Kerala police launches probe into Rs 700 cr loan scam involving over 1000 Malayalis from Kuwait's Gulf Bank

synopsis

gulf bank fraud

Kochi: An investigation has been initiated in Kerala concerning a group of Malayalis accused of fleeing after securing loans worth crores from Gulf Bank in Kuwait using salary certificates as collateral. It is believed that as many as 1,425 Keralites were involved in defrauding the bank of approximately Rs 700 crore. The Deputy General Manager of Gulf Bank traveled to Kerala and filed a complaint with the ADGP responsible for law and order. Following the complaint, 10 cases have been registered in Ernakulam and Kottayam districts, with eight of them falling under the jurisdiction of the Ernakulam Rural Police.

The Ernakulam and Kottayam district Crime Branch divisions will conduct the investigation, with the IG of the Southern region overseeing the inquiry. The investigation has revealed that most of the 1,425 Malayalis involved in the scam are nurses. Gulf Bank authorities have informed the state police that around 700 Malayali nurses are believed to have committed the fraud. After taking large loans, these individuals are said to have migrated to other countries.

According to authorities, after obtaining loans from Gulf Bank in Kuwait, many of these individuals moved to countries like the United States, Canada, and the UK, as well as returning to Kerala.

Gulf Bank authorities have informed the Kerala police that the fraud took place between 2020 and 2022. It is revealed that around 700 individuals, including Malayali government employees in Kuwait and nurses working in the Ministry of Health, took loans from the bank and absconded.

Initially, the accused took small loans from the bank, repaid them promptly to improve their credit scores, and later took larger amounts, absconding after that. Each individual took out loans ranging from Rs 50 lakh to over Rs 2 crore. The Gulf Bank authorities began their investigation when the loan repayments were delayed. 

The bank authorities met with the state police chief and the ADGP. Following this, on November 5, a formal complaint was submitted to ADGP Manoj Abraham. The complaint provided details including the addresses of the accused. Although the crime occurred outside Kerala, the law allows cases to be filed against citizens who commit offenses abroad and return to India.

Based on clear evidence of the bank being deceived, cases have been filed against 10 individuals from the Ernakulam and Kottayam districts. The police suspect that there was a larger conspiracy behind the incident. Investigations are also underway to determine whether any intermediaries were involved in facilitating the fraud.