Compensation to Victims of Crime in India

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A Comprehensive Analysis of Legal Frameworks, Schemes, and Judicial Perspectives

1. Introduction

The Administration of criminal justice has historically centered on the apprehension, prosecution, and punishment of offenders, often relegating the victim to the periphery of the process.1 Victims, despite being the primary sufferers of crime, were frequently viewed merely as sources of information or evidence, their needs and rights largely overlooked within a system focused on retribution or reformation of the perpetrator.2

This traditional approach, however, has undergone a significant transformation globally and within India, increasingly recognizing the imperative of victim justice, which encompasses not only fair treatment but also restitution and rehabilitation.1 Victim compensation, as a tangible form of redress, has emerged as a critical component of this evolving paradigm, aiming to alleviate the physical, emotional, and financial hardships endured by those impacted by crime.4

The journey towards establishing a robust victim compensation framework in India has been gradual, marked by legislative inertia interspersed with proactive judicial interpretation and responses to societal demands. For decades, victims remained the “forgotten people” in the criminal justice system, their plight largely unaddressed beyond the often nominal fines imposed on convicts.5 International instruments, notably the United Nations Declaration of Basic Principles of Justice for Victims of Crime and Abuse of Power, 1985, provided significant impetus, advocating for state responsibility in ensuring victim rights, including compensation, especially when unavailable from the offender.3 This international normative pressure, coupled with recommendations from domestic bodies like the Law Commission of India and the Malimath Committee on Reforms of Criminal Justice System, and crucially, the expansive interpretation of fundamental rights (particularly Article 21 – Right to Life and Personal Liberty) by the Indian judiciary, paved the way for legislative reforms.1

The evolution towards recognizing and implementing victim compensation rights in India reflects a complex interplay between these forces. Judicial pronouncements, often leveraging constitutional mandates under Article 21, established the groundwork for compensatory jurisprudence even before specific statutory provisions were robustly developed or utilized.1 Subsequent legislative actions, such as the amendments incorporating Sections 357A, 357B, and 357C into the Code of Criminal Procedure, 1973 (CrPC), responded to identified gaps and judicial directives, aiming to create more structured mechanisms for state-funded compensation and victim support.1 However, this progression reveals a pattern of incremental development, often reactive to specific crises or reports, rather than a holistic, proactive legislative design from the outset. This piecemeal evolution, while addressing critical needs over time, potentially contributes to inconsistencies and implementation challenges observed in the current system.1 Furthermore, while the legal definition of a “victim” was formally included in the CrPC 7, and judicial calls for its liberal interpretation exist 7, the practical application and scope of compensation schemes may not always fully encompass the broader spectrum of harm, including the impact on indirect or tertiary victims, as recognized in international principles and victimological studies.7

This report provides a comprehensive analysis of the legal framework governing victim compensation in India, focusing on the pivotal provisions within the Code of Criminal Procedure, 1973. It examines the structure, funding, and operational aspects of the Victim Compensation Schemes (VCS) mandated under Section 357A, including the significant role played by the National Legal Services Authority (NALSA). The analysis delves into the judicial perspective, tracing the evolution of compensatory jurisprudence and interpreting key judgments from the Supreme Court and High Courts. Landmark case laws, such as Rudul Sah v. State of Bihar, Karan v. State NCT of Delhi, and Nipun Saxena v. Union of India, are critically examined to understand their impact on shaping the law and practice of victim compensation. Finally, the report considers related victim support initiatives like One Stop Centres and the Witness Protection Scheme, concluding with a synthesis of findings, identification of persistent challenges, and recommendations for strengthening the victim compensation regime in India. The analysis relies exclusively on authoritative legal sources, government documents, judicial pronouncements, and academic legal commentary as reflected in the provided materials.

2. Statutory Framework: The Code of Criminal Procedure, 1973 (CrPC)

The Code of Criminal Procedure, 1973, provides the primary statutory basis for victim compensation within the criminal justice process. While the concept existed in earlier legislation, the 1973 Code, particularly through subsequent amendments, significantly expanded the scope and mechanisms for awarding compensation.

2.1 Section 357: Order to Pay Compensation

Section 357 CrPC empowers criminal courts to order compensation to victims at the time of passing judgment. It operates through two main pathways:

  1. Compensation out of Fine: When a court imposes a sentence including a fine (or a sentence of death where fine forms a part), it may order the whole or part of the recovered fine to be applied towards 7:
  • Defraying prosecution expenses.29
  • Compensating any person for loss or injury caused by the offense, provided such compensation is recoverable in a Civil Court.7
  • Compensating persons entitled under the Fatal Accidents Act, 1855, for loss resulting from a death caused by the offense.7
  • Compensating a bona fide purchaser of stolen property (in cases of theft, misappropriation, breach of trust, cheating, etc.) when the property is restored to its rightful owner.7
  • Section 357(2) stipulates that if the fine is imposed in an appealable case, the payment shall not be made until the appeal period expires or the appeal is decided.29
  1. Direct Compensation Order: When a court imposes a sentence not including a fine, it may order the convicted person to pay a specified amount as compensation to the person who suffered loss or injury due to the act for which the accused was sentenced.7 This provision, introduced in the 1973 Code (replacing Section 545 of the 1898 Code which limited compensation to the fine amount), significantly broadened the court’s power, allowing compensation irrespective of whether a fine was imposable or imposed.1 The object is explicitly to provide compensation for loss or injury caused by the accused’s act.11

Section 357(4) clarifies that Appellate Courts, High Courts, or Courts of Session exercising revisional powers can also make orders under this section.1 Section 357(5) mandates that any sum paid or recovered as compensation under this section must be taken into account when awarding compensation in any subsequent civil suit concerning the same matter, preventing double recovery.29

Scope and Limitations: Section 357 marked an improvement over the previous law by removing the requirement that compensation be ‘substantial’ and by introducing subsection (3).1 However, its application remains contingent on conviction.1 Furthermore, compensation under Section 357(1) depends on the imposition and recovery of a fine, which can be uncertain.36 Despite its potential, courts historically underutilized this provision, often neglecting to consider victim compensation during sentencing.11 Factors considered by courts when applying Section 357 include the nature and gravity of the offense, the extent of loss or injury (physical or pecuniary), and, crucially, the capacity of the accused to pay.1

State Amendments: Reflecting specific regional concerns, several states introduced amendments to Section 357, often mandating or prioritizing compensation when the victim belongs to Scheduled Castes (SC) or Scheduled Tribes (ST) and the accused does not, unless both belong to these communities.31 States like Andhra Pradesh, Bihar, Goa, Karnataka, Madhya Pradesh, Rajasthan, and Uttar Pradesh enacted such provisions, indicating an early legislative recognition of intersectional vulnerability and the need for targeted protection, predating the more universal framework introduced later by Section 357A.31 This suggests a dual legislative focus evolving over time – addressing specific group vulnerabilities alongside developing general victim rights.

Judicial Interpretation: The judiciary has increasingly emphasized the importance of Section 357. Landmark rulings, notably the Delhi High Court’s decision in Karan v. State NCT of Delhi, interpreted the provision, particularly subsection (3), as imposing a mandatory duty on courts to apply their mind to the question of compensation in every criminal case.11 Courts have advocated for its liberal application to meet the ends of justice and reassure victims that they are not forgotten.11

2.2 Section 357A: Victim Compensation Scheme

Recognizing the limitations of Section 357 and spurred by recommendations from the Law Commission and the Malimath Committee 7, Parliament introduced Section 357A via the Code of Criminal Procedure (Amendment) Act, 2008 (effective December 31, 2009).1 This section marked a significant paradigm shift by establishing a framework for state-funded compensation, moving beyond offender liability and conviction dependency.3

Analysis of Sub-sections (1)-(6):

  • Subsection (1): Mandates every State Government, in coordination with the Central Government, to prepare a scheme for providing funds to compensate victims or their dependents who have suffered loss or injury requiring rehabilitation.3
  • Subsection (2): When a court recommends compensation, the District Legal Services Authority (DLSA) or State Legal Services Authority (SLSA) decides the quantum to be awarded under the state scheme.19
  • Subsection (3): If the trial court finds compensation under Section 357 inadequate for rehabilitation, or if the case ends in acquittal or discharge but the victim needs rehabilitation, it can recommend compensation under the scheme.19
  • Subsection (4): Where the offender is untraced or unidentified, and no trial occurs, the victim or dependents can directly apply to the SLSA or DLSA for compensation.19
  • Subsection (5): Upon receiving a recommendation or application, the SLSA/DLSA must conduct an inquiry and award adequate compensation within two months.19
  • Subsection (6): The SLSA/DLSA can order immediate first-aid, medical benefits (free of cost based on police/magistrate certificate), or other interim relief to alleviate the victim’s suffering.27

Significance: Section 357A fundamentally altered the landscape by establishing state responsibility for victim compensation and rehabilitation, irrespective of the trial’s outcome or the offender’s financial status.1 It created a dedicated mechanism through state schemes and empowered Legal Services Authorities (LSAs) as the key implementing bodies. However, the effectiveness of this section hinges significantly on the proactive engagement of courts in making recommendations and the operational efficiency and resource capacity of the LSAs in processing claims and determining appropriate compensation within the stipulated timeframe. Potential bottlenecks and variations in implementation capacity at both the judicial recommendation stage and the LSA processing stage can impact the actual delivery of relief to victims.

2.3 Section 357B: Compensation in Addition to Fine

Introduced by the Criminal Law (Amendment) Act, 2013 19, and subsequently amended by the Criminal Law (Amendment) Act, 2018 46, Section 357B addresses specific heinous crimes. It mandates that any compensation payable by the State Government under Section 357A must be in addition to any fine imposed under Sections 326A (acid attack), 376AB, 376D, 376DA, and 376DB (various forms of rape) of the Indian Penal Code (IPC) that is payable to the victim.12 This provision underscores the legislative intent to provide enhanced financial support for victims of these particularly egregious offenses, ensuring that state compensation supplements, rather than replaces, any fine directed towards the victim.

2.4 Section 357C: Treatment of Victims

Also inserted by the Criminal Law (Amendment) Act, 2013 19, Section 357C imposes a crucial duty on healthcare providers. It mandates that all hospitals, whether public or private (run by Central Government, State Government, local bodies, or any other person), must provide immediate first-aid or medical treatment, free of cost, to victims of offenses covered under Sections 326A (acid attack) and the 376 series (rape offenses) of the IPC.19 Failure by a hospital authority to comply with this provision is a punishable offense under Section 166B of the IPC.28 This section directly addresses the critical and immediate medical needs of victims of acid attacks and sexual assault, legally obligating hospitals to provide essential care without financial barriers at the point of service.

The sequential introduction of Sections 357A, 357B, and 357C following the long-standing Section 357 illustrates an evolving legislative response to victim needs. This progression, while strengthening the framework, appears largely driven by specific events, judicial pressure, and committee reports, suggesting an incremental rather than a comprehensively planned approach from the outset.

3. Victim Compensation Schemes (VCS) in India

Section 357A CrPC serves as the bedrock for the establishment of Victim Compensation Schemes (VCS) across India, institutionalizing the state’s role in providing financial relief and rehabilitation support to crime victims.

3.1 Establishment and Structure

The core mandate of Section 357A(1) requires every State Government, in coordination with the Central Government, to formulate a specific scheme for compensating victims or their dependents who have suffered loss or injury needing rehabilitation.3 The operationalization of these schemes falls primarily under the purview of the State Legal Services Authorities (SLSAs) and District Legal Services Authorities (DLSAs). These bodies are empowered to determine the quantum of compensation based either on recommendations received from trial courts or upon direct applications from victims or their dependents, particularly in cases where the offender remains untraced or unidentified.12

3.2 Funding Mechanisms

The financial architecture supporting these schemes involves both state and central funding streams:

  • State Victim Compensation Fund: Each state is required to establish a dedicated Victim Compensation Fund under a separate head of account.41 The primary sources for this fund typically include:
  • Annual budgetary allocations made by the State Government.48
  • Fines imposed by courts under Section 357 CrPC and specifically directed to be deposited into this fund.52
  • Amounts recovered from offenders as compensation/restitution.52
  • Donations or contributions from permissible sources.48 The fund is generally operated by the Member Secretary of the SLSA or equivalent authority.48
  • Central Victim Compensation Fund (CVCF): Recognizing the need for central support and greater uniformity, the Ministry of Home Affairs (MHA), Government of India, established the CVCF Scheme.8
  • Objectives: The CVCF aims to support and supplement state VCS, reduce the disparity in compensation amounts awarded for similar crimes across different states/UTs, and encourage states to effectively implement their schemes, particularly for victims of serious crimes like sexual offenses, acid attacks, and human trafficking.47
  • Funding Source: The initial corpus of Rs. 200 crore was allocated from the Nirbhaya Fund, established for women’s safety initiatives.19 Early guidelines contemplated receiving public and corporate contributions 54, but revised guidelines (2016/2017) indicated this was no longer the mechanism.55
  • Administration: The fund is administered by the MHA, initially through an Empowered Committee.54
  • Fund Release Mechanism: The mechanism for fund release from CVCF to states evolved. Initial guidelines suggested recurring matching grants contingent on state spending.54 However, revised guidelines adopted a model of providing a one-time grant to States/UTs.55 Accessing this grant requires states to have notified their own VCS under Section 357A CrPC, and the quantum of compensation specified in their scheme must not be less than the minimum amounts stipulated by the CVCF guidelines (detailed in Table 3.1 below).55 This shift from potential ongoing support to a one-time grant might raise concerns about the long-term financial sustainability of state schemes, potentially increasing the fiscal responsibility on states over time, especially if the initial central grant is exhausted or compensation needs rise.
  • Table 3.1: CVCF Minimum Compensation Amounts
Sl. No.Description of Injury / LossMinimum Amount of Compensation (INR)
1.Acid attack3,00,000
2.Rape3,00,000
3.Physical abuse of minor2,00,000
4.Rehabilitation of victim of Human Trafficking1,00,000
5.Sexual assault (Excluding rape)50,000
6.Death2,00,000
7.Permanent Disability (80% or more)2,00,000
8.Partial Disability (40% to 80%)1,00,000
9.Burns affecting > 25% of body (excl. Acid Attack)2,00,000
10.Loss of foetus1,50,000
11.Loss of fertility1,50,000 47

*Source: Annexure to CVCF Guidelines [54, 55]*
*Note: If the victim is less than 14 years of age, the compensation shall be increased by 50% over the amount specified above.[41, 47, 54, 55]*

This table outlines the baseline compensation levels mandated by the Central Government as a prerequisite for states to receive the one-time CVCF grant, reflecting a central effort to standardize minimum support levels for specific, serious crimes.[47, 55]

3.3 NALSA’s Role and Model Scheme

The National Legal Services Authority (NALSA) has played a pivotal role in standardizing and enhancing victim compensation, particularly for vulnerable groups. Following directions from the Supreme Court in the case of Nipun Saxena v. Union of India (W.P. (C) No. 565/2012), which highlighted disparities and inadequacies in existing schemes 44, NALSA formulated the “Compensation Scheme for Women Victims/Survivors of Sexual Assault/other Crimes – 2018”.19

Key Features of NALSA Model Scheme (2018):

  • Dedicated Fund: Establishes a specific “Women Victims Compensation Fund” within the State Victim Compensation Fund, drawing resources from state allocations and the CVCF.61
  • Mandatory FIR Reporting: Requires police (SHO/SP/DCP) to immediately forward FIR copies for specified offenses (acid attack, sexual offenses under IPC Sections 354A-D, 376A-E, 304B, 498A with injury) to the SLSA/DLSA, enabling proactive consideration of interim compensation.61
  • Application Process: Outlines procedures for interim and final compensation applications (Form ‘I’), including online filing options.61 Requires supporting documents like FIR, medical reports, etc..61
  • Comprehensive Assessment: Lists factors for LSAs to consider when awarding compensation (gravity, injury severity, medical costs, loss of opportunities, etc.).61
  • Timelines & Disbursement: Aims for expeditious inquiry and specifies methods for disbursing compensation, including fixed deposits for minors with provisions for withdrawal for specific needs.61
  • Interim Relief: Includes provisions for immediate interim relief.61
  • Recovery & Appeal: Allows for recovery if the complaint is found false and provides an appeal mechanism against the DLSA Secretary’s decision.61
  • Eligibility: Applicable to women victims/dependents needing rehabilitation. Allows eligibility under multiple schemes but requires consideration of prior compensation received under Section 357B CrPC.61

Supreme Court Approval and Impact: The Supreme Court approved the NALSA scheme in Nipun Saxena.19 It mandated that the NALSA scheme serve as a guideline for all states/UTs, which were directed to restructure their existing schemes accordingly, ensuring that the NALSA provisions represent the minimum standard (states could offer more, but not less).44 The Court also extended its application as a guideline for Special Courts determining compensation under the Protection of Children from Sexual Offences (POCSO) Act, 2012.19 This judicial endorsement significantly propelled efforts towards greater uniformity and adequacy in compensation, especially for women and child victims of sexual violence and acid attacks.

  • Table 3.2: NALSA Model Scheme Compensation Schedule (2018)
Sl. No.Particulars of loss or injuryMinimum Limit (INR)Upper Limit (INR)
1.Loss of Life5,00,00010,00,000
2.Gang Rape5,00,00010,00,000
3.Rape4,00,0007,00,000
4.Unnatural Sexual Assault4,00,0007,00,000
5.Loss of Limb/Body Part (80%+ permanent disability)2,00,0005,00,000
6.Loss of Limb/Body Part (40% – <80% permanent disability)2,00,0004,00,000
7.Loss of Limb/Body Part (>20% – <40% permanent disability)1,00,0003,00,000
8.Loss of Limb/Body Part (<20% permanent disability)1,00,0002,00,000
9.Grievous physical injury or mental injury requiring rehabilitation1,00,0002,00,000
10.Loss of Foetus (Miscarriage due to Assault) or Loss of fertility2,00,0003,00,000
11.Pregnancy on account of rape3,00,0004,00,000
12.Victims of Burning:
– Disfigurement of face7,00,0008,00,000
– Injury > 50%5,00,0008,00,000
– Injury < 50%3,00,0007,00,000
– Injury < 20%2,00,0003,00,000
13.Victims of Acid Attack:
– Disfigurement of face7,00,0008,00,000
– Injury > 50%5,00,0008,00,000
– Injury < 50%3,00,0005,00,000
– Injury < 20%3,00,0004,00,000

*Source: NALSA Compensation Scheme for Women Victims/Survivors – 2018 [61]*
*Notes:*
*   *For minor victims, the minimum and upper limits are deemed 50% higher.[61, 65]*
*   *The upper limit may be exceeded in deserving cases with reasons recorded.[61]*
*   *Victims covered under multiple categories are entitled to be considered for the combined value.[61]*
*   *Acid attack victims are also entitled to additional compensation from PMNRF and for treatment.[61]*

This table provides the specific, court-endorsed benchmarks for compensation quantum, crucial for evaluating state scheme adequacy and judicial awards, particularly concerning violence against women and children.[44, 56, 61, 64]

3.4 State-Level Implementation

Following the mandate of Section 357A and the impetus from the CVCF and NALSA guidelines, most Indian states and Union Territories have notified their own Victim Compensation Schemes.3 Many states have actively incorporated or adapted the NALSA model scheme, particularly its provisions for women victims.41 Examples include Haryana, which implemented separate schemes (Part I for general victims, Part II aligned with NALSA for women victims) 57; Punjab, with its 2017 scheme detailing funding, eligibility, and procedures 52; Telangana, which notified its scheme in 2015 and later amended it to incorporate the NALSA scheme as an additional chapter 48; and Rajasthan, whose 2011 scheme was subject to judicial interpretation regarding retrospective application.42

Despite these efforts and the central push towards standardization, significant variations persist across state schemes regarding compensation amounts, eligibility criteria (e.g., income ceilings as seen in Telangana 48), and procedural nuances.9 This inherent tension between the central goal of uniformity (driven by CVCF and NALSA) and the state-level autonomy granted by Section 357A(1) remains a key challenge, potentially leading to inequitable outcomes for victims of similar crimes located in different jurisdictions. Some states, like Odisha, have adopted a broader approach, incorporating support services like shelter and counseling directly within their VCS, going beyond purely monetary compensation.37

The application and disbursement processes generally involve submitting claims to the DLSA/SLSA, followed by an inquiry (mandated to be completed within two months under Section 357A(5)) and the eventual award.36 Disbursement typically occurs through bank accounts, with specific safeguards like fixed deposits for minor victims.52 However, practical implementation faces hurdles. There are documented concerns about the gap between compensation awarded and compensation actually disbursed, often linked to inadequate or delayed allocation of funds by state governments to the LSAs.44 Furthermore, issues of low awareness among potential beneficiaries and stakeholders, complex application procedures, and bureaucratic delays hinder timely access to relief, suggesting a significant gap between the existence of schemes on paper and their effective functioning on the ground.27

4. Judicial Perspective and Interpretation

The Indian judiciary has been instrumental in shaping the landscape of victim compensation, often acting as a catalyst for legislative change and interpreting existing laws expansively to uphold victim rights.

4.1 Evolution of Compensatory Jurisprudence

Long before the enactment of Section 357A or the robust implementation of Section 357, the higher judiciary, particularly the Supreme Court, carved out a path for victim compensation through constitutional remedies. Leveraging the broad scope of Article 21 (Right to Life and Personal Liberty) and the writ jurisdiction under Articles 32 and 226, courts began awarding monetary compensation as a public law remedy for violations of fundamental rights by the state or its instrumentalities.1 The seminal case of Rudul Sah v. State of Bihar (1983) established this principle firmly, holding the state liable for compensating illegal detention.23 This judicial activism filled a critical void, recognizing the state’s duty not only to prosecute offenders but also to provide redress to victims when the state itself failed in its duty to protect fundamental rights.1 Courts emphasized that mere punishment of the offender was insufficient to render complete justice; the victim’s suffering and need for rehabilitation must also be addressed.6 This constitutional grounding elevates victim compensation beyond a simple statutory benefit, framing it as an integral aspect of human dignity and state accountability under the fundamental law of the land.6

4.2 Interpretation of CrPC Provisions

  • Section 357: As noted earlier, this section was largely ignored for years.11 Judicial intervention, particularly in the Karan case, sought to rectify this by interpreting the court’s power to award compensation (especially under subsection 3) as a mandatory consideration during sentencing.11 The judiciary stressed that this power is not merely ancillary but an additional tool for achieving justice, requiring liberal application.11 Courts identified key factors for determining quantum: the gravity of the offense, the severity of physical and mental harm, the victim’s losses, and the accused’s capacity to pay.1
  • Section 357A: Courts have recognized Section 357A as a legislative acknowledgment of the state’s duty towards victims, marking a significant shift.3 Its scope has been interpreted broadly to ensure compensation is available even in cases of acquittal or discharge, or when the offender is untraced, fulfilling the rehabilitative objective.19 Notably, some High Courts (e.g., Rajasthan HC) have held that Section 357A and the schemes thereunder can be applied retrospectively to incidents occurring before their enactment, given their beneficial and procedural nature.42 This interpretation significantly expands the potential reach of the compensation framework. The crucial role of LSAs in implementing the schemes under this section is consistently acknowledged by the courts.40

4.3 Key Principles Affirmed by Courts

Across various judgments, the judiciary has consistently affirmed several core principles:

  • Compensation as a Right: Victim compensation is not mere charity or ex-gratia payment but flows from the victim’s fundamental rights under Articles 14 and 21 of the Constitution, as well as statutory entitlements under the CrPC.6
  • Restorative Justice: Compensation is viewed as a vital tool for restorative justice, aiming to help victims heal, rehabilitate, restore their dignity, and reintegrate into society.2
  • State’s Obligation: The state has a constitutional and statutory obligation to protect its citizens and, consequently, a duty to compensate victims when this protection fails, or when the offender is unable to pay.1

This consistent judicial activism has been a primary driver in advancing victim compensation rights in India, often pushing the executive and legislature towards reform and ensuring that the victim’s perspective gains prominence within the criminal justice system. However, the translation of these judicial mandates into efficient administrative practice remains a challenge. For instance, the detailed procedural guidelines laid down in the Karan case, aimed at ensuring mandatory consideration of Section 357, paradoxically led to significant delays in sentencing, impacting the accused’s right to a speedy trial, as subsequently observed by the Delhi High Court in Saif Ali @ Sohan v. The State GNCT of Delhi.49 This illustrates the complex interplay between judicial intent to protect victim rights and the practicalities of procedural implementation within the existing justice system infrastructure.

5. Landmark Case Law Analysis

Several landmark judicial decisions have profoundly influenced the development and application of victim compensation laws in India.

5.1 Rudul Sah v. State of Bihar (1983)

  • Facts: The petitioner, Rudul Sah, was arrested in 1953 for the alleged murder of his wife. Although acquitted by the Sessions Court in Muzaffarpur in 1968, he remained incarcerated for an additional 14 years, only being released in October 1982 after a Public Interest Litigation (PIL) was filed on his behalf under Article 32 of the Constitution.23 The petition sought his release (which occurred before the final hearing) and ancillary relief, including compensation for illegal detention and rehabilitation costs.23 The state’s defense, claiming he was detained due to unsoundness of mind, was found unsubstantiated and callous by the Court.23
  • Issue: The central legal question was whether the Supreme Court, exercising its powers under Article 32 for the enforcement of fundamental rights, could award monetary compensation for the violation of the right to life and personal liberty (Article 21) through illegal detention.23
  • Ruling: The Supreme Court answered affirmatively. Chief Justice Y.V. Chandrachud, writing for the Court, held that the petitioner’s detention was wholly unjustified.23 The Court reasoned that Article 21 would be stripped of its meaning if the Court’s power under Article 32 was limited merely to ordering release. It declared that the “right to compensation is some palliative for the unlawful acts of instrumentalities which act in the name of public interest”.23 Awarding compensation was deemed essential to make the right to life meaningful.74 The Court awarded Rs. 30,000 as interim compensation (in addition to Rs. 5,000 already paid), emphasizing that this did not preclude the petitioner from filing a separate civil suit for damages for false imprisonment.23
  • Significance: Rudul Sah is a cornerstone of Indian compensatory jurisprudence.23 It established the principle that monetary compensation could be awarded as a constitutional remedy under Article 32 for the violation of fundamental rights, particularly Article 21, even in the absence of explicit textual provision.23 It decisively rejected state immunity for such violations, emphasizing state accountability for the actions of its agents.24 This judgment significantly expanded the remedial power of the Supreme Court and paved the way for numerous subsequent cases where compensation was awarded for illegal detention, custodial deaths, and other fundamental rights breaches.23 It fundamentally shifted the focus towards providing tangible relief to victims of state overreach.

5.2 Karan v. State NCT of Delhi (2021)

  • Context: A Full Bench of the Delhi High Court addressed the persistent issue of trial courts neglecting the provisions of Section 357 CrPC regarding victim compensation during sentencing.11
  • Ruling: The High Court delivered a significant judgment aimed at ensuring the systematic application of Section 357. It declared that consideration of compensation under Section 357 is mandatory (‘may’ in Section 357(3) interpreted as ‘shall’).11 To facilitate this, the Court laid down a detailed, mandatory procedure:
  1. Post-conviction, the accused must file an affidavit disclosing assets and income in a prescribed format (Annexure-A) within 10 days.
  2. The State must file an affidavit detailing prosecution expenses within 30 days.
  3. The trial court must immediately forward the judgment and accused’s affidavit to the Delhi State Legal Services Authority (DSLSA).
  4. DSLSA must conduct a summary inquiry within 30 days to assess the victim’s loss (physical, emotional, financial) and the accused’s paying capacity, submitting a Victim Impact Report (VIR) with recommendations (formats provided in Annexures B/B-1).
  5. The trial court, after considering the VIR and hearing parties (including the victim), must decide on compensation under Section 357 based on factors like offense gravity, harm, loss, and accused’s capacity.
  6. If the accused lacks capacity or the compensation under Section 357 is inadequate for rehabilitation, the court must invoke Section 357A CrPC and recommend the case to DSLSA for compensation from the State Victim Compensation Fund.11
  • Significance: This judgment represented a strong judicial push to enforce a neglected statutory provision, making victim compensation an integral and mandatory part of the sentencing process in Delhi. It introduced structured procedural mechanisms (affidavit, VIR, summary inquiry) intended to provide courts with the necessary information to make informed decisions on compensation.11
  • Analysis: The Karan guidelines aimed to operationalize the principles of victim-centric justice embedded in Section 357. However, the rigidity and time-bound nature of the mandated procedures (inquiry by DSLSA within 30 days, etc.) proved challenging in practice. As highlighted in the subsequent case of Saif Ali @ Sohan 49, these procedures led to significant delays (up to two years) in the pronouncement of sentences, thereby infringing the accused’s right to a speedy trial and hindering timely appeals. This demonstrates the potential pitfalls of judicially mandated procedures, where well-intentioned efforts to protect one set of rights (victim’s right to compensation) can inadvertently create practical difficulties and impact other fundamental rights (accused’s right to speedy trial), necessitating a careful balancing act and potential refinement of such guidelines based on implementation feedback.

5.3 Nipun Saxena v. Union of India (2018/2019)

  • Context: This PIL addressed the critical issues of inadequate and non-uniform compensation being provided to victims of sexual offenses and acid attacks across various states under their respective Victim Compensation Schemes formulated under Section 357A CrPC.44 The petition also raised concerns about the utilization of the Nirbhaya Fund.56
  • Ruling: The Supreme Court took proactive steps to address these concerns. It directed the National Legal Services Authority (NALSA) to constitute a committee and prepare a model victim compensation scheme specifically for sexual offenses and acid attacks.44 Subsequently, the Court reviewed and approved the “NALSA’s Compensation Scheme for Women Victims/Survivors of Sexual Assault/other Crimes – 2018”.19 Crucially, the Court directed that this NALSA scheme should serve as a minimum standard and guideline for all State Governments and Union Territory Administrations, requiring them to amend their existing schemes accordingly (allowing additions but not subtractions).44 The Court further directed that the NALSA scheme should also guide Special Courts dealing with cases under the POCSO Act, 2012, in determining compensation for child victims until specific rules were finalized.19 The Court mandated publicity for the scheme and its order.64
  • Significance: Nipun Saxena is a landmark judgment that directly led to the creation and nationwide adoption (as a minimum benchmark) of the NALSA model scheme.56 It significantly influenced compensation standards, particularly enhancing the focus on and quantum for victims of sexual assault, acid attacks, and child sexual abuse. By mandating the NALSA scheme as a guideline, the Supreme Court took a major step towards achieving greater uniformity and adequacy in victim compensation across India.
  • Analysis: This case highlights the Supreme Court’s role in driving policy formulation and implementation through judicial directives. By empowering NALSA and endorsing its scheme, the Court established a national baseline, addressing the problematic disparities that existed previously. However, the effectiveness of this intervention relies on diligent state implementation and the adequacy of the NALSA scheme itself. Some analyses point to potential limitations within the NALSA scheme, such as its hierarchical approach to compensation based on crime type (e.g., prioritizing gang rape) which may not fully reflect the nuances of victim trauma, and its exclusion of male victims of sexual assault.63 Ongoing implementation challenges related to funding, awareness, and accessibility also persist despite the scheme’s existence.60

5.4 Other Significant Judicial Developments

  • Retrospective Application of Section 357A: At least one High Court (Rajasthan) has explicitly ruled that Section 357A and the corresponding state scheme are beneficial and procedural in nature and thus applicable retrospectively to incidents that occurred before their enactment in 2009/2011.42 This interpretation, if widely adopted, could significantly expand the pool of victims eligible for state-funded compensation.
  • Emphasis on Adequacy: Courts consistently reiterate that compensation awarded, whether under Section 357 or 357A, must be adequate for the victim’s rehabilitation and should not be merely symbolic or nominal.7 Section 357A(3) itself provides a mechanism for seeking additional compensation if the amount under Section 357 is insufficient.
  • Continued Constitutional Compensation: The judiciary continues to award compensation under Articles 32/226 for fundamental rights violations, particularly in cases of state negligence or abuse of power, reinforcing the principles laid down in Rudul Sah and subsequent cases like Nilabati Behera, Bhim Singh, and D.K. Basu.69

These landmark cases collectively demonstrate a clear judicial trend: identifying systemic failures or legislative gaps concerning victim rights, interpreting laws expansively (often relying on constitutional principles), and frequently issuing directives or guidelines to compel executive or legislative action, thereby actively shaping the contours of victim compensation law and practice in India.

6. Supporting Initiatives for Victim Rehabilitation

Beyond direct financial compensation under the CrPC and specific state schemes, India has implemented other initiatives aimed at providing broader support and rehabilitation services to victims of crime.

6.1 One Stop Centres (Sakhi Scheme)

  • Concept and Funding: Launched in 2015, the One Stop Centres (OSCs), popularly known as ‘Sakhi’ centres, aim to provide a range of integrated services under one roof to women affected by violence in any setting (private or public).76 The scheme was initially funded through the Nirbhaya Fund and is now part of ‘Mission Shakti’, the umbrella scheme for women’s safety and empowerment.76 It is a Centrally Sponsored Scheme with 100% central funding.78
  • Services Offered: OSCs are designed to facilitate access to emergency response and rescue, medical assistance, police facilitation (including FIR/DIR lodging), psycho-social counseling, legal aid and counseling (often through linkages with NALSA/DLSA), and temporary shelter (typically up to 5 days).77 They also aim to connect victims with other government agencies and NGOs for longer-term support like education or job training.77 The target group includes all women affected by violence, irrespective of background, and girls below 18 years (with linkages to JJ Act/POCSO authorities).78
  • Status and Evaluation: Hundreds of OSCs have been established and are operational across districts in India, assisting a large number of women.76 However, evaluations and reports indicate significant operational challenges. A major issue is the substantial underutilization of funds released by the Union Government; less than half the funds released between 2015-2022 were reportedly utilized on the ground, with large sums remaining unspent in district accounts.82 Other reported problems include inadequate infrastructure (power issues, lack of accessible toilets), staffing shortages (prescribed staff strength often not met), lack of specialized training for staff (including police personnel posted at OSCs), low pay affecting staff retention, insufficient awareness among the public and key stakeholders like the police, and inconsistent effectiveness across different locations.77 The need for better integration with other services, such as the Women Helpline (WHL 181), has also been highlighted.76

6.2 Witness Protection Scheme, 2018

  • Context and Legal Basis: Recognizing the critical role of witnesses in the justice system and the frequent threats, intimidation, or coercion they face, leading them to turn hostile or be harmed 83, the Ministry of Home Affairs (MHA) formulated the Witness Protection Scheme, 2018. This was developed following directions from the Supreme Court in Mahender Chawla v. Union of India 84 and based on long-standing recommendations from the Law Commission of India (particularly the 198th Report dedicated to the subject).84 The Supreme Court endorsed the scheme in December 2018, making it binding across India under Article 141/142 of the Constitution.87 The principles of witness protection have now been incorporated into the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which is set to replace the CrPC.83
  • Objectives and Features: The primary aim is to ensure witnesses can provide testimony freely and fairly without fear, thereby safeguarding the integrity of the investigation, prosecution, and trial process.83 Key features include:
  • Threat Assessment: Witnesses are categorized based on threat perception (Category A: life threat; Category B: threat to safety/reputation/property; Category C: moderate threat/harassment) determined through a Threat Analysis Report (TAR).86
  • Protection Measures: A range of measures can be ordered based on the threat level, including concealing or changing the witness’s identity, relocation, installing security devices, providing police escorts, ensuring anonymity during investigation/trial (e.g., in-camera proceedings, specially designed courtrooms), and preventing face-to-face contact with the accused.85
  • Competent Authority: A Standing Committee in each district, chaired by the District & Sessions Judge, with the District Police Head and District Prosecution Head as members, decides on protection applications.85
  • Funding: A State Witness Protection Fund is mandated to cover scheme expenses, funded through budgetary allocations, court-ordered costs, donations, and CSR contributions.85
  • Implementation Status: The scheme, though legally binding, is still considered to be in its early stages of implementation.84 The Supreme Court itself has expressed concerns about the lack of its effective implementation across the country.86 Challenges likely include resource allocation for the funds and protection measures, establishing robust threat assessment mechanisms, ensuring inter-agency coordination, and building capacity within the designated Competent Authorities and protection cells.84

6.3 Other Relevant Acts and Initiatives

Victim support and compensation are also addressed, to varying degrees, in several other specific legislations:

  • Protection of Children from Sexual Offences (POCSO) Act, 2012: Contains provisions for child-friendly procedures and mandates compensation for child victims, often determined by Special Courts, guided by the NALSA scheme.6 Rule 7 of the POCSO Rules details factors for determining compensation.64
  • Protection of Women from Domestic Violence Act, 2005: Provides civil remedies, including protection orders and monetary relief (which can encompass compensation for injuries, medical expenses, loss of earnings) for women facing domestic violence.6
  • Fatal Accidents Act, 1855: Enables dependents to claim damages for loss resulting from a death caused by a wrongful act, neglect, or default; referenced in Section 357(1)(c) CrPC.7
  • Motor Vehicles Act, 1988: Contains provisions for compensation in cases of death or bodily injury arising from motor vehicle accidents, often adjudicated by Motor Accident Claims Tribunals.16
  • Probation of Offenders Act, 1958: Section 5 allows courts, when releasing an offender on probation or after admonition, to order the offender to pay reasonable compensation for loss or injury caused to the victim.16
  • Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989: Provides for relief and rehabilitation measures, including monetary compensation, for victims of atrocities belonging to SC/ST communities.68
  • Railways Act, 1989: Section 124A provides for compensation in case of untoward incidents.68
  • Specific Relief Funds: Additional financial assistance may be available from specific funds like the Prime Minister’s National Relief Fund (PMNRF), particularly noted for providing extra aid to acid attack victims.52 State-level funds like the Chief Minister Relief Fund or specific schemes (e.g., Punjab Financial Assistance to Acid Victims Scheme 2017) may also exist.52
  • Role of Commissions: The National Human Rights Commission (NHRC) and State Human Rights Commissions (SHRCs) can investigate human rights violations and recommend relief, including compensation.43 The National Commission for Women (NCW) has also played a role in advocating for victim compensation, particularly for rape victims, and drafted a scheme in 2005.43

The existence of these varied initiatives alongside the primary Victim Compensation Scheme under Section 357A CrPC underscores a multi-pronged, yet potentially fragmented, approach to victim support in India. While aiming for comprehensive coverage, this multiplicity of schemes and responsible agencies (LSAs, OSCs, MHA for Witness Protection, specific Tribunals, Commissions) risks creating overlaps, inconsistencies, and navigational challenges for victims seeking assistance. Effective coordination and clear referral pathways between these different bodies are crucial but may be lacking in practice. Furthermore, initiatives like OSCs and Witness Protection, which address vital non-monetary needs like safety, shelter, and counseling, appear to face similar implementation deficits (funding, staffing, awareness) as the compensation schemes, suggesting systemic challenges in translating policy intent into effective ground-level support for victims across various programs.

7. Conclusion and Recommendations

7.1 Synthesis of Findings

The landscape of victim compensation in India has evolved significantly from a state of near-neglect towards a more victim-centric approach, driven by judicial activism, legislative reforms, and international norms. The Code of Criminal Procedure, 1973, provides the core statutory framework through Section 357 (offender-funded compensation linked to conviction/fine) and, more crucially, Section 357A (mandating state-funded Victim Compensation Schemes irrespective of trial outcome). Sections 357B and 357C further strengthen support for victims of specific heinous crimes (acid attacks, rape) by ensuring additional compensation and mandatory free medical treatment.

State governments, coordinated by the central government and supported by the Central Victim Compensation Fund (CVCF), have established schemes, largely implemented through Legal Services Authorities (LSAs). The National Legal Services Authority (NALSA) has played a vital role, formulating a model scheme, particularly for women and child victims of sexual assault and acid attacks, which the Supreme Court endorsed as a national guideline (Nipun Saxena). The judiciary has been a powerful force, interpreting Article 21 expansively to grant compensation even before statutory schemes were robust (Rudul Sah), mandating consideration of compensation during sentencing (Karan), and pushing for uniformity and adequacy. Supporting initiatives like One Stop Centres (Sakhi) and the Witness Protection Scheme aim to provide integrated non-monetary support, including safety, shelter, and counseling.

7.2 Identified Challenges

Despite considerable progress, the system faces persistent challenges:

  • Lack of Uniformity: Significant disparities remain in compensation amounts, eligibility criteria (e.g., income caps), and procedures across state-level VCS, undermining equity for victims of similar crimes in different jurisdictions.9
  • Adequacy Concerns: The quantum of compensation often raises questions about its sufficiency for genuine rehabilitation, considering inflation, medical costs, and long-term impact. The crime-category-based approach (even in the NALSA scheme) may not adequately capture the severity of individual trauma.12
  • Implementation Gaps: Bureaucratic delays in processing claims by LSAs, often exceeding the two-month mandate of Section 357A(5), are common.49 There’s often a significant gap between funds allocated/awarded and funds actually disbursed to victims.44
  • Awareness Deficit: Many victims, and even stakeholders like police and medical professionals, remain unaware of the existence, scope, and procedures of VCS and related support services like OSCs.44
  • Accessibility Issues: Complex application forms, documentation requirements, geographical barriers to accessing LSAs/OSCs, and lack of assistance in navigating the process act as significant barriers for vulnerable victims.27
  • Funding Sustainability and Utilization: The shift to a one-time CVCF grant raises questions about long-term state funding capacity.55 Moreover, substantial underutilization of allocated funds points to administrative inefficiencies or bottlenecks.82
  • Coordination Deficiencies: The fragmented nature of various schemes (VCS, OSC, Witness Protection, specific Acts) leads to potential overlaps and lack of effective coordination between implementing agencies, confusing victims.
  • Scope Limitations: Current frameworks may inadvertently exclude certain victim categories, such as male victims of sexual assault in the NALSA scheme’s focus 63, or may not adequately address the needs of indirect/tertiary victims.
  • Procedural Bottlenecks: Judicially mandated procedures, while well-intentioned (e.g., Karan guidelines), can sometimes create unintended delays and impact other rights.49

7.3 Recommendations

Based on the analysis of the legal framework, judicial perspectives, scheme structures, and identified challenges, the following recommendations are proposed:

  1. Enhance Uniformity and Adequacy:
  • Strengthen mechanisms to ensure state VCS adhere strictly to NALSA/CVCF minimum standards, potentially through central monitoring or revised guidelines.
  • Consider enacting central legislation outlining core principles and minimum entitlements for victim compensation nationwide.
  • Regularly review and index compensation amounts to inflation and cost of living. Move towards a more impact-based assessment rather than solely relying on crime categories, considering factors outlined in NALSA scheme/POCSO Rules comprehensively.
  1. Streamline Implementation and Disbursement:
  • Simplify application forms and procedures across states. Actively promote and enhance online application portals.41
  • Strictly enforce the two-month inquiry timeline for LSAs under Section 357A(5) through performance monitoring.
  • Establish transparent mechanisms to track fund flow from allocation to final disbursement, minimizing delays. Address procedural bottlenecks identified in cases like Saif Ali 49 by refining guidelines based on practical feedback.
  1. Increase Awareness and Accessibility:
  • Launch sustained, multi-lingual awareness campaigns targeting victims, communities, police, judiciary, healthcare providers, and legal aid lawyers regarding VCS, OSCs, Witness Protection, and other victim rights/services.44
  • Empower and adequately resource LSAs and OSCs to conduct outreach activities. Enhance the role of Para Legal Volunteers in assisting victims with applications and information.44
  1. Ensure Sustainable Funding and Utilization:
  • Re-evaluate the CVCF funding model to ensure long-term central support for states.
  • Address the root causes of fund underutilization at the state/district level through capacity building, simplified financial procedures, and accountability mechanisms.
  1. Promote Inter-Agency Coordination:
  • Develop clear Standard Operating Procedures (SOPs) and referral protocols for coordination between LSAs, OSCs, police (especially regarding FIR reporting 61), hospitals (Sec 357C compliance), prosecution, child welfare committees, and other relevant bodies.
  1. Broaden Scope and Inclusivity:
  • Review and amend scheme eligibility criteria to ensure inclusivity across gender identities and address the needs of indirect victims where appropriate. Ensure definitions align with international best practices.17
  1. Strengthen Monitoring, Evaluation, and Research:
  • Implement robust Monitoring and Evaluation (M&E) frameworks for VCS, OSCs, and Witness Protection schemes to assess effectiveness, identify bottlenecks, and inform policy improvements.
  • Encourage research on victim needs, scheme impacts, and best practices in victim support within the Indian context.

Addressing these challenges through concerted legislative, judicial, and administrative efforts is crucial to ensure that the right to compensation translates into meaningful justice and effective rehabilitation for all victims of crime in India, truly moving the system beyond punitive measures towards a genuinely restorative and supportive framework.

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