Families of crash victims allege coerced financial disclosures, but Air India disputes the allegations


Air India has categorically denied accusations that it pressured families of victims from the Air India Flight 171 crash during the interim compensation process. In an exclusive statement to IndiaToday.in, the airline termed the allegations as “unsubstantiated and inaccurate.” It clarified that the questionnaire circulated among some families was solely to verify familial relationships for proper disbursement of payments, not to exert pressure.

“We are giving families all the time and flexibility they need,” Air India said, emphasizing its commitment to support rather than burden families during a sensitive time. The airline stated that documents could be submitted in person or via email, and no uninvited home visits were made. Additionally, support staff are actively assisting with funeral logistics, accommodation, and other needs.

So far:

  • Interim payments have been issued to 47 families

  • Documentation for 55 more is under processing

  • Tata Group has pledged a voluntary contribution of ₹1 crore per deceased individual

  • A ₹500 crore trust is being created for long-term family assistance

These responses come amid serious allegations from families and legal representatives following the June 12 crash, which killed 260 people — the worst aviation disaster in India in nearly three decades.

Law firm Stewarts, representing over 40 families, has accused the airline of using a legally worded questionnaire without proper explanation, which they argue could affect future compensation claims. The form includes sensitive queries like financial dependency on the deceased, which may influence final payouts.

Peter Neenan, a partner at Stewarts, described the form as misleading and “shocking,” claiming that families were told they risked losing payments if they did not comply. The firm, along with Nanavati & Nanavati and U.S.-based Clifford Law Offices and Kreindler & Kreindler, is preparing legal action against Air India, Boeing, and others.

While Air India insists its intent is to help, the issue is expected to escalate legally, with concerns over whether families are being disadvantaged through premature disclosures. Legal teams have advised clients not to fill out the forms and are preparing to pursue claims through judicial channels.


 

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