Tata Sons Allocates ₹500 Crore for Air India Crash Victims’ Trust
| 2025-06-28
Tata Sons chairman N Chandrasekaran, in the first board meeting after the Air India plane AI171 crash
Tata Sons plans a ₹500 crore trust to support families affected by the Air India crash in Ahmedabad, providing long-term aid and compensation.
Tata Sons, the principal holding company of India’s Tata Group, has announced plans to establish a trust with a proposed outlay of ₹500 crore (approximately $60 million) to aid families affected by the recent Air India plane crash in Ahmedabad. The initiative, presented by Tata Sons Chairman N Chandrasekaran at an interim board meeting, marks one of the country’s most substantial corporate-led relief efforts following an aviation disaster.
The planned trust is intended to deliver both immediate and long-term support to the relatives of the 271 people who died when Air India flight AI171, bound for London, crashed shortly after departing Sardar Vallabhbhai Patel International Airport on 12 June. According to individuals familiar with the deliberations, the trust will assist Indian and foreign nationals alike, including British passengers who were among the deceased.
A person with direct knowledge of the discussions said the fund will be used for compensation payments, medical care, and reconstruction of a nearby medical college campus damaged by the aircraft’s debris. “The remaining portion of the corpus will address the continuing needs of the bereaved families,” the individual added.
The effort will be led by PB Balaji, Group Chief Financial Officer of Tata Motors, who is overseeing the design and implementation of the relief framework. Balaji, known for his background in regulatory compliance and governance, is expected to ensure the trust operates transparently and within the law.
The initiative echoes the Tata Group’s response to the 2008 Mumbai attacks, when it established a trust to assist employees and families impacted by the siege at the Taj Mahal Palace Hotel. In this case, the proposed fund will go beyond one-time ex-gratia payments by covering expenses such as children’s education, daily living costs, and health care over an extended period.
Sources indicated that Tata Trusts—the charitable entity holding a majority stake in Tata Sons—may contribute to the corpus. The board meeting where the proposal was presented was attended by Tata Trust nominees Noel Tata, Venu Srinivasan, and Vijay Singh, who offered their condolences to the victims’ families.
Legal and governance challenges are expected as the trust begins operations. Air India, which Tata Sons reacquired from the Indian government in January 2022, has already pledged ₹1 crore in compensation for each bereaved family. However, claims processes and eligibility for additional support are still being finalised. “There are considerable legal complexities related to compensation and liability,” one source noted.
The crash has cast a shadow over Air India’s transformation plans, which include a five-year overhaul of operations and finances. In the past year, Tata Sons and its partner Singapore Airlines have infused more than ₹9,500 crore into the carrier as part of this restructuring effort. Following the merger of Vistara with Air India in November 2024, Singapore Airlines acquired a 25.1% stake in the airline.
In March 2025, Tata Sons invested over ₹3,200 crore to bolster Air India’s finances. Chandrasekaran has also assumed a more active role in daily management of the airline amid challenges ranging from safety compliance to customer service.
In the aftermath of the accident, Indian civil aviation authorities have commenced an inquiry to determine the cause of the crash. The investigation is expected to examine technical factors, flight operations, and potential systemic failures.
PB Balaji has been tasked with ensuring that the trust is sensitive to the diverse legal and cultural contexts of those affected. According to people briefed on the plans, the trust will include board members from outside the Tata Group to reinforce independent oversight and accountability. Tata Sons has not publicly commented on the details of the proposal.
The trust is expected to be formally registered in the coming weeks, pending final approvals. For many of the affected families, it may offer crucial financial support and a measure of stability in the wake of an unprecedented loss.
Context:
The Air India crash on 12 June has been described as one of India’s deadliest aviation disasters in recent decades. The Boeing Dreamliner fell moments after take-off, igniting a fire that destroyed nearby structures and caused extensive damage on the ground. The tragedy comes at a sensitive time for Air India, which has been seeking to restore its reputation as a world-class carrier after decades of financial difficulties and operational challenges. The Tata Group’s commitment to a dedicated support fund underscores both the scale of the crisis and the company’s efforts to demonstrate responsibility towards affected communities.
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