ED Restores ₹300 Crore to Kingfisher’s Former Employees

On December 18, the ED announced the restitution of ₹311.67 crore to Kingfisher Airlines’ former staff. The amount was recovered from the sale of shares attached under the Prevention of Money Laundering Act (PMLA). Following a directive from the Chennai Debt Recovery Tribunal, the funds were transferred to the official liquidator for distribution among employees. Kingfisher Airlines, promoted by Vijay Mallya, collapsed in 2012 after loan defaults and unpaid salaries, leaving thousands of workers in financial distress. Mallya was declared a fugitive economic offender in 2019, and this restitution represents one of the largest recoveries for affected employees in recent years.  

Key highlights  
• ₹311.67 crore restored to Kingfisher’s ex-employees after tribunal order  
• Funds sourced from sale of attached shares under PMLA investigation  
• Official liquidator to oversee disbursement among staff  
• Kingfisher Airlines collapsed in 2012 amid loan defaults and unpaid dues  
• Vijay Mallya declared fugitive economic offender in 2019  

Impact  
This restitution provides long-awaited financial relief to former employees, reinforcing confidence in regulatory mechanisms and accountability in high-profile corporate fraud cases.  

Sources: Livemint, Moneycontrol, Times of India, Rediff