New Delhi, December 18: The Enforcement Directorate (ED) has taken a significant step under the Prevention of Money Laundering Act (PMLA) to recover ₹311.67 crore dues for the former employees of the bankrupt Kingfisher Airlines Limited (KAL).
This amount was realised through the sale of attached assets and will now be distributed to the employees via the official liquidator.
The recovery was made possible following an order by the Debt Recovery Tribunal (DRT)-I, Chennai, on December 12, 2025. The order directed the release of funds obtained from the sale of attached shares, which ED had earlier returned to the State Bank of India (SBI). ED had launched an investigation based on a CBI First Information Report regarding bank fraud against Vijay Mallya, KAL, and associated companies. The probe revealed that a large portion of the loans taken by the airline was diverted improperly to repay other debts and for foreign payments.
Under PMLA, ED attached assets worth ₹5,042 crore and, under the Criminal Procedure Code, seized additional assets valued at ₹1,694 crore. In total, ED returned assets worth ₹14,132 crore to the SBI-led bank consortium, creating a substantial asset pool. Vijay Mallya was declared a fugitive economic offender in 2019.
Coordinating with SBI and other stakeholders, ED prioritised the payment of dues to employees. SBI filed an application with the DRT, which facilitated the release of the funds for the employees.
Earlier, during the first day of the Winter Session of Parliament, it was informed in the Lok Sabha that 15 individuals, including Vijay Mallya of Kingfisher Airlines, Nirav Modi of Firestar International, and Nitin Sandesara of Sterling Biotech and Sterling SEZ, were declared fugitive economic offenders by October 31 for causing losses exceeding ₹57,000 crore to various banks.
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(Lake City Update)