New Delhi, July 4 -- Air India on Friday denied allegations of coercing families of victims of the AI-171 accident into signing documents about their financial dependency on the deceased to reduce compensation payouts.

In a detailed statement, the airline called the claims "unsubstantiated and inaccurate."

The controversy surfaced following reports that some of the bereaved families were being compelled to disclose financial ties to their deceased loved ones--allegedly as a prerequisite for receiving compensation.

However, the airlines clarified that the request for such information was a part of a standard process to ensure that interim compensation reached the rightful beneficiaries promptly.

In an official statement, the airlines s...