 "People near the debris of the Air India plane that crashed moments after taking off from the airport, in Ahmedabad, Gujarat, India, Thursday, June 12, 2025. The London-bound plane was carrying 242 passengers. (Photo: PTI Photo)")
In yet another move aimed at extending financial support to the families of the victims of the June 12 Air India crash in Ahmedabad, Tata Sons has sought board approval for setting up a trust with an estimated 500 crore ($58.4 million) allocation. Tata Sons is the holding company of the $400 billion Tata Group, which owns Air India.
Tata Sons chairman N Chandrasekaran has already informed the board about the proposal, reported Economic Times, citing multiple sources.
Earlier, Tata Sons proposed setting up two separate trusts, each for Indian nationals and foreigners who died in the plane crash.
How the fund would be used?
The report said that the fund would be used to offer compensation for the victims of the plane crash and renovation of the affected medical college. Several buildings of the B.J. Medical College and Civil Hospital in Ahmedabad sustained severe damage by the smouldering fuselage of the ill-fated aircraft that fell from the skies.
As per the report, the rest of the funds would be used for long-term needs of the affected families.
This initiative is reportedly being led by PB Balaji, group CFO of Tata Motors.
According to the sources cited in report, people from outside the Tata Group would also join the trust to ensure transparency and compliance.
Who is liable to pay compensation?
According to experts, Air India is liable without limit, unless any evidence emerges which shows that the airline was not at fault.
If the airline comes out clean, then Boeing would be liable without limit.
Financial Express quoted UK-based James Healy-Pratt, a lawyer who is assisting the families of the plane crash victims, as saying that the families must not accept any final offer for compensation but take an advanced payment of £17,200 from Air India.
He said that average time for getting compensation is two years and the amount is always more than what the families are offered earlier on.
He also made it clear that Air India had a legal liability to pay £17,200 per passenger as an advance payment within 15 days.