19 December,2025 06:31 PM IST | Mumbai | Anish Patil
Representational Image. File Pic
The Enforcement Directorate (ED), Mumbai Zonal Office, on Friday facilitated the restitution of Rs 311.67 crore towards long-pending workmen dues of the Kingfisher Airlines Limited (KAL). This marks a significant step in victim-centric restoration of proceeds of crime under the Prevention of Money Laundering Act (PMLA), 2002.
The restitution has been enabled pursuant to an order dated December 12, 2025, passed by the Recovery Officer of the Debts Recovery Tribunal (DRT)-I, Chennai.
The order by the DRT directed the release of funds realised from the sale of attached shares, which had earlier been restituted to the State Bank of India (SBI) by the ED under PMLA provisions.
As per the orders, the amount will now be transferred to the Official Liquidator for disbursement to former employees of Kingfisher Airlines.
Earlier the ED had initiated its investigation based on multiple FIRs registered by the Central Bureau of Investigation (CBI) against Kingfisher Airlines, its promoter Vijay Mallya, and associated entities for offences relating to bank fraud and criminal conspiracy - scheduled offences under the PMLA.
The probe, however, revealed large-scale diversion and syphoning of loan funds, leading to the attachment of movable and immovable properties belonging to KAL, Vijay Mallya, United Breweries Holdings Ltd, and other associated entities.
Following that, Vijay Mallya was declared a Fugitive Economic Offender under the Fugitive Economic Offenders Act, 2018, on January 5, 2019.
Furthermore, the ED has, to date, restituted properties and assets worth Rs 14,132 crore to SBI under Section 8(8) of the PMLA, creating an asset pool from which the present restitution has been facilitated.
Moreover, in furtherance of its mandate, the ED proactively coordinated with all stakeholders to ensure settlement of the long-pending workmen dues. The agency engaged with senior SBI officials and facilitated the utilisation of PMLA-restituted assets for payment of employee claims.
Acting on this facilitation, SBI approached the DRT, offering the restituted assets for discharge of workmen dues and expressly consenting to the priority of such dues over secured creditor claims.
This led to the DRT directing the Official Liquidator to disburse workmen dues amounting to Rs 311.67 crore to former employees of Kingfisher Airlines.
Moreover, the restitution underscores the ED's continued commitment to depriving economic offenders of the proceeds of crime while ensuring restoration of such proceeds to rightful stakeholders, including affected employees.
