Kuwait’s Al Ahli Bank accuses hundreds of Indian expats of Rs2 billion loan fraud

Dubai: Complaints have surfaced that hundreds of Indian expatriates, many of them Malayalis, allegedly defrauded Kuwait’s Al Ahli Bank by taking loans and fleeing the Gulf country without repayment.

The cases, amounting to more than Rs2 billion (6.9 million Kuwaiti dinar), have led to multiple FIRs in Kerala, IANS reported.

According to officials, around 806 people are under the scanner, with a significant number hailing from Kottayam and Ernakulam districts.

Police said the accused worked in Kuwait between 2019 and 2023, availed loans from Al Ahli Bank, and later left the country — some migrating to the US, UK, Canada, Australia, and New Zealand.

In addition to the larger probe, Onmanorama reported that 13 Keralites are facing fresh cases over alleged loan defaults worth Rs10.3 million between 2019 and 2021.

Complaints filed by bank representative Mohammad Al Qattan with the Kerala State Police Chief led to FIRs in Kottayam and Ernakulam.

The bank alleged the loans were obtained by giving false assurances of repayment from salaries and commitments to remain employed in Kuwait until the loan tenure ended. Instead, the accused resigned and left without notice, the complaint said.

The Crime Branch in Kochi has been tasked with investigating the cases. Thomas J. Anakkallunkal, counsel for the bank, told Onmanorama that Keralites make up the majority of Indians accused of defaulting, adding that several were previously employed in Kuwait’s Ministry of Health before moving abroad for higher-paying jobs.

Bank officials also claimed that some loan amounts were used to cover migration costs.

“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,” an Al Ahli Bank representative in Kochi said.

The defaults have prompted Kuwaiti banks to reassess their lending policies for Indian expatriates, potentially reducing financial inflows into Kerala’s economy.

The case comes on the heels of another major scandal: In December 2024, Kuwait’s Gulf Bank accused around 1,400 Keralites of loan fraud. In May this year, the Kerala High Court upheld Gulf Bank’s appeal to transfer those cases to the Crime Branch for deeper investigation.