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

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