Kingfisher Airlines. File
| Photo Credit: AP
The Enforcement Directorate has facilitated the restitution of ₹311.67 crore towards long-pending workmen dues of Kingfisher Airlines Limited (KAL), a senior agency official said on Thursday (December 18, 2025).
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“The restitution has been enabled pursuant to the order on December 12, 2025, passed by the Recovery Officer, Debts Recovery Tribunal-I, Chennai, directing release of funds realised from the sale of attached shares which had been earlier restituted to State Bank of India (SBI) by the ED under PMLA (Prevention of Money Laundering Act),” the official said.
The amount is to be transferred to the Official Liquidator for disbursement to former employees of Kingfisher Airlines.
Bank fraud
The ED had initiated its probe based on the first information reports registered by the Central Bureau of Investigation against KAL, businessman Vijay Mallya, and associated entities for alleged bank fraud and criminal conspiracy.
“The investigation revealed that substantial portions of loan facilities availed by Kingfisher Airlines Ltd. were diverted for servicing existing debts with other banks and lenders, settling documentary bills discounted by Bank of Baroda, and remitting significant amounts abroad on the pretext of lease rentals and purchase of aircraft parts,” the official said.
During the investigation, ED identified and provisionally attached properties and assets of Mr. Mallya, KAL, and associated entities, aggregating to ₹5,042 crore, in addition to the attachment of properties worth ₹1,694.52 crore under the erstwhile Code of Criminal Procedure.
‘Workmen’s dues take priority’
Based on the findings, the ED filed prosecution complaints against the accused persons. Mr. Mallya was declared a wanted person under the Fugitive Economic Offences Act on January 5, 2019.
“Further, on applications filed by the SBI-led bank consortium under Section 8(8) of PMLA, the Special Court permitted restitution of all attached properties through the Recovery Officer, DRT, Bengaluru, and the ED has accordingly restituted the attached assets to the consortium banks… the ED has restored properties/assets amounting to ₹14,132 crore to the SBI, thereby creating the asset pool from which the present restitution has been facilitated,” said the official.
The ED coordinated with all stakeholders to ensure settlement of the long-pending workmen dues. “Acting upon the ED’s facilitation, SBI approached the DRT (Debt Recovery Tribunal) by filing an Interlocutory Application No. 01/2025, offering the restituted assets for discharge of workmen dues and expressly consenting to the priority of such dues over secured creditor claims,” the agency said.
It culminated in the DRT directing the Official Liquidator to disburse workmen dues mounting to ₹311.67 crore to former employees of Kingfisher Airlines.
Published – December 18, 2025 10:15 pm IST
