Kerala High Court Directs State Crime Branch to Take Over Kuwait Bank Loan Fraud Cases

Kerala, February 27, 2026 – The Kerala High Court has ordered that investigations into multiple loan fraud cases involving a Kuwait-based bank be transferred to the Kerala State Crime Branch.

The cases originate from complaints by Al Ahli Bank KSCP, Kuwait, alleging that borrowers obtained loans dishonestly while working in Kuwait, diverted funds to India, and left the country without repayment. The alleged frauds involve significant sums and cross-border elements, prompting the court to seek a more specialised investigation.

Until now, complaints were filed at various police stations in Kottayam and Ernakulam districts under Section 420 (cheating) of the Indian Penal Code. The High Court, noting the international dimensions of the matters, directed that the State Crime Branch take over all ongoing investigations, with supervision by an officer of Superintendent of Police rank or above.

The decision aims to centralise the inquiry, ensuring that cases involving overseas transactions and absconding accused are handled efficiently and professionally.

The High Court’s order reflects growing attention to cross-border financial fraud and the need for specialized police intervention in such matters.

Description: The Kerala High Court has ordered the transfer of multiple loan fraud investigations involving Al Ahli Bank KSCP, Kuwait to the State Crime Branch. The cases involve borrowers who allegedly obtained loans dishonestly while working in Kuwait, diverted the funds to India, and left without repayment. Previously registered at police stations in Kottayam and Ernakulam districts under Section 420 IPC, the court highlighted the international and cross-border aspects of the frauds. The State Crime Branch will now handle all investigations under the supervision of a Superintendent of Police or higher officer, ensuring a specialized and coordinated approach to these complex financial crime cases.