Kingfisher Airlines Employees To Get ₹311.67 Crore Long-pending Dues as ED Enables Settlement

Moneylife Digital Team 19 December 2025

Economy & Nation

The directorate of enforcement (ED) has facilitated the restitution of ₹311.67 crore towards long-pending workmen dues of the defunct Kingfisher Airlines Ltd, marking a significant step in the restoration of proceeds of crime to affected stakeholders under the Prevention of Money Laundering Act (PMLA), 2002.

The restitution was enabled following an order dated 12 December 2025, passed by the recovery officer of the debts recovery tribunal (DRT)-I, Chennai, which directed the release of funds realised from the sale of attached shares. These shares had earlier been restituted to State Bank of India (SBI) by ED under the provisions of PMLA. As per the order, the amount will be transferred to the official liquidator for disbursement to former employees of Kingfisher Airlines.

ED had initiated its investigation based on multiple first information reports (FIRs) registered by central bureau of investigation (CBI) against Kingfisher Airlines, its promoter Vijay Mallya and associated entities for offences related to bank fraud and criminal conspiracy, which are scheduled offences under the PMLA.

ED probe revealed large-scale diversion and siphoning of loan funds, leading to the attachment of movable and immovable properties belonging to Kingfisher Airlines, Mr Mallya, United Breweries Holdings Ltd and other linked entities.

Mr Mallya was declared a fugitive economic offender under the Fugitive Economic Offences Act, 2018, on 5 January 2019. ED says it has so far restituted assets and properties worth ₹14,132 crore to SBI under Section 8(8) of the PMLA, creating the asset pool from which the present restitution towards employee dues has been facilitated.

According to ED, it proactively coordinated with multiple stakeholders to ensure settlement of the long-pending workmen dues. The agency engaged with senior officials of SBI and facilitated the use of PMLA-restituted assets for payment of employee claims. Acting on this facilitation, SBI approached DRT by filing interlocutory application no1 of 2025, offering the restituted assets for discharge of workmen dues and explicitly consenting to the priority of such dues over secured creditor claims.

This led to DRT directing the official liquidator to disburse workmen dues amounting to ₹311.67 crore to former employees of Kingfisher Airlines. ED says the restitution reflects its continued commitment to depriving economic offenders of the proceeds of crime, while ensuring that such proceeds are restored to rightful stakeholders, including affected employees.

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