Debts Recovery Tribunal-I, Chennai, directed release of funds realised from the sale of attached shares which had been earlier restituted to State Bank of India (SBI) by ED under PMLA
FinTech BizNews Service
Mumbai, 2- December 2025: Directorate of Enforcement (ED), Mumbai Zonal Office has facilitated the restitution of Rs311.67 Cr towards long-pending workmen dues of M/s Kingfisher Airlines (KAL), reaffirming its commitment to victim-centric restoration of Proceeds of Crime under the Prevention of Money Laundering Act, 2002.
The restitution has been enabled pursuant to the order dated 12.12.2025 passed by the Recovery Officer, Debts Recovery Tribunal-I, Chennai, directing release of funds realised from the sale of attached shares which had been earlier restituted to State Bank of India (SBI) by ED under PMLA. The amount is to be transferred to the Official Liquidator for disbursement to former employees of Kingfisher Airlines.
ED initiated investigation on the basis of multiple FIRs registered by CBI against KAL, Vijay Mallya and associated entities for bank fraud and criminal conspiracy, which are scheduled offences under PMLA. The investigation revealed large-scale diversion and siphoning of loan funds, leading to attachment of movable and immovable properties of KAL, Vijay Mallya, United Breweries Holdings Ltd. and associated entities. Vijay Mallya was declared Fugitive Economic Offender under Fugitive Economic Offences Act 2018 on 05.01.2019. It is pertinent to mention that ED has restituted properties/assets amounting to Rs. 14,132 Crore to SBI under Section 8(8) of PMLA, thereby creating the asset pool from which the present restitution has been facilitated. In furtherance of its mandate, ED proactively coordinated with all stakeholders to ensure settlement of the long-pending workmen dues. ED engaged with senior officials of SBI and facilitated utilisation of PMLA restituted assets for payment of employee claims. Acting upon ED’s facilitation, SBI approached the DRT by filing Interlocutory Application No. 01/2025, offering the restituted assets for discharge of workmen dues and expressly consenting to the priority of such dues over secured creditor claims. This culminated in the DRT directing Official Liquidator for disbursement of workmen dues amounting to Rs311.67 Crore to former employees of Kingfisher Airlines.
This restitution underscores the ED’s continued commitment to depriving economic offenders of the proceeds of crime while ensuring restoration of such proceeds to rightful stakeholders, including affected employees.
