ED enables ₹312 cr payout to Kingfisher Airlines staff

Core Viewpoint - The Directorate of Enforcement (ED) has facilitated the restitution of ₹311.67 crore to former employees of Kingfisher Airlines Ltd (KAL) following a court order, highlighting ongoing legal and financial issues related to the airline and its promoter Vijay Mallya [7]. Group 1: Investigation and Legal Proceedings - The ED initiated its investigation based on multiple Enforcement Case Information Reports (ECIRs) filed by the Central Bureau of Investigation (CBI) against KAL and its promoter Vijay Mallya for bank fraud and criminal conspiracy [7]. - The investigation revealed that significant portions of loan facilities obtained by KAL were misappropriated for servicing debts with other banks, settling bills with Bank of Baroda, and transferring funds abroad under the guise of lease rentals and aircraft parts purchases [7]. - The ED provisionally attached properties and assets of Vijay Mallya, KAL, and associated entities totaling ₹5,042 crore under Section 5(1) of the Prevention of Money Laundering Act (PMLA), along with an additional ₹1,694.52 crore under Section 83 of the Criminal Procedure Code (CrPC) [5][7]. Group 2: Outcomes and Implications - Based on the findings from the investigation, the ED filed prosecution complaints against Vijay Mallya, KAL, and associated entities under the PMLA, leading to Mallya being declared a Fugitive Economic Offender in January 2019 [6][7]. - The restitution of ₹311.67 crore will be transferred to the official liquidator for distribution to former employees, indicating a step towards addressing the financial claims of those affected by the airline's collapse [7].