Mumbai: Tata Sons, the holding company of the $400-billion Tata Group, has sought board approvals to set up a trust that will extend financial support to the families of the victims of the June 12 Air India crash in Ahmedabad. At an interim board meeting Thursday, chairman N Chandrasekaran apprised the board of the proposed trust structure, multiple sources told ET.
Approvals have been sought for an estimated Rs 500-crore allocation to the entity, said one of the sources cited above. The holding company of the Tata Group had earlier considered setting up two separate trusts - one for families of Indian citizens and the other for foreign nationals who died in the crash of the London-bound flight.
According to sources, the funds will be used for compensation payouts to the families of the 271 victims, medical care, and renovation of the affected medical school, where several facilities were gutted by the smouldering fuselage of the ill-fated aircraft that fell from the skies moments after take-off.
The rest of the corpus will be earmarked for the long-term needs of the affected families.
The trust, which is expected to be registered soon, will support both Indian citizens and foreign nationals, including several British passengers on board the flight.
The initiative is being led by PB Balaji, group CFO of Tata Motors, who brings extensive experience in regulatory, financial, and corporate governance matters.
Governance & Compliance
According to sources, the funds will be used for compensation payouts to the families of the 271 victims, medical care, and renovation of the affected medical school, where several facilities were gutted by the smouldering fuselage of the ill-fated aircraft that fell from the skies moments after take-off.
The rest of the corpus will be earmarked for the long-term needs of the affected families.
The trust, which is expected to be registered soon, will support both Indian citizens and foreign nationals, including several British passengers on board the flight.
The initiative is being led by PB Balaji, group CFO of Tata Motors, who brings extensive experience in regulatory, financial, and corporate governance matters.
The trust will also include individuals from outside the Tata Group to ensure robust governance and compliance, sources said.
Tata Trusts is also likely to contribute to the fund. The board meeting was attended by Tata Trust nominees Noel Tata, Venu Srinivasan, and Vijay Singh.
There are significant legal complexities related to claims from the crash, sources added. Tata Sons did not comment.
PB Balaji is overseeing the framework and implementation of the trusts to ensure they remain compliant, transparent, and sensitive to the specific legal and cultural contexts of the affected families. The trust will be structured to provide sustained financial support to immediate family members, covering essentials such as children’s education, healthcare, and daily living expenses. This goes beyond a one-time ex-gratia payment.
The approach echoes the Tata Group’s response to the 26/11 Mumbai terror attacks in 2008, when a trust was set up to offer long-term financial and emotional support to employees and their families of the Taj Mahal Palace Hotel, operated by the Tata-owned Indian Hotels Company Ltd.
Approvals have been sought for an estimated Rs 500-crore allocation to the entity, said one of the sources cited above. The holding company of the Tata Group had earlier considered setting up two separate trusts - one for families of Indian citizens and the other for foreign nationals who died in the crash of the London-bound flight.
According to sources, the funds will be used for compensation payouts to the families of the 271 victims, medical care, and renovation of the affected medical school, where several facilities were gutted by the smouldering fuselage of the ill-fated aircraft that fell from the skies moments after take-off.
The rest of the corpus will be earmarked for the long-term needs of the affected families.
The trust, which is expected to be registered soon, will support both Indian citizens and foreign nationals, including several British passengers on board the flight.
The initiative is being led by PB Balaji, group CFO of Tata Motors, who brings extensive experience in regulatory, financial, and corporate governance matters.
Governance & Compliance
According to sources, the funds will be used for compensation payouts to the families of the 271 victims, medical care, and renovation of the affected medical school, where several facilities were gutted by the smouldering fuselage of the ill-fated aircraft that fell from the skies moments after take-off.
The rest of the corpus will be earmarked for the long-term needs of the affected families.
The trust, which is expected to be registered soon, will support both Indian citizens and foreign nationals, including several British passengers on board the flight.
The initiative is being led by PB Balaji, group CFO of Tata Motors, who brings extensive experience in regulatory, financial, and corporate governance matters.
The trust will also include individuals from outside the Tata Group to ensure robust governance and compliance, sources said.
Tata Trusts is also likely to contribute to the fund. The board meeting was attended by Tata Trust nominees Noel Tata, Venu Srinivasan, and Vijay Singh.
There are significant legal complexities related to claims from the crash, sources added. Tata Sons did not comment.
PB Balaji is overseeing the framework and implementation of the trusts to ensure they remain compliant, transparent, and sensitive to the specific legal and cultural contexts of the affected families. The trust will be structured to provide sustained financial support to immediate family members, covering essentials such as children’s education, healthcare, and daily living expenses. This goes beyond a one-time ex-gratia payment.
The approach echoes the Tata Group’s response to the 26/11 Mumbai terror attacks in 2008, when a trust was set up to offer long-term financial and emotional support to employees and their families of the Taj Mahal Palace Hotel, operated by the Tata-owned Indian Hotels Company Ltd.
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