In a significant development for former employees of the defunct Kingfisher Airlines, the Enforcement Directorate (ED) has released ₹312 crore towards long-pending dues. The funds, which were recovered from assets linked to fugitive businessman Vijay Mallya, were transferred to the official liquidator following an order from the Chennai Debt Recovery Tribunal (DRT).
Vijay Mallya, currently residing in London, was recently seen celebrating his birthday, drawing attention to the stark contrast between his personal celebrations and the long-standing claims of the airline’s former staff.
The DRT had authorized the release of proceeds from the sale of shares previously returned by the ED to SBI, ensuring that employees finally received their dues.
Mallya, the former Kingfisher Airlines founder, had been facing charges of loan fraud filed by the CBI before fleeing to London. The ED had also initiated a money laundering case against him and Kingfisher Airlines Limited under the Prevention of Money Laundering Act (PMLA). In January 2019, he was declared a fugitive economic offender. Over the years, the ED attached assets worth ₹5,042 crore and properties worth ₹1,695 crore linked to Mallya and his companies.
Later, a special PMLA court allowed the sale of these attached properties through SBI-led consortium banks, generating ₹14,132 crore. A senior official stated, “The ED coordinated with all concerned parties to ensure that the long-pending dues of employees were cleared. Discussions with senior SBI officials ensured that the recovered assets facilitated the payments.”
This marks a long-awaited resolution for the employees, bringing closure to years of financial uncertainty while the businessman remains abroad.
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