Kerala authorities are probing a massive loan fraud involving Malayalis who allegedly defrauded Kuwait’s Gulf Bank of approximately Rs 700 crore. More than 1,400 individuals, predominantly nurses, are suspected of exploiting salary certificates to secure loans before absconding.
The Deputy General Manager of Gulf Bank lodged a formal complaint with Kerala’s Additional Director General of Police (ADGP) for law and order. Following this, 10 cases have been filed across Ernakulam and Kottayam districts, with the majority under the jurisdiction of the Ernakulam Rural Police. Officials are considering transferring the investigation to the Inspector General of Police (IGP), South Zone, although no official directive has been issued yet.
Initial findings indicate that the accused employed a calculated scheme: they took small loans initially, repaid them on time to build trust, and then took larger loans before fleeing to India or other countries. The bank provided the local addresses of the defaulters to the police, enabling further action.
The fraud, unearthed three months ago, is suspected to be part of a larger conspiracy. Authorities are gearing up for an extensive investigation to uncover the network behind the scam and ensure justice for the victims. The incident highlights the urgent need for stronger cross-border cooperation and stricter loan vetting processes to prevent similar financial crimes in the future.
