India: Police probe massive loan scam by 1,425 Keralites in Kuwait

In India, the Kerala Police have launched an investigation against 1,425 people, including 700-800 nurses, accused of defrauding Kuwait’s Gulf Bank of approximately 303 million Kuwaiti currency.

The suspects reportedly fled Kuwait after taking substantial loans and failing to repay them.

According to reports, many of those involved were employed by Kuwait’s Ministry of Health. They secured loans ranging from KD35,000 to KD45,000 before relocating to countries like the UK, US, Canada, and Australia. Authorities suspect the involvement of agents in orchestrating the scam, given the high number of participants.

The Gulf Bank of Kuwait detected the fraud about three months ago when repayments were delayed. Following the discovery, bank officials visited Kerala, a state on India’s tropical Malabar Coast, and sought assistance from local police. In response, at least 10 cases have been registered in Ernakulam and Kottayam districts.

The bank provided detailed information about the defaulters to Kerala Police. It is alleged that many suspects used the loan funds to finance their migration abroad, while others invested in properties in Kerala.

The fraudsters initially built trust with the bank by taking smaller loans and repaying them promptly. Once trust was established, they took larger sums and fled Kuwait between 2019 and 2022, according to the lawyer representing the Gulf Bank.

The large-scale scam has prompted an extensive investigation, with Kerala Police coordinating efforts to track down the suspects involved.