ED returns ₹300 crore to clear unpaid dues of Kingfisher's employees

The Enforcement Directorate (ED) on Thursday said that it has returned more than ₹300 crore to help pay long-pending dues of former employees of the now-closed Kingfisher Airlines, according to a report by PTI.

 

The development came after the Debts Recovery Tribunal (DRT) in Chennai passed an order on December 12. The order allowed the release of money earned from selling shares that had earlier been seized by the ED and later returned to the State Bank of India under the money-laundering law.

Paying workers' dues top priority

A total amount of ₹311.67 crore will be sent to the official liquidator, which will then be distributed to former Kingfisher Airlines employees to clear their unpaid salaries and dues.

 

 

The ED said it worked closely with all parties, including SBI, to make sure workers’ dues were finally paid. SBI approached the DRT and agreed that employee payments should be given priority over other creditor claims.

 

Earlier, the Enforcement Directorate had returned properties worth ₹14,132 crore to the State Bank of India. These assets were seized during the investigation and later given back to help victims of financial crimes, including banks.

Kingfisher Airlines fraud case

The airline was promoted by fugitive businessman Vijay Mallya. The ED had registered a case against Kingfisher Airlines, Mallya, and others for alleged bank loan fraud under the Prevention of Money Laundering Act (PMLA). In 2019, a Mumbai court declared Mallya a fugitive economic offender under the Fugitive Economic Offenders Act.

Where is Vijay Mallya now?

According to media reports, Mallya is currently residing in London after he fled India in 2016, shortly after Kingfisher's collapse. Mallya, who is wanted by Indian authorities on charges of fraud and money laundering in connection with bank loans worth over ₹9,000 crore, continues to fight extradition to India.

 

Mallya on Thursday attended his pre-birthday party hosted by fugitive businessman Lalit Modi. In an X post, Modi wrote, "An amazing celebration for my dear friend @TheVijayMallya at my house last night for all his friends and family who flew in from all corners of the world. Another cornerstone achieved by the King of Goodtimes - his 70th birthday. Wish him all the happiness and success."