KUWAIT CITY, Dec 8: A Kuwaiti bank is pursuing legal action against 1,425 Indian citizens, including 800 nurses from the state of Kerala, India for defaulting on loans amounting to an estimated 25.5 million Kuwaiti dinars, reports Al-Seyassah Daily. These individuals reportedly fled Kuwait without repaying their debts, according to various Indian media outlets.

Many defaulters allegedly used the borrowed funds to finance migration to foreign countries or purchase properties in Kerala. Reports from the Indo-Asian News Agency reveal that some moved to nations such as the UK, Canada, the US, and Australia. The fraudulent activity involved a calculated strategy where borrowers initially secured small loans, repaid them promptly to gain the bank’s trust, and obtained larger sums before fleeing Kuwait without leaving any trace. The bank has lodged a formal complaint with the Assistant Director General of Kerala Police. In response, Kerala state police are reportedly considering assigning the case to the Inspector General of the Southern Region to ensure a comprehensive investigation.

The investigation revealed that the scheme began unraveling three months ago when payment delays triggered suspicions. Further inquiries exposed the involvement of over 1,400 individuals. The majority of the fraudulent activities reportedly occurred between 2019 and 2022, as noted by the bank’s lawyer, who The Indian Express quoted. The scheme came to light post-2022 when officials noticed significant defaults and began tracing defaulters across various countries. This large-scale fraud has prompted concerns about regulatory weaknesses and the role of intermediaries in enabling such schemes. The investigation will likely focus on holding the defaulters accountable, recovering the funds, and implementing safeguards to prevent similar occurrences in the future. The case underscores the risks faced by financial institutions when dealing with expatriate clients and highlights the need for robust measures to mitigate loan-related fraud.