1,425 Malayalis Defraud Gulf Bank In Kuwait Of ₹700 Crore?: An Investigation
In a shocking revelation, 1,425 Malayalis stand accused of orchestrating an elaborate scheme to defraud Kuwait’s Gulf Bank of approximately ₹700 crore. The alleged culprits, including 800 nurses employed by Kuwait’s Ministry of Health, reportedly availed loans ranging from ₹50 lakh to ₹2 crore before fleeing to foreign countries or returning to Kerala.
The scam has prompted a multi-jurisdictional investigation, with cases registered across districts in Kerala, including Kottayam and Ernakulam. Kerala Police, in coordination with Kuwaiti authorities, is spearheading the probe, which has unveiled the intricate methods used by the accused to exploit the banking system.
How the Scam Was Executed
The fraud reportedly took place between 2020 and 2022. Borrowers initially took smaller loans, repaid them on time, and built trust with the bank. This strategy enhanced their creditworthiness, allowing them to secure larger loans. Once the substantial sums were disbursed, the borrowers abandoned Kuwait, relocating to countries such as the UK, Canada, and the US or returning to India.
The Gulf Bank’s alarm bells rang when repayment delays started surfacing. A deeper inquiry revealed that over a thousand Malayalis had collectively defrauded the bank. Suspicions of involvement by unscrupulous agents have also emerged, as these intermediaries may have facilitated both the employment and loan acquisition processes for the accused.
The Legal Response
Following the detection of the fraud, Gulf Bank officials traveled to Kerala and lodged complaints with senior police officers, including Additional Director General of Police (ADGP) Manoj Abraham. Cases have been registered under Section 188 of the Indian Penal Code, which addresses offences committed abroad by Indian nationals.
Currently, ten FIRs are registered, with more expected as the investigation progresses. The probe is being overseen by the Southern Region Inspector General of Police, with specific cases lodged in police stations across Ernakulam and Kottayam districts.
A Systematic Breach
1,425 Malayalis Defraud Gulf Bank In Kuwait Of ₹700 Crore?
The details uncovered so far point to a systematic breach. Many of the accused, predominantly healthcare professionals, were part of an agreement between the Kuwait Ministry of Health and recruitment agencies that facilitated the hiring of Indian nurses. These agencies also assisted in securing loans. While initial repayments were consistent, the sudden migration of borrowers and subsequent defaults exposed the scheme.
The Gulf Bank case is not an isolated incident. Reports suggest that similar fraudulent activities by Keralites have been noted in other Gulf countries, including Saudi Arabia, Qatar, and Oman. The total number of alleged fraud cases runs into the hundreds, underscoring a troubling pattern of financial malfeasance.
The Role of Agents and Social Networks
Investigators believe that agents played a critical role in this scam. These intermediaries not only facilitated job placements but also provided guidance on securing loans. Interviews with Gulf-based professionals suggest that such agents often leveraged social networks to recruit participants and orchestrate migrations.
Economic and Cultural Context
Kerala, known for its high literacy rate and a robust healthcare workforce, is a major supplier of nurses to Gulf countries. Historically, Malayali nurses have played a significant role in building health infrastructure in the Middle East, starting with Kuwait in the 1950s. However, the economic strain and lack of opportunities in Kerala often drive these professionals to seek better prospects abroad.
According to the “State of the World’s Nursing” report by WHO, India is the second-largest supplier of nursing professionals globally, with Kerala contributing a significant share. The pandemic further accelerated migration trends, with demand for healthcare workers soaring in countries like the UK, Canada, and Australia.
Kuwaiti Officials in Kerala
The scandal has strained diplomatic relations between Kuwait and India. Gulf Bank officials recently visited Kerala to coordinate with local authorities, providing a list of accused individuals and their last known addresses. Kuwaiti national Muhammad Abdul Vassey Kamran, representing the bank, filed formal complaints against the defaulters.
Fraudulent Borrowing Patterns
1,425 Malayalis Defraud Gulf Bank In Kuwait Of ₹700 Crore?
FIRs reveal detailed instances of loan defaults. For instance, the Kalamassery police registered a case against an individual for defaulting on ₹1.25 crore, while the Puthencruz police booked another for failing to repay ₹93 lakh. Similar cases have emerged in Kalady, Kodanad, Muvattupuzha, and other locations.
The Ripple Effect
The scam has broader implications for Kerala’s expatriate community, particularly those in the healthcare sector. Nurses from Kerala have long been a critical component of Gulf healthcare systems. However, incidents like these risk tarnishing their reputation, potentially leading to stricter visa and loan policies for Indian workers in the region.
The Push and Pull Factors
The fraudulent activities highlight the underlying socio-economic factors driving migration from Kerala. Low salaries, lack of career advancement, and economic insecurity push healthcare professionals to seek opportunities abroad. Conversely, the promise of better pay, permanent residency, and family support in countries like Canada and the UK serve as significant pull factors.
International and Domestic Fallout
This case exemplifies the challenges of addressing cross-border financial fraud. Kuwait’s banks, already reeling from pandemic-induced economic stress, now face increased scrutiny over their lending practices. In India, the case underscores the need for robust mechanisms to track overseas financial activities and deter such fraud.
Simultaneously, Gulf Bank and other financial institutions are tightening lending criteria, particularly for expatriates. Recruitment agencies are also under scrutiny, with governments urging stricter regulations to curb malpractice.
The ₹700 crore Gulf Bank scam involving 1,425 Malayalis is a stark reminder of the vulnerabilities in international financial systems. As the investigation continues, it highlights the intersection of economic desperation, professional ambition, and systemic exploitation. For Kerala’s expatriate community, the fallout from this scandal could be long-lasting, impacting their prospects and the trust they have traditionally enjoyed in Gulf countries.
