ED facilitates ₹312 crore payout to Kingfisher Airlines employees

Economic Times
Economic Times
24h ago
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ED released ₹311.67 crore for Kingfisher Airlines employees' dues after a court order, linked to bank fraud investigations involving Vijay Mallya.
ED facilitates ₹312 crore payout to Kingfisher Airlines employees
A What happened
The Enforcement Directorate enabled payout of ₹311.67 crore towards long-pending dues of Kingfisher Airlines employees. This followed a December 12, 2025, Debts Recovery Tribunal order to release funds from the sale of shares earlier restituted to SBI under the Prevention of Money Laundering Act. The ED's probe, triggered by CBI FIRs, found loan diversion by Kingfisher Airlines to service other debts and remit funds abroad. Assets worth over ₹5,000 crore were attached, and prosecution complaints filed against Vijay Mallya. He was declared a Fugitive Economic Offender in 2019.
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Key insights

  • 1

    Enforcement mechanisms and asset attachments support restitution to victims: The ED's attachment of assets and subsequent fund release reflects a growing reliance on legal and financial tools to address corporate fraud and protect creditor and employee rights in complex bankruptcy cases.

  • 2

    Corporate loan diversion can trigger extended legal and financial repercussions: Kingfisher Airlines’ diversion of loans to service other debts exemplifies how mismanagement can lead to multi-agency investigations, significant asset seizures, and long-term legal consequences for promoters.

Takeaways

The ED’s role in facilitating this payout shows the importance of enforcement and legal frameworks in addressing corporate fraud and safeguarding employee dues.

Topics

World & Politics Policy & Regulation