The Enforcement Directorate announced that it had reimbursed over ₹300 crore to former employees of the now-defunct Kingfisher Airlines, which was run by fugitive liquor tycoon Vijay Mallya.

Key Highlights

• ED restitutes ₹311.67 crore to former Kingfisher Airlines employees to settle long-pending dues after airline collapse.
• Funds from sale of attached shares, previously restituted under PMLA, will be disbursed via official liquidator.

According to a statement from the federal probe agency, the restoration was made possible by an order issued on December 12 by the Debts Recovery Tribunal (DRT) in Chennai, which directed the release of funds realized from the sale of attached shares that had previously been returned to State Bank of India by the ED under the Prevention of Money Laundering Act (PMLA).

According to the statement, the sum of ₹311.67 crore would be given to the official liquidator for distribution to former Kingfisher Airlines employees. In an alleged bank loan fraud case, the ED has booked Mallya, the airlines, and other parties under the PMLA.

In 2019, a special Mumbai court designated Mallya as a fugitive economic offender under the Fugitive Economic Offender Act (FEOA) of 2018.

A few years ago, the ED returned properties valued at ₹14,132 crore to SBI in accordance with Section 8(8) of the PMLA, which permits the return of assets to victims of financial crimes, such as bank loan fraud. The assets that the ED had seized as part of its investigation were returned.

Also Read: FM Nirmala Sitharaman: Rs 14,000 Cr Refunded to Banks via Vijay Mallya Asset Sales

According to the agency, an asset pool was established from which the current restitution was made possible. It "proactively" cooperated with all relevant parties to guarantee that the long-overdue worker dues were settled.

The ED encouraged the use of PMLA restituted assets to pay employee claims by interacting with senior SBI officials.

"Acting upon ED's facilitation, SBI approached the DRT by filing an application and offering the restituted assets for discharge of workmen dues and expressly consenting to the priority of such dues over secured creditor claims," claimed the organization.