The restitution follows an order dated December 12, 2025, passed by the Recovery Officer, Debts Recovery Tribunal-I (DRT), Chennai, which directed the release of funds realised from the sale of shares that were earlier attached and later restituted to State Bank of India (SBI) by the ED. The amount will now be transferred to the Official Liquidator for distribution among former Kingfisher Airlines employees.

ED Investigation and Asset Attachment

The ED 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 including bank fraud and criminal conspiracy, which are scheduled offences under the PMLA.

The probe revealed large-scale diversion and siphoning of loan funds, leading to the attachment of several movable and immovable properties belonging to Kingfisher Airlines, Vijay Mallya, United Breweries Holdings Ltd., and related entities. Vijay Mallya was subsequently declared a Fugitive Economic Offender on January 5, 2019, under the Fugitive Economic Offenders Act, 2018.

₹14,132 Crore Assets Already Restituted to SBI

According to the ED, assets worth ₹14,132 crore have already been restituted to SBI under Section 8(8) of the PMLA, forming the asset pool from which the present restitution to employees has been made possible.

In a rare move, SBI agreed to accord priority to workmen dues over its own secured creditor claims. Acting upon ED’s facilitation, SBI filed Interlocutory Application No. 01 of 2025 before the DRT, offering the restituted assets for settlement of employee dues. This led to the DRT directing the Official Liquidator to disburse ₹311.67 crore to former employees of Kingfisher Airlines.

Focus on Victim-Centric Recovery

The ED stated that it proactively coordinated with all stakeholders, including senior officials of SBI, to ensure that the long-pending claims of employees were settled. The restitution, the agency said, underscores its commitment not only to depriving economic offenders of proceeds of crime, but also to restoring such proceeds to rightful stakeholders, especially affected workers.

For thousands of former Kingfisher Airlines employees who had been awaiting salary and statutory dues for over a decade, the development marks a long-overdue financial and moral victory.

Also Read: Kingfisher House in Mumbai Sold for Rs 52.25 Crore

The post Kingfisher Airlines Employees to Receive ₹311.67 Crore as ED Facilitates Long-Pending Dues appeared first on Square Feat India.

With this latest transfer, immovable and movable assets collectively valued at approximately ₹310 crore located in Mumbai, Kolkata and Surat have now been handed over to the liquidator of M/s Gitanjali Gems Ltd.

Background: ₹6,097 Crore Banking Fraud

According to the ED investigation under the Prevention of Money Laundering Act (PMLA), Mehul Choksi, along with associates and certain officials of Punjab National Bank (PNB), fraudulently obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit between 2014 and 2017, causing a wrongful loss of ₹6,097.63 crore to PNB.
Choksi also defaulted on additional loans taken from ICICI Bank.

The money laundering probe led to the seizure of valuables and jewellery worth ₹597.75 crore linked to the Gitanjali Group, and the attachment of immovable and movable properties worth ₹1,968.15 crore, including properties in India and abroad, luxury vehicles, bank accounts, shares and factories.

In total, the ED has seized and attached assets worth ₹2,565.90 crore, and has so far filed three prosecution complaints in the case.

ED–Banks Joint Action to Recover Public Funds

To accelerate financial recovery for affected banks, the ED and banks adopted a joint strategy and moved the Special PMLA Court, Mumbai through a Consent Application.
The court permitted the ED to assist banks and liquidators in conducting valuation and auction of attached assets. The court further directed that sale proceeds must be deposited as Fixed Deposits in PNB and ICICI Bank.

The ED stated that other remaining assets will continue to be handed over to liquidators and banks as per court orders.

Significant Progress in Monetisation

This development reinforces the agency’s ongoing efforts to ensure restitution for victims of one of India’s biggest banking frauds. The monetisation of these Borivali properties marks another step forward in asset recovery from fugitives like Mehul Choksi and Nirav Modi, who fled India after the scam came to light.

Also Read: Nirav Modi’s Assets Put On Auction By ED.

The post ED Hands Over Mehul Choksi’s Borivali Homes to Liquidator for Monetisation; Move to Benefit Victim Banks appeared first on Square Feat India.

The attachment was carried out on 17 November 2025 by ED’s Bhopal Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002.

Gifted to Daughter to Hide Ill-Gotten Money

According to the ED, the luxurious Dubai apartments and commercial units — located in Centurion Residence (Dubai Investment Park), Dubai Silicon Oasis, Liwa Heights, Business Bay, and World Trade Centre Residences — were originally acquired by Bhasi using proceeds of crime generated through AOPL and its group entities.

To hide the origin and ownership of these assets, Bhasi gifted the Dubai properties to his daughter in 2022–2023, without any monetary consideration.

The agency says this gifting pattern was a deliberate strategy to distance the assets from the main accused while retaining control through family channels — a typical layering technique in international money laundering cases.

The SBI Fraud: How ₹1,266 Crore Vanished

AOPL, under the strategic control of Bhasi, executed illegal merchanting trade transactions, circular trading, fabrication of documents, and diversion of bank funds, ED stated.

A key part of the fraud involves 12 Foreign Letters of Credit (FLCs) worth USD 200 million (approx. ₹1,266.63 crore) issued by SBI’s Shahpura Branch between April and May 2018.

These FLCs devolved on the bank after AOPL failed to meet required margins and defaulted at the time of LC rollovers.
As a result, SBI was forced to make payments to overseas suppliers, triggering massive losses for the public-sector bank.

Layering Through a Global Network

ED investigators uncovered a complex web of domestic and foreign entities used to layer illicit funds before they were routed into high-value assets abroad.

The nine Dubai properties form only a segment of the suspected illegal wealth trail. More attachments and arrests may follow as the investigation deepens.

Further Investigation Underway

ED has confirmed that the probe is still in progress, with more leads emerging regarding fund diversion, global money movement, and additional assets held by the accused and their associates.

Also Read: ED arrests OSBPL MD Swaraj Singh Yadav for cheating PMAY homebuyers through fake cancellations

The post SBI Loses ₹1,266 Crore: ED Attaches Dubai Properties Gifted by Fraud Accused to Daughter appeared first on Square Feat India.