Kingfisher Airlines Former Employees to Get ₹312 Crore After Decade-Long Wait

Former employees of the long-defunct Kingfisher Airlines have finally received ₹312 crore in unpaid dues nearly 12 years after the airline ceased operations, as per The Times of India report.  

This payout came through asset recoveries approved by the Debt Recovery Tribunal (DRT) following the liquidation of properties connected to Vijay Mallya and the airline. 

₹312 Crore Payout Cleared for Ex-Employees After Asset Sale 

The Enforcement Directorate (ED) released ₹312 crore to the official liquidator for disbursement to ex-employees of Kingfisher Airlines. The payment follows approval from the DRT in Chennai, which permitted the recovered funds to be prioritised for employee settlements over bank creditors. 

This marks a significant development for thousands of airline staff who had remained unpaid since the company shut its doors in 2012. The liquidation arose from assets seized under investigations related to the Prevention of Money Laundering Act (PMLA). 

Recovery Through Attached Assets of Over ₹5,000 Crore 

The ED had identified assets linked to Vijay Mallya, Kingfisher Airlines and related entities worth over ₹5,000 crore.  

As per report, Properties cumulatively valued at ₹14,132 crore were eventually recovered and liquidated via the DRT and a bank consortium led by the State Bank of India (SBI). 

The recovery process enabled settlement of not just bank dues but also surplus funds for employee compensation, which had earlier remained unresolved due to lengthy legal procedures. 

Read More: IndiGo to Start ₹10,000 Compensation Payouts from December 26 After Mass Flight Cancellations! 

Employee Claims Prioritised over Secured Creditors 

The SBI filed an interlocutory application before the tribunal, supporting employee claims taking precedence over those of secured creditors. This coordination among stakeholders, including the ED and SBI, enabled the payout to proceed smoothly through the official liquidator’s office. 

Workmen were owed salaries, provident fund dues, and other statutory benefits for years. Many faced significant financial distress due to the long legal wait and the absence of closure over past compensation. 

Conclusion 

The disbursal of ₹312 crore to Kingfisher Airlines' former employees brings closure to a 12-year-long financial struggle. The recovery and liquidation of attached assets enabled this payout, offering long-awaited relief to affected workers. 

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