Kuwait bank alleges financial fraud against 13 Keralites in ₹10 cr loan default case, Crime Branch begins probe
Following default of massive amount, Al Ahli Bank wrote to the Kerala DGP, ADGP, as well as a number of SPs and commissioners.
Following default of massive amount, Al Ahli Bank wrote to the Kerala DGP, ADGP, as well as a number of SPs and commissioners.
Following default of massive amount, Al Ahli Bank wrote to the Kerala DGP, ADGP, as well as a number of SPs and commissioners.
While a Crime Branch probe is underway in a case related to an alleged ₹700 crore loan default by Keralites in Kuwait, another financial institution, Al Ahli Bank of Kuwait (ABK), has filed a series of complaints against defaulters hailing mostly from Kottayam.
Kerala police have registered 13 cases so far following the complaint. The cases have been filed in police stations in Kottayam and Ernakulam.
As per the complaint filed by Mohammad Al Qattan, a representative of the bank to the state police chief, expatriate Keralites made an unlawful gain of ₹10.3 crore by availing loans. The bank has alleged that between 2019 and 2021, 13 Keralites approached the bank and loans were sanctioned in their favour.
They obtained the loans by giving false assurances to the bank that repayment would be made from their salary earnings and that they would continue their employment in Kuwait until their loan tenure was fully completed.
The bank said in the complaint that they resigned from employment and left Kuwait without repaying the loan and did not inform the authorities regarding their departure.
The bank asserts that more than ₹300 crore is still outstanding and that there are about 800 defaulters across India. Crime Branch, Kochi has been entrusted with the probe related to cases registered in Kerala. Thomas J Anakkallunkal, the counsel representing the bank, quoted bank officials as saying that Keralites make up the majority of the hundreds of Indians who fled Kuwait without paying back their debts.
"Many of them, who worked for the Kuwaiti Ministry of Health, are now residing in countries like Ireland, the United Kingdom, the United States, Canada, Australia, and New Zealand, among others. Officials from Al Ahli Bank say that the loans were given based on the borrower's employment and income. However, a few of them departed covertly to accept higher-paying jobs elsewhere," said Thomas.
The loan amount obtained from the bank even covered the migration costs, the bank authorities said in a statement. Following the default of a massive amount, Al Ahli Bank wrote to the Kerala DGP, ADGP, as well as a number of SPs and commissioners. The district police chiefs were subsequently directed by the DGP to handle these complaints.
Kuwaiti banks have begun to reassess loan rules for Keralites, potentially reducing financial inflows into Kerala's economy, according to an ABK representative in Kochi.
"Al Ahli Bank of Kuwait remains committed to maintaining the financial system's integrity. Willful defaulters' premeditated acts undermine not only our institution but also the reputation and opportunities of the Indian community overseas. We will continue to explore all legal options to ensure accountability. Criminal complaints are being filed in all districts of Kerala as part of the procedure, and the bank intends to pursue the matter in other states also," the representative said in a statement.
In December 2024, Kuwait-based Gulf Bank filed cases against Keralites alleging fraud against 1400 wilful defaulters. The High Court had quashed the bail pleas and ruled in favor of Kuwait Gulf Bank's appeal in May, which asked the DGP to transfer the cases recorded in Kerala to the Crime Branch.