The Enforcement Directorate (ED) has restored more than Rs. 300 Cr for the benefit of Kingfisher Airlines’ former employees as a step towards resolving the long-standing financial claims by them.
According to the central agency, the restitution follows a December 12 order from the Debts Recovery Tribunal (DRT) in Chennai, which directed the release of funds that were realised from the sale of shares previously attached during the course of the investigation. These funds had earlier been restituted to the State Bank of India (SBI) under the Prevention of Money Laundering Act (PMLA) as part of the probe into the airline’s financial irregularities.
According to an Economic Times report, the amount will be transferred to the official liquidator, who will oversee disbursement to the airline’s former workers.
Once promoted by business tycoon Vijay Mallya, Kingfisher Airlines was booked by the ED under the PMLA in connection with alleged bank loan fraud, alongside other entities and individuals linked to the case.
The restitution demonstrates ongoing efforts by enforcement authorities to use attached and recovered assets to settle claims against companies involved in financial offences, with priority given to workmen’s dues in this instance.
