Rs 311.67 Crore Released for Former Kingfisher Airlines Employees After Years of Delay

The Enforcement Directorate (ED) has facilitated the release of ₹311.67 crore for disbursement to former employees of the now-defunct Kingfisher Airlines, providing long-awaited relief to workers whose dues have remained unpaid since the airline shut down operations.
The release follows an order issued on 12 December by the Debts Recovery Tribunal (DRT), Chennai, which directed that funds generated from the sale of attached shares be transferred to the official liquidator for settlement of workmen’s dues. The amount will be distributed among eligible former employees in accordance with the tribunal’s directions.
The funds originate from assets earlier attached by the ED under the Prevention of Money Laundering Act (PMLA) in connection with an alleged bank loan fraud case involving Kingfisher Airlines and its promoters. Previously, assets worth ₹14,132 crore had been restituted to the State Bank of India under provisions of the Act that allow recovery and restitution of proceeds linked to financial offences.
Officials said the ED worked closely with multiple stakeholders, including SBI, to ensure that employee claims were given priority. The tribunal permitted the use of restituted assets to clear workmen’s dues, granting them precedence over claims by secured creditors.
The disbursement marks a significant step towards resolving long-pending claims of former Kingfisher Airlines employees, many of whom have waited for years for their unpaid salaries and benefits. It also represents one of the largest payouts linked to restitution proceedings under India’s money laundering law.

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