The Kerala Police have initiated an extensive probe into a massive fraud involving approximately 1, 425 Keralites including 700 nurses who allegedly duped the Gulf Bank of Kuwait of around Dh 303 million (Rs 700 crore).
The probe was spearheaded following numerous reports from bank officials, who detected loan defaults and irregularities after many borrowers fled various countries such as the United Kingdom, Canada, and Australia, without repaying their debts.
Bank fraud
The Gulf Bank was targeted by some people who initially gained the trust of the bank by taking smaller loans and repaying them on time. This strategy enabled them to borrow huge amounts of money ranging from 35000 to 45000 Kuwaiti dinars (KWD) which is about Rs five million to over Rs two crores before leaving.
The fraud was mainly carried out between 2019 and 2022. Many of the accused worked at the Kuwait Ministry of Health at the time and took huge amounts of loans, according to a lawyer representing the Gulf Bank in the case, as quoted by the Indian Express.
Investigation details
Mohammed Abdul Vassey, the Deputy General Manager of Gulf Bank visited Kerala and sought help from authorities. The state police swung into action and filed 10 cases in both Ernakulam and Kottayam districts and registered cases under sections 420 (Cheating) and 406 (Criminal breach of Trust) of the IPC.
Bank officials submitted the regional addresses of the defaulters who were later interrogated by the police. They are still in the process of identifying other players in the big scheme.
Since many people organized this fraud, police assume that agents could be involved in the organization of this mass fraud. Some of the borrowers are said to have utilized their loan funds to pay for their migration to foreign lands or to purchase properties in Kerala.
Legal implications
The officials of this Kuwaiti bank have complained that they are unable to directly deal with these defaulters as they relocated to other countries. But the law in India permits prosecution of Indian citizens for offences committed outside India in certain conditions and that is why this has been cases pursued aggressively in Kerala.
