• December 16, 2024

India govt launches investigation into Rs 700 cr loan scam involving over 1,000 Malayalis

India govt launches investigation into Rs 700 cr loan scam involving over 1,000 Malayalis

KOCHI Dec 16: India’s Union Home Ministry has launched an investigation into a major financial scam involving over 1,000 Keralites who allegedly obtained bank loans in Kuwait and failed to repay them, resulting in a loss of approximately Rs 700 crore for a prominent Kuwaiti bank. The scam involves individuals, including around 700 nurses, who left Kuwait and settled in countries such as the UK, Australia, Canada, and New Zealand.

The Home Ministry has contacted the Kerala Police, which has registered 10 FIRs in the case, and plans to reach out to the Kuwaiti bank for a complete list of loan defaulters. Officials have emphasized the seriousness of the situation, considering the involvement of a well-known financial institution in Kuwait.

The issue surfaced after Muhammad Abdul Vassey Kamran, a senior official at Gulf Bank Kuwait, lodged a complaint during his visit to Kerala last month. Kamran met with the state police chief, leading to the subsequent registration of FIRs. Investigations are currently ongoing.

The Kuwaiti bank’s concerns stem from the fact that many defaulters, primarily nurses employed by the Kuwaiti Health Department, left the country without repaying their loans, which ranged from Rs 50 lakh to over Rs 1 crore.

Authorities are considering various measures, including legal action and the potential cancellation of nursing licenses for those involved in the healthcare sector, to address the issue and recover the outstanding loan amounts. The stringent actions being considered by both the Kerala Police and the Union Home Ministry signal a strong response to the widespread defaults and the implications for the Kuwaiti bank.