New Delhi, Dec 19 In a significant relief for former employees of the collapsed Kingfisher Airlines Limited (KAL), the Enforcement Directorate (ED) has facilitated the restitution of Rs 311.67 crore towards their long-pending workmen dues.
This move underscores the agency's commitment to victim-centric restoration under the Prevention of Money Laundering Act (PMLA), 2002.
The funds stem from an order dated December 12, 2025, by the Recovery Officer of Debts Recovery Tribunal-I (DRT), Chennai, directing the release of proceeds from sold attached shares - previously restituted to State Bank of India (SBI) by the ED.
The amount will be transferred to the Official Liquidator for disbursement to ex-employees who have waited over a decade for salaries and dues. The ED's Mumbai Zonal Office launched the investigation based on CBI FIRs alleging bank fraud and criminal conspiracy by KAL, fugitive promoter Vijay Mallya (declared a Fugitive Economic Offender in 2019), and associates.
Probes revealed massive diversion of loan funds, leading to attachments of assets belonging to KAL, Mallya, United Breweries Holdings Ltd., and linked entities.
To date, the ED has restituted assets worth Rs 14,132 crore to the SBI-led consortium under PMLA Section 8(8), forming the pool for this payout.
Proactively, the ED coordinated with SBI, prompting the bank to file an application consenting to prioritise employee claims over secured creditor rights. This culmination in DRT's approval marks a rare prioritisation of workmen's dues in high-profile fraud cases.
Former Kingfisher staff, many facing financial ruin since the airline's 2012 shutdown, have long protested for justice amid Mallya's ongoing extradition battle from the UK over defaults exceeding Rs 9,000 crore.
Employee unions hailed the development as a breakthrough, hoping it would set a precedent for similar cases. It highlights the ED's evolving role in not just seizing crime proceeds but ensuring they benefit affected stakeholders, particularly vulnerable workers.
The case exemplifies challenges in recovering funds from economic offenders while balancing creditor and employee rights, reinforcing regulatory efforts against corporate malfeasance.
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