A Kuwaiti bank is taking legal action against 1,425 Indian citizens, including 800 nurses from Kerala, for defaulting on loans totaling around 25.5 million Kuwaiti dinars, according to reports from Al-Seyassah Daily. The individuals are said to have fled Kuwait without repaying their debts, with various Indian media outlets confirming the details.
Many of the defaulters reportedly used the loans to finance their migration to other countries or to buy property in Kerala. Some are believed to have moved to countries such as the UK, Canada, the US, and Australia. The scheme involved a strategy where borrowers initially took small loans, repaid them promptly to gain the bank’s trust, and then took out larger sums before fleeing Kuwait without leaving a trace.
The bank has filed a formal complaint with the Assistant Director General of Kerala Police, who is considering passing the case on to the Inspector General of the Southern Region for a more thorough investigation. According to Manorama, the bank has provided Kerala police with detailed information about the defaulters, and cases have been registered in Kerala. Authorities suspect that intermediaries or agents may have played a role, given the scale of the fraud. At least 10 cases have already been filed in Kerala’s Ernakulam and Kottayam districts, following visits by bank officials seeking local police assistance.
The investigation began three months ago when delays in repayments raised suspicions. Further inquiry uncovered the involvement of more than 1,400 individuals, with the bulk of the fraudulent activities occurring between 2019 and 2022. The scheme was only uncovered after 2022 when the bank noticed significant defaults and began tracing the defaulters across various countries. This large-scale fraud has raised concerns about regulatory gaps and the involvement of intermediaries in facilitating such schemes.
Authorities are focusing on holding the defaulters accountable, recovering the funds, and implementing safeguards to prevent similar incidents in the future. This case highlights the risks financial institutions face when dealing with expatriate clients and underscores the need for stronger measures to combat loan-related fraud.
