Summary:
- Around 1,425 Indian expatriates, primarily nurses from Kerala, allegedly defrauded Kuwait’s Gulf Bank of ₹700 crore by taking loans and fleeing to various countries, including India, Canada, and Australia.
- The fraudulent scheme involved initially repaying small loans to build trust before securing larger amounts and defaulting, with most cases occurring between 2019 and 2022.
- Gulf Bank has filed 10 FIRs in Kerala, and investigations are underway with legal actions initiated under Indian law for crimes committed abroad.
- Many defaulters cited job losses during the COVID-19 pandemic as a reason for non-repayment, while others used the loans for migration or property purchases.
In a significant financial scandal, 1,425 Indian expatriates, primarily nurses from Kerala, have been accused of defrauding Kuwait’s Gulf Bank of approximately ₹700 crore (25.5 million Kuwaiti Dinars). The individuals allegedly obtained loans while working in Kuwait and then fled the country without repaying, with many relocating to nations such as the UK, Canada, Australia, and the US. This large-scale fraud has triggered legal actions and investigations in both Kuwait and India.
According to reports, most of the accused were employed by Kuwait’s Ministry of Health (MoH) and secured loans using their salary certificates. Initially, they built trust by repaying smaller loans on time before taking larger sums and defaulting. The fraudulent activities reportedly occurred between 2019 and 2022, with the scheme coming to light after the bank noticed significant defaults post-2022.
The Gulf Bank has filed complaints with Kerala Police after identifying the defaulters. Legal proceedings have been initiated under Sections 420 (cheating) and 406 (criminal breach of trust) of the Indian Penal Code (IPC). So far, at least 10 First Information Reports (FIRs) have been registered in Kerala’s Ernakulam and Kottayam districts. These cases involve loan amounts ranging from ₹50 lakh to ₹2 crore. The police are investigating whether the accused are currently residing in India or abroad.
Advocate Thomas J Anakkallunkal, representing the Gulf Bank in Kerala, stated that some of the defaulters used the loans to migrate or purchase properties in Kerala. He emphasized that while many believed they could evade consequences due to a lack of assets in Kuwait, Indian law allows for prosecution of crimes committed abroad if the accused are Indian citizens.
The Gulf Bank has shared detailed information about the defaulters with Kerala authorities. Investigations have revealed that some individuals returned to India during the COVID-19 pandemic and failed to resume repayments. Others reportedly used fraudulent methods to secure larger loans before fleeing Kuwait.
Mohammed Abdul Vassey, Deputy General Manager of Gulf Bank, visited Kerala recently to meet with police officials and file complaints against identified defaulters. Police investigations are ongoing, with statements being recorded from some accused individuals. Authorities suspect a broader conspiracy involving intermediaries who may have facilitated these fraudulent activities.
This case has also highlighted similar loan frauds involving Keralites in other Gulf nations like the UAE, Saudi Arabia, Qatar, and Oman over recent years. The Union Home Ministry in India has taken note of the matter, indicating potential national-level scrutiny into such financial crimes.
As legal proceedings continue, both Kuwaiti authorities and Kerala Police are working closely to ensure accountability. While some defaulters may seek to resolve cases by repaying their dues under compoundable offenses, others face stringent legal consequences for their actions.
Source: Daily Inqilab
