A long awaited relief is finally in sight for former employees of Kingfisher Airlines after a key legal order cleared the release of pending payments.
The Enforcement Directorate has enabled the restitution of ₹311.67 crore towards unpaid workmen dues of Kingfisher Airlines Limited, a senior agency official confirmed on Thursday, December 18, 2025. The payment follows directions issued by the Debt Recovery Tribunal.
The tribunal ordered the release of funds generated from the sale of attached shares that were earlier restored by the Enforcement Directorate to State Bank of India. Importantly, the tribunal expressly allowed employee dues to take priority over the claims of secured creditors.
The funds are meant to settle long pending payments owed to Kingfisher Airlines employees, many of whom have waited for years following the airline’s collapse. The order marks a significant step in addressing employee claims linked to the grounded carrier.
According to officials, the Enforcement Directorate played a key role in facilitating the restitution process, ensuring that the funds could be routed towards employee dues as directed by the tribunal. The decision reinforces the legal position that workmen dues can be prioritised even when secured creditor claims exist.
Kingfisher Airlines Limited ceased operations years ago, leaving employees without salaries and statutory benefits. Multiple legal proceedings have since followed, involving asset attachment, recovery actions, and creditor claims.
With the tribunal’s direction now in place, the release of ₹311.67 crore is expected to bring partial closure to one of the most prolonged employee compensation cases in the Indian aviation sector.
The development highlights the role of recovery mechanisms and enforcement agencies in resolving legacy disputes linked to failed corporations, particularly where employee interests are involved.
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