The Enforcement Directorate (ED) has facilitated the release of Rs 311.67 crore for disbursement to former employees of the now-defunct Kingfisher Airlines, offering long-awaited relief to workers whose dues have remained unpaid since the airline ceased operations.
The release follows a 12 December order by the Debts Recovery Tribunal (DRT), Chennai, which directed that funds realised 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 line with the tribunal’s directions.
The funds have been sourced from assets earlier attached by the ED under the Prevention of Money Laundering Act (PMLA) in connection with a case related to alleged bank loan fraud involving Kingfisher Airlines and its promoters. Assets worth Rs 14,132 crore had previously 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 coordinated with multiple stakeholders, including SBI, to ensure that employee claims were prioritised. The tribunal approved the use of restituted assets for clearing workmen’s dues, granting them precedence over claims of secured creditors.
The disbursement marks a significant step towards resolving long-pending employee claims that have remained unsettled for years following the airline’s collapse and represents one of the largest payouts linked to restitution proceedings under the money laundering law.