land should build a new and modern headquarters for the intelligence agency elsewhere. Sources said the ministry put a caveat on the land.
The ministry is also selling its 42-acre land in Mbuya, where the army primary school is located.
However, a board will be set up to oversee the acquisition of land for the army, Byengoma said.
CITY tycoon Sudhir Ruparelia has lost the offer to purchase the 6.2 acres of land occupied by the Chieftaincy of Military Intelligence (CMI) in Kitante on Yusuf Lule Road, Kampala.
Instead, the Cabinet last month allowed the defence ministry to sell the land through competitive bidding.
Consequently, the land will be sold off immediately to other private developers, acting permanent secretary Rosette Byengoma said yesterday.
“We requested the Cabinet to allow us sell the land because Sudhir has not paid the amount which was determined by the Chief Government Valuer. The Cabinet has allowed us to sell it to other interested parties.†The ministry will, therefore, advertise the land “in a few days to come†as required by the law, Byengoma said.
Defence minister Crispus Kiyonga noted the matter was “now a Cabinet issue.â€
A ministry source added that two other investors had expressed interest in the land and were willing to pay more than the sh21b, the amount President Museveni has also endorsed.
The proposal to sell the land, said Byengoma, was tabled before the Cabinet after Sudhir failed to respond to the ministry’s invitation to discuss the matter afresh.
Sudhir last month denied receiving the invitation. He could not be reached for comment yesterday.
However, a source said the tycoon declined to negotiate afresh because he already had the land title issued by the Uganda Land Commission on October 31, 2006.
Commission chief Jehoash Mayanja Nkangi and secretary K.S. Mubbala approved the deal on October 30, 2006 after Sudhir paid sh168m of the sh3b price the commission agreed.
Under the sale agreement, Sudhir was supposed to develop the land before May 2011. He planned to construct a modern shopping mall and a five-star hotel.
Byengoma told the public accounts committee last month that Sudhir’s sh168m was partial payment for the land formerly belonging to Shimoni Primary School. When Shimoni land was allocated to a Saudi Arabian investor, Sudhir was offered the CMI land as an alternative. But this sparked off a controversy, particularly over the money Sudhir was to pay for the prime land.
The Ministry of Defence has rejected the transaction and set its own terms that whoever takes the land should build a new and modern headquarters for the intelligence agency elsewhere. Sources said the ministry put a caveat on the land.
The ministry is also selling its 42-acre land in Mbuya, where the army primary school is located.
However, a board will be set up to oversee the acquisition of land for the army, Byengoma said.