Kuwait’s Al Ahli Bank has accused over 800 Indian expatriates, many of whom are Malayalis from Kerala, of defrauding the bank of approximately Rs2 billion (6.9 million Kuwaiti dinar). The alleged fraud involves individuals who took out personal and business loans between 2019 and 2023 and subsequently left Kuwait without repaying the debts. Some of …
Kuwait’s Al Ahli Bank has accused over 800 Indian expatriates, many of whom are Malayalis from Kerala, of defrauding the bank of approximately Rs2 billion (6.9 million Kuwaiti dinar). The alleged fraud involves individuals who took out personal and business loans between 2019 and 2023 and subsequently left Kuwait without repaying the debts. Some of the accused have reportedly migrated to countries such as the United States, United Kingdom, Canada, Australia, and New Zealand.
According to the bank’s complaint, the loans were obtained by providing false assurances of repayment through salary deductions and commitments to remain employed in Kuwait until the loan tenure ended. However, many of the borrowers resigned from their positions and left the country without notice, leading to the defaults. The majority of the accused are believed to have been employed in Kuwait’s Ministry of Health before relocating abroad for higher-paying jobs.
In response to the allegations, the Kerala Police have registered multiple FIRs in districts including Kottayam and Ernakulam. The Crime Branch in Kochi has been tasked with investigating the cases. Additionally, 13 individuals are facing fresh cases over alleged loan defaults amounting to Rs10.3 million between 2019 and 2021. The bank has expressed its intent to explore all legal options to ensure accountability and to safeguard its reputation.
This incident follows a similar case in December 2024, where Kuwait’s Gulf Bank accused around 1,400 Keralites of loan fraud. The cumulative effect of such cases has led Kuwaiti banks to reassess their lending policies for Indian expatriates, potentially impacting financial inflows into Kerala’s economy. The situation has raised concerns about the integrity of the Indian expatriate community in the Gulf and the potential long-term effects on remittances.
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