After years of litigation, the ED has facilitated Rs 311.67 crore for former Kingfisher Airlines employees, following a DRT order releasing funds from attached assets earlier restituted to SBI under PMLA.
After years of court battles, the Directorate of Enforcement has finally set aside Rs 311.67 crore for former employees of Kingfisher Airlines Ltd (KAL). The restitution follows a December 12, 2025 order by the recovery officer of Debts Recovery Tribunal (DRT)-I, Chennai, which directed the release of funds realised from the sale of attached shares earlier restituted to State Bank of India (SBI) by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA).
In a statement issued on Thursday, the ED said its investigation revealed that large portions of loan facilities availed by Kingfisher Airlines were diverted to service existing debts with other banks and lenders, settle documentary bills discounted by Bank of Baroda, and remit significant sums abroad under the pretext of lease rentals and purchase of aircraft parts.
“During the course of investigation, ED identified and provisionally attached properties and assets of Vijay Mallya, KAL and associated entities aggregating Rs 5,042 crore under Section 5(1) of the PMLA, in addition to attachment of properties worth Rs 1,694.52 crore under Section 83 of the CrPC,” the statement said.