Thu Dec 18 16:45:17 UTC 2025: Summary:

The Enforcement Directorate (ED) of India has facilitated the restitution of ₹311.67 crore to the former employees of Kingfisher Airlines Limited (KAL). This action follows an order from the Debts Recovery Tribunal (DRT) in Chennai, directing the release of funds from the sale of attached KAL shares, which the ED had previously restituted to the State Bank of India (SBI). The ED’s investigation revealed that Vijay Mallya and associated entities diverted loan facilities availed by Kingfisher Airlines Ltd. for their own use. The ED has attached properties of Mr. Mallya, KAL, and associated entities. The agency has restored properties amounting to ₹14,132 crore to the SBI, creating the asset pool from which the present restitution has been facilitated.

News Article:

Kingfisher Airlines Employees to Receive ₹311 Crore in Long-Overdue Dues

New Delhi, December 18, 2025 – Former employees of the defunct Kingfisher Airlines Limited (KAL) are finally set to receive ₹311.67 crore in long-overdue dues, thanks to the efforts of the Enforcement Directorate (ED).

The ED announced on Thursday that it had facilitated the restitution of the funds following an order from the Debts Recovery Tribunal (DRT) in Chennai. The order directed the release of funds realized from the sale of attached KAL shares, which the ED had previously restituted to the State Bank of India (SBI).

The case stems from an ED investigation into alleged bank fraud and criminal conspiracy involving KAL, businessman Vijay Mallya, and associated entities. 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 ED has identified and provisionally attached properties and assets of Mr. Mallya, KAL, and associated entities. Mr. Mallya was declared a wanted person under the Fugitive Economic Offences Act on January 5, 2019. 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.

The disbursed funds will be managed by the Official Liquidator and distributed to the former Kingfisher Airlines employees, bringing some closure to a long and painful chapter for the airline’s workforce. The ED coordinated with all stakeholders to ensure settlement of the long-pending workmen dues.

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