**ED Restores Over ₹300 Crore to Former Kingfisher Airlines Employees**
The Enforcement Directorate (ED) announced on December 18 that it has successfully restored funds exceeding ₹300 crore to settle long-standing dues for former employees of the now-defunct Kingfisher Airlines, which was founded by the fugitive liquor baron Vijay Mallya. This restitution follows a directive from the Debts Recovery Tribunal (DRT) in Chennai, issued on December 12, which ordered the release of funds obtained from the sale of attached shares previously returned to the State Bank of India (SBI) by the ED under the Prevention of Money Laundering Act (PMLA).
The total amount being transferred is ₹311.67 crore, which will be allocated to the official liquidator for distribution among the former employees of Kingfisher Airlines. The ED had previously initiated action against the airline, Mallya, and others under the PMLA in connection with an alleged bank loan fraud case. In 2019, a special court in Mumbai declared Mallya a fugitive economic offender under the Fugitive Economic Offender Act (FEOA) of 2018.
In a significant move, the ED had earlier returned assets valued at ₹14,132 crore to SBI under Section 8(8) of the PMLA, which permits the restitution of assets to victims of financial crimes, including bank loan fraud. The assets that were attached during the investigation contributed to the current restitution process.
The ED emphasized its proactive approach in coordinating with all relevant parties to ensure the settlement of these long-overdue worker dues. The agency engaged with senior SBI officials to facilitate the use of PMLA-restituted assets for fulfilling employee claims. Following the ED’s intervention, SBI filed an application with the DRT, offering the restituted assets to cover the workmen’s dues and prioritizing these claims over those of secured creditors.
In conclusion, this restitution marks a significant step towards addressing the financial grievances of former Kingfisher Airlines employees, highlighting the ED’s commitment to ensuring justice for victims of financial misconduct.
**FAQ**
**What is the significance of the ED’s restitution to Kingfisher Airlines employees?**
The ED’s restitution of over ₹300 crore is crucial for settling long-standing dues owed to former employees of Kingfisher Airlines, providing them with much-needed financial relief after the airline’s collapse.
