Air India Ahmedabad crash: Tata Sons to establish ₹500 crore trust for victims’ families
Air India Ahmedabad crash: Tata Sons to establish ₹500 crore trust for victims’ families
In a significant step towards providing long-term relief and support to those affected by the tragic crash of Air India Flight 171, Tata Sons is moving ahead with plans to set up a public charitable trust. The initiative, internally dubbed the “AI171 Trust,” is aimed at extending financial, emotional, and infrastructural support to the families of the 271 individuals who lost their lives in the June 12 crash in Ahmedabad.
The proposal, which received attention during an unscheduled board meeting held on Thursday, includes a ₹500-crore outlay from Tata Sons, the principal holding company of the $400-billion Tata Group. Sources close to the development revealed that the fund will not only address immediate compensation needs but will also cater to long-term requirements such as healthcare, children’s education, and day-to-day living expenses of the bereaved families.
Initially, the Tata Group considered setting up two separate trusts to differentiate between Indian and foreign nationals impacted by the incident. However, the revised structure now proposes a unified trust supporting all victims equally, including several British citizens who were among the passengers. The trust will also focus on restoring parts of a local medical college damaged in the crash, where smouldering wreckage destroyed several key facilities.
The initiative is being spearheaded by PB Balaji, Group CFO of Tata Motors, known for his robust background in corporate governance and compliance. He is overseeing the formation and regulatory framework of the trust to ensure transparency, legality, and sensitivity toward the cultural and legal needs of the affected families. The trust will be structured to go far beyond one-time ex-gratia compensation, setting a precedent for sustained and dignified care.
To bolster governance, the trust’s board will include external members beyond the Tata Group ecosystem. This move is intended to reinforce transparency and build public confidence in the trust’s operations. Tata Trusts—the largest shareholder of Tata Sons—is also expected to match Tata Sons’ ₹500-crore commitment, potentially doubling the total relief corpus to ₹1,000 crore.
The Tata Sons board’s approval of the trust follows a site visit by director and Tata Trusts chairman Noel Tata, who met with survivors and inspected the damage firsthand. The crash, which involved 241 passengers and claimed additional lives on the ground, marks the deadliest aviation disaster India has seen in over a decade. Legal proceedings are underway, with compensation claims potentially reaching $475 million, including $350 million in liability for foreign nationals.
Air India, which is now majority-owned by Tata Sons with a 74% stake, had earlier announced an interim financial assistance of ₹1.25 crore for the families of those who perished. Singapore Airlines holds about 25% of the carrier, with the remaining 1% under an employee trust. Tata Sons chairman N Chandrasekaran—who also leads Air India—is expected to head the AI171 Trust and has been personally involved in coordinating safety assessments and interactions with government authorities since the tragedy.
This move echoes the Tata Group’s compassionate response to the 26/11 Mumbai terror attacks, when the Taj Public Service Welfare Trust was created to support victims and employees of the Taj Mahal Palace Hotel. That trust later expanded its mission to include support for soldiers, healthcare professionals, and frontline workers during the COVID-19 crisis.
