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ED facilitates restitution of over Rs 311 cr for ex-Kingfisher staff

The move reaffirms the agency’s focus on ensuring victim-centric restoration of assets under the Prevention of Money Laundering Act (PMLA), 2002.

2 min readNew DelhiDec 18, 2025 09:09 PM IST

The Enforcement Directorate's Bengaluru zone attached Rs 4.94 crore’s worth of assets of the other accused in the money laundering case in August (File Photo)

In a significant development aimed at addressing long-pending dues of former Kingfisher Airlines employees, the Enforcement Directorate (ED) Thursday said they have facilitated the restitution of Rs 311.67 crore towards workmen dues of the now defunct airlines.

The move reaffirms the agency’s focus on ensuring victim-centric restoration of assets under the Prevention of Money Laundering Act (PMLA), 2002.

“The restitution follows an order dated December 12, 2025, by the Recovery Officer of the Debts Recovery Tribunal-I (DRT), Chennai, directing release of funds realised from the sale of attached shares. These shares had earlier been restituted by the ED to State Bank of India under provisions of the PMLA. The amount will now be transferred to the Official Liquidator for disbursement to former employees of Kingfisher Airlines,” a ED spokesperson said.

According to the central agency, the investigation into the Kingfisher Airlines case began with multiple ECIRs based on FIRs filed by the CBI against the airline, liquor baron and its promoter Vijay Mallya, and associated entities for alleged bank fraud and criminal conspiracy, offences classified as “scheduled offences” under the PMLA.

“Probe has revealed that large portions of loans availed by the airline were diverted for purposes other than those intended, including repayment of older debts, settlement of discounted bills, and remittance of funds abroad under the guise of lease rentals and aircraft part purchases. In total, ED has provisionally attached assets worth Rs 5,042 crore under the PMLA and additional properties worth Rs 1,694.52 crore under the Section of CrPC,” the spokesperson said.

Following applications by the SBI-led banking consortium under Section 8(8) of PMLA, a Special Court permitted the restitution of attached properties through the Recovery Officer of DRT, Bengaluru. The ED subsequently restituted assets worth Rs 14,132 crore to SBI, forming an asset pool from which the current payment to employees was made possible.

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