VICTIM COMPENSATION SCHEME

Chapter 2: The Legal Framework of Victim Compensation in India

The origin and development of victim compensation in India provide a mirror to the increasing
emphasis on victim rights in the larger criminal justice system. Traditionally, Indian laws would
mainly take the perspective of punishing the offender, thus neglecting the demands and plight of
the victims. Yet, through time and judicial activism, great progress has been made towards
ensuring that victims are not left without remedies. This chapter discusses the legislative
provisions, statutory mechanisms, and judicial pronouncements that are the foundations of victim
compensation in India.

The framework comprises constitutional mandates and statutory laws such as the Code of
Criminal Procedure (CrPC), 1973, and state schemes that provide monetary and rehabilitative
assistance to victims of crime. The enactment of Sections 357A of the CrPC marked a shift by
compelling the states to set up schemes of victim compensation. 1 Furthermore, the Indian
jurisprudence has been influenced from the human rights perspective and international
obligations to reinforce the necessity to compensate victims.

This chapter intends to analyze in a critical way the evolution, implementation, and issues of
victim compensation laws in India, highlighting the achievements attained on one hand and also
revealing the gaps that still hinder victim-oriented justice.

2.1. Concept of Victim Compensation: Global and Indian Definitions

1 Elisha Kanungo & Paromita Chattoraj, Award of Compensation as a Mode of Victim Restoration: A
Comparative Analysis of Laws in India, New Zealand and Germany, 15 International Journal of Criminal
Justice Sciences 325 (2020).

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Across global and national jurisdictions, victim compensation has come to be accepted as an
essential piece of restorative justice. In earlier days of the criminal justice systems, TransEnglish
would have been better used to indicate the punishment or infliction of justice on the offenders
were made; thus, there was little or no consideration by way of compensation towards the victim
for harm or trauma. However, the modern-day legal frameworks give more emphasis on the
victim, especially his or her right to compensation for physical, psychological, and financial
injuries.

Victim compensation recognizes the fact that justice is not complete unless the victims are
acknowledged, heard, and satisfactorily recompensed. This section attempts to explore the
philosophical basis of victim compensation by looking at international aspects such as the 1985
United Nations Declaration of Basic Principles of Justice for Victims of Crime and Abuse of
Power, statutory aspects concerning the Code of Criminal Procedure, 1973 (CrPC), and
emerging Indian judicial interpretations that have affected the prevalent knowledge and
implementation of victim compensation within India.2

Global Understanding of Victim Compensation

2.1.1 UN Declaration of Basic Principles of Justice for Victims of Crime and Abuse of
Power, 1985

A historic milestone in the recognition of victims' rights and needs worldwide came in 1985
when the UN General Assembly adopted the UN Declaration of Basic Principles of Justice for
Victims of Crime and Abuse of Power. Although not binding, the Declaration offered ..."
normative principles upon which countries could begin building frameworks privileging redress
for victims:

Definition of ‘Victims’ under the UN Declaration

2 Dipa Dube, Victim Compensation Schemes in India: An Analysis, 13 International Journal of Criminal
Justice Sciences 370 (2018).

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According to Paragraph 1 of the Declaration – “Victims” means persons who, individually or
collectively, have suffered harm, including physical or mental injury, emotional suffering,
economic loss or substantial impairment of their fundamental rights, through acts or omissions
that are in violation of criminal laws operative within Member States. 3

This extensive definition accepts the recognition of direct and indirect victims, including family
members or dependents of the primary victim, who are direct victims of harm caused by the
crime.

Key Principles Regarding Compensation

The UN Declaration advances a set of key principles revolving around access to justice, fair
treatment, restitution, and compensation:

Access to Justice and Fair Treatment (Para 4–7): States should do everything possible to ensure
that judicial and administrative procedures are accessible to victims of crimes, that unnecessary
delay is eliminated from the entire process, and that victims are treated with respect, compassion,
and dignity.4

Restitution (Para 8–10): When possible, offenders should make fair restitution to victims for
harm caused by the crime. This may include return of property, damages, services, or other
forms of compensation that include financial remuneration.5

Compensation (Para 12–13): States should establish funds to compensate victims of violent
crimes and their families for the death of a family member when restitution from the offender
cannot be obtained. In emphasis, the Declaration asserts that the state must assume responsibility
when the offender is unable or unwilling to pay.6

3 U.N. Declaration of Basic Principles of Justice for Victims of Crime and Abuse of Power, ¶ 1, G.A. Res.
40/34, annex, 40 U.N. GAOR Supp. No. 53, U.N. Doc. A/40/53 (Nov. 29, 1985).
4 G.A. Res. 40/34, annex, ¶¶ 4–7, U.N. Doc. A/40/53 (Nov. 29, 1985).
5 G.A. Res. 40/34, annex, ¶¶ 8–10, U.N. Doc. A/40/53 (Nov. 29, 1985).
6 G.A. Res. 40/34, annex, ¶¶ 12–13, U.N. Doc. A/40/53 (Nov. 29, 1985).

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Assistance (Para 14–17): States should provide social, medical, psychological, and legal
assistance to victims.7

Significance of the Declaration: It provides a universal blueprint for national policies and laws.
Emphasizes the state’s moral obligation to compensate where private restitution is inadequate.
Serves as a basis for human rights litigation and advocacy for better victim-centric legal
frameworks.

2.1.2 Indian Legal Framework on Victim Compensation: Statutory Provisions and Judicial
Definitions

Histories of victim compensation in India are traced back mainly to the amendments made to the
Code of Criminal Procedure, 1973 (CrPC), and the judicial interpretations that extended victim
rights in tune with constitutional guarantees. The present chapter covers the statutory definitions
of "victim," relevant provisions under the CrPC, developments through judiciary, and the issues
of significance plaguing the implementation of the schemes for victim compensation across the
country.

Statutory Definition of Victim under the Code of Criminal Procedure

A term "victim" found official recognition under the Indian law with the enactment of the Code
of Criminal Procedure (Amendment) Act, 2008, which added Section 2(wa) to the CrPC. The
Section defines a "victim" as:

"any person who has suffered any loss or injury caused to him by an act or omission for which
the accused person has been charged and includes his or her guardian or legal heir."8

Key Features of the Definition

Inclusive of Physical and Economic Injury: This definition clearly includes not only physical
injuries but also economic losses sustained by the victim. With this extended meaning, it is

7 G.A. Res. 40/34, annex, ¶¶ 12–13, U.N. Doc. A/40/53 (Nov. 29, 1985).
8 Code of Criminal Procedure Amendment Act, No. 25, Acts of Parliament, 2008 (India).

4
accepted that crimes often occur multidimensional harm beyond physical injuries, including
injuries to livelihood and property.

Recognition of Representatives: By including legal guardians and heirs, the law recognizes those
who can legally represent or claim on behalf of victims unable to claim compensation
themselves, such as minors or deceased victims.9

Linkage to Criminal Proceedings: The victim’s status is directly connected to the criminal charge
against the accused, thereby linking compensation rights to the outcome of criminal proceedings.

This statutory recognition was a major shift from the traditional adversarial system where
victims were often sidelined. It formally integrated victims into the criminal justice framework,
paving the way for legal remedies focused on restitution and rehabilitation.

2.1.3 Victim Compensation under the Code of Criminal Procedure

The Code of Criminal Procedure contains several provisions relating to victim compensation,
mainly under Sections 357, 357A, 357B, and 357C. These provisions provide the backdrop
against which courts and state agencies may order compensation either from the perpetrator or
from state-sponsored victim compensation schemes.

Section 357- Compensation from Fine

Section 357 allows criminal courts to order that compensation be paid to victims from a fine
imposed on offenders. One of the earliest provisions in the Indian legal context, it provided that
either a part of or the entire fine collected from an offender could be paid to the victim as
restitution for the damage suffered.

Scope and Limitation

Scope: Compensation under Section 357 can be for any loss or injury suffered by the victim for
which the accused was convicted and fined.

9 Verma, Jagdish Sharan, Leila Seth & Gopal Subramanian, Report of the Committee on Amendments to
Criminal Law (2013).

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Limitation: Compensation under Section 357 depends largely upon successful prosecution and
conviction of the offender, applies only when the court imposes a fine or sentences the offender
to a punishment which includes a fine and judgment of acquittal or imprisonment without fine
does not give any remedy to the victim under this section10.

No Interim Relief: Interim compensation during an ongoing trial or where the question of the
offender's ability to pay is raised is not possible under Section 357.

While Section 357 serves as an important instrument for accessing compensation, its application
is limited where the accused is not fined or the prosecution does not end in a conviction.

Section 357A – The Landmark Victim Compensation Scheme

Introduced through the 2008 Amendment to the CrPC, Section 357A marks a turning point in
victim compensation law in India. This Legislated the mandate that every State Government
shall set up in collaboration and consultation with the Central Government, a Victim
Compensation Scheme (VCS) for the purpose of making funds available in support of victims or
their dependents.

Key Provisions of Section 357A

States: Every State shall have to formulate schemes for victim compensation, so that
compensation is provided to victims irrespective of whether the offender has been convicted of
any offence.

Compensation irrespective of trial outcome: Courts have the power to recommend compensation
in cases where the accused is acquitted or discharged, if the victim requires rehabilitation. 11

Applications direct to DLSA: Compensation can be sought by victims through direct applications
to the District Legal Services Authority (DLSA), enabling an accessible and victim-friendly
process.

10 Vibha Mohan, Revisiting Victim Compensation in India, 4 Indian J.L. & Pub. Pol’y 88 (2017).
11 Maaz Ali Khan, A Study of Victim Compensation in India with Emphasis on Judicial Activism, 1 Int’l
J.L. Mgmt. & Human. 1593 (2024).

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Rehabilitation emphasis: The scheme emphasizes rehabilitation and dignity of victims,
recognizing that compensation is not merely for punishment but is redemptive.

Significance of Section 357A

Section 357A transferred state accountability for guaranteeing the rights of victims that
previously rested solely with the offender. In concert, it fills the huge gaping holes left by
Section 357, by providing for compensation even in the absence of penalty on the offender. This
section essentially reflects India conforming to international standards, such as that specified in
the UN Declaration of Basic Principles of Justice for Victims of Crime (1985), which recognizes
the duty of the state to assist victims.

Sections 357B and 357C – Supplementary Provisions

Section 357B (Inserted by Criminal Law (Amendment) Act, 2013): It clarifies that whatever
compensation is awarded under Section 357A is additional to the compensation that may be
awarded under any other provision of law specified under the Indian Penal Code (for e.g.,
Sections 326A and 376D relating to grievous hurt and sexual offences).12 In effect, this makes
sure that victims are not deprived of various avenues of relief.

Section 357C: Requires hospitals and medical institutions to offer free and immediate medical
treatment to victims of certain specified crimes, especially sexual offences, and inform the police
authorities accordingly. The provision encapsulates the glaring need for requisite medical
intervention and victim protection from even the earliest moment.

2.1.4 Judicial Interpretation and Development of Victim Compensation

The Indian judiciary has played an active and transformative protean role in evolving the
jurisprudence relating to victim compensation. Courts have been liberal and progressive in
construing the statutory provisions, keeping in view constitutional values under Article 14
(Equality), Article 21 (Right to Life and Personal Liberty), and Article 39(A) (Equal Justice). 13
12 Rituparna Bhattacharyya, Criminal Law (Amendment) Act, 2013: Will It Ensure Women’s Safety in
Public Spaces?, 1 J. Space & Culture, India 13 (2013).
13 Ashwini Kumar Sahu & Laxmikanta Das, Victim Jurisprudence and Victim Compensation Scheme:
Socio-Legal Analysis, 8 NUJS J. Regul. Stud. 51 (2023).

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Enlarge Scope of Meaning and Rights of Victims
A few landmark judgments have enlarged the scape of victim compensation and have enunciated
in the context of victim dignity, rehabilitation, and speedy relief. Courts have stressed that victim
compensation is a right and not a charity, and thus is a part of the equity or fairness of the justice
delivery system.14

Enforcement of Victim Compensation Scheme

The judiciary has been vigilant to watch the implementation of the Victim Compensation
Schemes. In 2015, the Supreme Court in Laxmi v. Union of India stressed the need for the
effective compensation and rehabilitation of acid attack victims and directed the states to put in
place comprehensive schemes and fast track courts. In like manner, courts have directed setting
up of dedicated victim compensation funds and have also found fault with the dilatory manner of
disbursement of payments, hence have insisted on the need for transparency and accountability.

Locate/Remove Procedural Barriers and Widen Eligibility

The courts have struggled to remove procedural barriers so that the victim himself can approach
legal service authority without any complicated formalism. They have extended compensation to
include suffering of victims under police excesses, custodial violence, and of other vulnerable
groups.15

2.1.5 Critical Analysis: Progress and Challenges

Progressive Aspects

Formal Recognition of the Victims: The statutory definition of "victim" and the passing of
Victim Compensation Schemes have made the victims build up into the larger criminal justice
process.

14 Kool, Renée SB. "(Crime) Victims’ compensation: the emergence of convergence." Utrecht Law
Review 10, no. 3 (2014).
15 Aakash Yadav, Legal Framework and Historical Evolution of Victim Compensation, 5 Indian J. Legal
Rev. 5 (2025).

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State Responsibility: In theory and practice, a compensation paid by the State must mark a
drastic departure from accused-dependent models, which would otherwise constitute
international best practice.16

Judicial Activism: Courts have given enforcement to the compensation provisions and further
enlarge the scope of rights and interests of victims by interpretative processes.

Rehabilitation Focus: Now the focus is on restoring the dignity and well-being of victims rather
than on being retributive justice.

Danger Signs-Concerns That Threaten the Future of Victim Compensation in India

In addition to these factors, a few glaring issues act as barriers to adequate compensation of
victims in India:

Lack of Uniformity: Compensation amounts and modes of assessment vary from state to state,
hence either denying uniformity or creating confusion in the minds of victims.

Poor Implementation: Delays at various stages in constituting and disbursing amounts of

compensation, layers of bureaucratic red tape and administrative inefficiency, non-coordination
among agencies defeating the relief intended. 17

Limited Awareness: At times, the victims and in most cases, even the legal practitioners are not
aware of such compensation schemes, and real justice is often denied to them.

Resource Constraints: SLSAs are perpetually short of funds and, therefore, lack the capacity to
deal with the claims in a timely manner.

16 Srishti Singh & Amalendu Mishra, Beyond the Verdict: The Journey of Victim Compensation in the
Indian Legal Landscape, 7 Int’l J.L. Mgmt. & Hum. 1540 (2024).
17 Madhuker Sharma, Compensatory Justice to the Victim of a Crime and Judicial Practices in India: An
Empirical Study, 28 Int’l Rev. Victimol. 167 (2022).

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Dependence on Criminal Process: Even if Section 357A has tried to distance itself as much as
possible from this dependence, most other compensation mechanisms still depend a lot on a
criminal conviction, which is a tedious and uncertain process.

Inadequate Data and Monitoring: A system of data compilation at one end and an independent
monitoring mechanism to watch the rate of success of victim compensation schemes on the other
simply do not exist18.

In the Indian context, the growth of victim compensation law stands as a great landmark moving
away from the offender-centered criminal justice system and toward a victim-centered system, in
accordance with international human rights norms. Statutory definitions, compulsory victim
compensation schemes, and proactive judicial intervention have institutionalized the principle
that the victims need to be acknowledged across institutions and conferred with meaningful
redress. The scheme intends to uphold victim dignity, health, and rehabilitation through
monetary compensation and ancillary benefits. 19 However, bridging these gaps of
implementation, spreading awareness on the subject, uniformity in approaches, and improved
funding and administrative capacity is a must so as to realize the full capacity of such laws.
Compensation to victims is never charity but the right of a victim and a social duty, descending
from the very principles of justice.

2.2 Section 357, 357A, and Other Provisions under CrPC, 1973

The Indian criminal justice system has essentially shifted from an offender-centric model to one
centred on the victim. In older days, victims were mostly treated as passive witnesses in the
criminal procedure, without much institutional help or recognition. Thanks to legislative reforms
in the Code of Criminal Procedure, 1973, victims' rights have gradually been strengthened with
increasing regard laid upon their rehabilitation and compensation. Sections 357, 357A, and other
such provisions in the CrPC lay down the statutory basis for victim compensation in India.

18 Frances L. Pierson, Victim Compensation Through Sentencing, 14 Colonial L. 19 (1984).

19Marnix R. Hebly, Josanne D.M. Van Dongen & Siewert D. Lindenbergh, Crime Victims’ Experiences
with Seeking Compensation: A Qualitative Exploration, Utrecht L. Rev. (2014), at 27.

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2.2.1 Section 357 CrPC: Court-Directed Compensation

Section 357 of the CrPC grants the power to criminal courts to direct that a part or whole of a
fine imposed on an offender be paid to a victim as compensation. Specifically:

Section 357(1) gives power to compensate when a fine is imposed as part of punishment,
including claims for reimbursement of expenses or claims based on loss or injury.

Section 357(3) enables courts to award compensation in cases where no fine has been imposed,
thereby widening the scope for judicial discretion.

Section 357(4) speaks of compensation being awarded during appellate or revisionary

proceedings.20

The importance of Section 357 thus lies in closure and a sense of justice firmly granted to the
victim. However, the utilization of this Section is limited in practice due to its dependence on the
conviction of the offender and the absence of any provisions for interim or immediate relief.

Judicial Interpretation: Expanding the Scope

Judicial activism has indeed played its role in ensuring that the zakat provisions of Section 357
are actually implemented. In Ankush Shivaji Gaikwad v. State of Maharashtra (2013), it was
held by the Supreme Court that courts are bound to consider the question of compensation in
every criminal case and give reasons for awarding or not awarding it. The judgment affirmed that
compensation should never be treated as a matter of secondary importance but considered an
inseparable part of delivering justice.21

Nonetheless, this remains only if there is a conviction under Section 357. Victims that are in
cases where the accused is either acquitted, offenders are not traced, or investigations are delayed
by police authorities are left out from protection under the law. Taking a predetermining view of
this lacuna, Section 357A was inserted to take shape of a strengthened, state-sponsored
compensation scheme.

20 Code of Criminal Procedure, § 357 (India).

21 Ankush Shivaji Gaikwad v. State of Maharashtra, (2013) 5 S.C.C. 360 (India).

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Section 357A CrPC: State-Funded Victim Compensation Scheme

A somewhat seismic shift in India's orientation towards victim compensation was occasioned
when Section 357A was incorporated into the Code by way of the CrPC (Amendment) Act,
2008. It alleges that every state shall, in consultation with the Central Government, prepare a
Victim Compensation Scheme (VCS). Some key provisions include:
Section 357A(1): It creates an obligation for every state government to establish a VCS.
Section 357A(2): Courts may recommend that compensation be given even where fines or
sentences are imposed.
Section 357A(4): Compensation could be paid even in cases where the offender could not be
identified/whether that person was apprehended or convicted.
Section 357A(5): The victims or their dependents may file a direct claim before the District
Legal Services Authority (DLSA).
This constitutional provision gave rise to the idea of compensation as a right as opposed to
dwindling to mere judicial discretion. It indirectly endorses a greater concern for victim welfare,
preferably including special consideration in cases of sexual assault, acid attacks, and other
heinous crimes.

Additional Provisions: Sections 357B and 357C

Two more provisions came into being after the Justice Verma Committee report and the Criminal
Law (Amendment) Act, 2013:

Section 357B CrPC: States: Compensation awarded under Section 357A shall further be in
addition to any fine imposed under any of the provisions of the Indian Penal Code referred to in
this section, viz., Section 376 D for gang rape and Section 326A for acid attacks).

Section 357C CrPC: Imposes a duty on hospitals-private or public-to provide first-aid or medical
treatment to the victim of acid attack or sexual violence without waiting for legal formalities,
neglect of which shall be a punishable offence under Section 166B of IPC.

These go to further reinforce the statutory promise to the immediate as well as the long-term
needs of victims, especially of gender-based violence.

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2.2.3 Role of NALSA: Institutionalizing Compensation Schemes

In the implementation and monitoring of victim compensation schemes, NALSA assumes the
frontline in applying its incapacity. Broadly defined by the Legal Services Authorities Act, 1987,
NALSA collaborates with the State Legal Services Authorities (SLSAs) and judiciary to define
and implement compensation parameters.

NALSA also introduced a Model Compensation Scheme for Women Victims/Survivors of

Sexual Assault and Other Crimes (2018), pursuant to directions by the Supreme Court in the
Laxmi v. Union of India (2014)22 and Nipun Saxena v. Union of India (2018)23 cases. The
scheme sets out the following compensation ranges in a structured manner:

- ₹4 lakhs to ₹7 lakhs for rape victims,

- ₹5 lakhs to ₹10 lakhs for gang rape victims,

- ₹7 lakhs to ₹8 lakhs for acid attack victims with facial disfigurement.24

Furthermore, the scheme provides for interim relief, medical treatment, psychological
counselling, legal aid, and shelter, all of which are indispensable for complete rehabilitation.
These model guidelines serve as a minimum reference level for states to either adopt or enhance
in their respective schemes.

Enforcement and Challenges in Implementation

The implementation varies from state to state despite the robust legal framework and NALSA's
magnitude of supervision. Issues include:

Delay in compensation disbursal due to bureaucratic red tape.

Victims themselves or even law enforcement or judicial officers are unaware of this.

Inadequate provision of funds to the State Victim Compensation Funds.

22 Laxmi v. Union of India & Ors., AIR 2015 SC 3662 (India).

23 Nipun Saxena v. Union of India, (2019) 9 S.C.C. 703 (India).
24 Ashish Kundu, A Critical Analysis of the Legal Aid System in India, SSRN (2023).

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In some states, the quantum of compensation is fixed arbitrarily in the absence of uniform
guidelines.

No interim relief is provided, leaving victims extremely vulnerable during the investigation and
trial period.

Another problem is that the coordination among various stakeholders such as police, courts,
medical institutions, and legal service authorities is hardly efficient, thereby defeating the entire
purpose of timely support.

Sections 357, 357A, and related provisions of the CrPC represent an evolving legal
consciousness that recognizes the victim as being a primary stakeholder in criminal proceedings.
Although these sections set out a solid framework for compensation to victims, strong voluntary
judicial engagement, institutional action by NALSA, and coordinated implementation by the
state authorities are necessary to see compensation effectively implemented. Monitoring,
generation of awareness, and funding must continue with the objective of actually turning
statutory rights into live solutions for victims all throughout India.

2.3. Role of State Legal Services Authorities (SLSAs) and Central Schemes

Structure and Mandate of SLSAs

The State Legal Services Authorities act as statutory bodies set up under the Legal Services
Authorities Act, 1987, with their major object being the provision of free and competent legal
services to weaker segments of society, so that such persons are not deprived of opportunity to
secure justice on account of economic or other disabilities. The SLSAs serve as crucial
intermediaries between the judiciary, the government, and the public, especially concerning
victim compensation schemes. Each Indian state has its own SLSA with the Chief Justice of that
High Court being the patron-in-chief to ensure judicial oversight and independence.25

25 Usha Vaidya & Siddhartha Singh Chauhan, A Study on the Legal Services Authorities Act, 1987, 1
Int’l J. Innovations Sci., Eng’g & Mgmt. 51, 51–56 (2024).

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In terms of victim compensation, the SLSAs hold a key position in executing the actual
operationalization of both the Victim Compensation Scheme (VCS) under Section 357A of the
CrPC and the guidelines framed by NALSA. SLSAs receive compensation claims and examine
them, utilize funds for victims and their families, and oversee the smooth functioning of the
compensation schemes in their territory. This decentralized design allows for the speedy
redressal at the district and state levels, with SLSAs working in tandem with DLSAs to redress
local grievances and quicken payment.

Funding and Financial Management

Funding for victim compensation schemes by SLSAs comes from multiple sources. Usually,
state governments allocate funds in their budgets for victim compensation under various heads,
sometimes additionally aided by grants-in-aid from the centre. Periodically, the Department of
Justice and the Ministry of Home Affairs provide grants-in-aid to state governments for the
enhancement of the infrastructure and funding of victim compensation schemes. Secondly,
money collected as fines and penalties under various criminal proceedings may contribute
toward victim compensation funds maintained by the SLSAs, pursuant to Section 357 of the
CrPC.26
SLSAs shall maintain separate Victim Compensation Funds so that monies collected are
appropriately ring-fenced and disbursed only for legitimate claims. Transparent financial
management and periodic financial audits should be undertaken, proper record-keeping
maintained to guard against misappropriation of funds, and ensure that funds reach bona fide
beneficiaries. Some SLSAs have also implemented online portals and digital payment modes for
processing applications faster and disbursing funds more expeditiously, although this modern
approach differs from one state to another.

Implementation of Victim Compensation Schemes by SLSAs

Following the Model Victim Compensation Scheme issued by NALSA, SLSAs shall put into
effect schemes for compensating victims, with the provisions being modified to fit the regional
socio-economic environment. The scheme is implemented in several phases: generation of
awareness amongst the public and law enforcement agencies; training of police, judiciary, and
26 Ujjwal Ray Rajbangshi & Vijay Srivastava, Legal Service Authority: The Legislative Significance, 4 Int’l
J.L. Mgmt. & Human. 3943, 3943–48 (2021).

15
legal aid officers to identify suitable victims of crime; and setting up grievance redressal
mechanisms for dealing with complaints or delays.

SLSA scrutinises the claims, determines the eligibility of victims, equates the nature of damage
and harm suffered with implications for compensation and the amount thereof. It stands
coordinating with hospital authorities, police departments, and welfare agencies for gathering all
relevant documentation and evidence in support of a claim.27 After approval, disbursal shall be
made by SLSA directly through bank transfers to recipients or their legal representatives.

Overview of State-Wise Notifications and Fund Allocations

Various victim compensation schemes have come into force in different Indian states under
Section 357A of CrPC: hence the variations in compensation sanctioned, eligibility criteria, and
rules of procedure. For example, Tamil Nadu, Maharashtra, Kerala, and Delhi have well-
established schemes with determined slabs of compensation for crimes such as sexual assault,
acid attack, and fatal accidents. Some states even go beyond the statutory minima of the Model
Scheme of NALSA by adding extra benefits for medical rehabilitation, psychological
counseling, and vocational training.
The extent of fund allocation and utilization of these compensation funds significantly differ
from one state to another, depending on factors like the political will, administrative capacity,
and rate of crime. For example, recent reports indicate that higher crime incidence coupled with
better institutional frameworks makes for a larger allocation of funds towards victim
compensation; Maharashtra has always been known to have allocated huge budgetary resources
to its victim compensation fund, with fairly quicker and higher disbursements. On the flip side,
certain other states are plagued by underfunding, which delays the releases and limits the amount
of compensation.
NALSA undertakes the task of monitoring and compiling the data with regard to state-wise fund
allocations, disbursements, and fund utilization rates and then comes up with periodic reports
with the aim of ensuring transparency and accountability. These reports highlight best practices

27 Ronita Halder, The Legal Services Authorities Act, 1987—Analysis & Developments, 3 Nyaayshastra
L. Rev. 1, 1–10 (2022).

16
and areas for improvement, thus helping in the inter-state exchange of knowledge and policy
improvements.

Challenges and Recommendations

While the protection framework and funding mechanisms remain intact, impediments obstruct
the very best functioning of SLSAs in victim compensation:
- Disparity in the state schemes which affects compensation amounts and eligibility criteria.
- Lack of awareness among victims of their entitlements under the schemes.
- Delays in bureaucratic mechanisms coupled with unnecessary procedural formalism slow down
disbursement.
- Irregular budget allocations and fines hamper sustainability.

In order to address these obstacles, it is suggested that all states adopt a uniform set of guidelines
consistent with NALSA's Model Scheme, increase budgetary allocation for victim compensation,
strengthen capacity building of legal aid officers, and install a strong monitoring system to keep
track of the disbursal of funds and their impact. In addition, integrating victim compensation
schemes with larger social welfare programs would afford a holistic treatment to victims in their
rehabilitation, be it physical, psychological, or economic.

2.4. Judicial Interpretation and Activism

Laxmi v. Union of India28 (acid attack compensation)

Acid attacks were analyzed in the landmark case of Laxmi vs. Union of India in 2015,
amplifying the need for preventive measures and support for victims. Laxmi Agarwal, herself an
acid attack survivor, filed a writ petition before the Supreme Court seeking broad-ranging
reforms. The court, in the exercise of its power, directed strict regulation of acid sales and
activities relating to its use, by requiring proper licensing and documentation and forbidding its

28 Laxmi v. Union of India & Ors., AIR 2015 SC 3662 (India).

17
sale to anyone under the age of 18 years. The court also directed immediate medical relief for
victims; compensation payable was fixed at a minimum of Rs. 3 lakhs, and the states were
directed to provide free medical treatment and rehabilitation of victims. Fast-track courts for
these cases were also ordered by the Court to give speedier justice. This judgment was a good
example of judicial activism in that it transcended the conventional layers of resolving disputes
and created an all-encompassing regulatory system that deals with both prevention regarding
acid attacks and full-scale rehabilitation of survivors.

Ankush Shivaji Gaikwad v. State of Maharashtra29

In Ankush Shivaji Gaikwad v. State of Maharashtra (2021), supreme court faced crucial issues
that are about the rights of the prisoners and custodial conditions, especially to prevent custodial
violence and for the dignity of a person who is being detained. It safeguards the principle that the
victim continues to be entitled to fundamental rights after an arrest has been made, thus the state
should ensure no inhuman treatment be made against any person in custody constitutionally. The
Supreme Court had issued several directions concerning conducting medical examination and
entry of injuries in the examination records in cases where an injury was sustained after
detention. The Court also laid down elaborate directions for the conduct of police officers during
interrogation and for the video recording of interrogations in the case of serious offenses to
ensure transparency and enhance accountability. This is a classic example of judicial activism
wherein courts have carved out elaborate procedural safeguards to protect and uphold
constitutional rights in criminal justice processes.

Nipun Saxena v. Union of India30

The Supreme Court, in Nipun Saxena v. Union of India, 2019, addressed a crucial issue
concerning the protection of the rights of persons with disabilities-the lax implementation of
disability rights legislation. The petitioner sought to challenge the failure of the authorities to
provide services that create an accessible environment for disabled persons. The Court thus,
while providing for strong measures, directed all public buildings and modes of transport to be
29 Ankush Shivaji Gaikwad v. State of Maharashtra, AIR 2013 SCW 3153 (India).
30 Nipun Saxena v. Union of India, (2019) 9 S.C.C. 703 (India).

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barrier-free. It also emphasized the matter of proper and effective implementation of the Rights
of Persons with Disabilities Act, 2016, compelling proper government authorities to undertake
regular accessibility audits of public infrastructure. It also directed the appointment of a Chief
Commissioner for Persons with Disabilities and State Commissioners for Persons with
Disabilities for monitoring compliance and enforcement of disability rights. It further stressed
that reasonable accommodation in education and employment for persons with disabilities must
be provided to ensure their inclusion as equal-opportunity citizens. The case thus marks the
judicial machinery taking a proactive step toward translating law into a set of enforceable rights
for the benefit of a marginalized community.

2.5. Other Allied Laws and Provisions

Compensation under POCSO Act, SC/ST (PoA) Act, and Motor Vehicles Act

Victim compensation in India extends beyond victim compensation under the Code of Criminal
Procedure (CrPC). Several other major legislations provide compensation to victims in their
respective contexts. This manifests the broader legal framework that attends to various forms of
harm and injustice.

The Protection of Children from Sexual Offences (POCSO) Act, 2012 31, expressly recognizes
compensation for child victims of sexual abuse. Section 33(8) 32 directs that Special Courts
constituted under the POCSO shall ensure that the child victim or his guardian is given
compensation for the physical and mental trauma suffered by the child during the commission of
the offense and also in the course of the legal process. This acts to complement the general
victim compensation scheme by targeting perhaps the most vulnerable group-children-ensuring
expeditious and adequate relief in cases involving sexual offenses.

Compensation of victims is also provided under the Scheduled Castes and Scheduled Tribes
(Prevention of Atrocities) Act, 198933 (PoA Act). Recognizing the systemic discrimination and

31 Protection of Children from Sexual Offences Act, No. 32 of 2012 (India).

32 Protection of Children from Sexual Offences Act, No. 32 of 2012, § 33(8) (India).
33 Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, No. 33 of 1989 (India).

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violence faced by the SC/ST communities, the Act provides for relief and rehabilitation to
victims of atrocities. The Act mandates state governments to formulate schemes for the welfare
and rehabilitation of victims, including compensation for damage and injury. These provisions
are meant to redress in terms of both recompense and social justice, for injuries inflicted upon
the victims of caste-based violence.

The Motor Vehicles Act, 198834, similarly, provide for compensation to victims of road
accidents. The Act has been amended several times with the object of making compensation
payments faster and more effective for victims and their families. The Motor Accident Claims
Tribunal (MACT) empowers the victim to claim financial compensation for injuries, disabilities,
or death caused by vehicular accidents. It is another separate but related channel of victim
compensation, focusing on accidents and injuries instead of crimes.

Overlap and Conflict with the Victim Compensation Scheme (VCS)

While such allied laws strengthen the framework of victim compensation in general, they present
certain problems regarding overlaps and conflicts with the Victim Compensation Scheme
established under Section 357A of the CrPC. The VCS is a broader umbrella scheme formed
jointly by the central and state governments to compensate victims of various crimes that are not
covered under any special statutes such as POCSO or the Motor Vehicles Act.

One major area of overlap concerns cases of victims who may be compensated under more than
one statute. For example, the sexual assault of a child may attract compensations under both the
POCSO Act and the VCS. Likewise, the victim of an accident who suffered bodily injuries may
claim compensation under the Motor Vehicles Act and also under the general compensation
scheme. This multiplicity at times causes procedural confusion, delays, and jurisdictional
uncertainties as to which authority is to disburse compensation.

Besides, conflict can also arise in the matter of the quantum of compensation and the procedural
requirements. Statutes of a specialized nature such as the POCSO Act and the SC/ST PoA Act
frequently cast upon themselves one or more of the following attributes: a timeline, an authority,
or a specific mode of implementing compensation so that there will be no real chance of its

34 Motor Vehicles Act, No. 59 of 1988 (India).

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timely disbursement under the general guidelines of VCS. The difference in the procedure and
time for disbursement, in reality, causes a greater disservice to the victim in need of quick relief.
Similarly, the difference in procedures poses a challenge for authorities who are supposed to
implement these schemes.

Efforts toward harmonizing the various schemes and rationalizing the compensation dispensation
have been made in addressing these issues. Courts and policymakers emphasize coordination
between statutory authorities and legal clarity on the primacy or concurrent applicability of the
different compensation mechanisms to ensure that victims are adequately compensated without
unnecessary delays and for compensation that is both timely and non-duplicative.

2.6. Comparative Overview with Select Countries

United Kingdom’s Criminal Injuries Compensation Scheme

Being one of the oldest and best-structured systems in the world, the Criminal Injuries
Compensation Scheme (CICS) was established in 1964. The scheme, administered by the
Criminal Injuries Compensation Authority (CICA), compensates victims of violent crimes for
violent injuries, which may be physical or psychological, arising due to offenses such as assault,
sexual violence, and homicide. Compensation usually occurs in many countries by way of a
court judgment or order, while the UK scheme exposes victims to much more autonomy with the
option to approach the authority on their own to claim compensation. This victim-based
approach allows for quicker relief to victims and minimizes their reliance on the criminal justice
process. Compensation is based on a tariff system, wherein fixed amounts have been established
in relation to the nature and extent of injury, thereby allowing for a more streamlined decision-
making process with fewer delays. 35The behavior of the victim at the time of the offense was
also evaluated, with instances of contributory negligence or voluntary involvement leading to the
exclusion of compensation. This shows that an efficient system for victim compensation
necessitates an independent and specialized administrative agency and a well-conceived
standardized system.

35 David Miers, Looking Beyond Great Britain: The Development of Criminal Injuries Compensation, in
Handbook of Victims and Victimology 353, 353–78 (Willan 2012).

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Germany’s Restorative and Integrated Approach

Germany has adopted the comprehensive approach of state compensation for victims of a violent
crime and an active social welfare scheme. The German legislation ensures that the victim is
provided immediate monetary help for treatment, rehabilitation, and compensation for loss of
earnings under the provisions of the Crime Victims Compensation Act
(Opferentschädigungsgesetz). Equally important is the integration of this compensation system
with health insurance and social security benefits to provide comprehensive welfare support.
However, Germany also believes in restorative justice whereby offender accountability is
encouraged along with victim-offender mediation in cases where this is appropriate. 36 This idea
of compensating victims while simultaneously providing for social protection and restorative
processes is one that can teach a lot to India, which implies that victim support should not just be
about providing monetary help but should also include measures for rehabilitation and
reintegration.

South Africa’s Victim Empowerment and Reparations Framework

The post-apartheid contextualization of victim compensation pays heavy emphasis on

empowerment and restorative justice. The Victim Empowerment Programme (VEP) runs parallel
to the Victim-Friendly Court System to ensure that victims of crime are paid compensation with
the provision of psychological support, legal aid, and protective measures. Within the
constitution of the country lies the Victims’ Charter that guarantees victims' rights to receive
information, protection, and participation in the criminal justice process. Likewise, reparations
systems in South Africa embody the need to redress incidents of violations of human rights and
structural inequalities through avenues of finance and social programs since the time of
apartheid. This all-encompassing approach of the victimization system, marrying compensation,
empowerment, and participation, offers very important lessons for India in restructuring its legal
framework, particularly in redressing the concerns of marginalized communities. 37

36 Christoph Willms & Rehzi Malzahn, The “Deadly Embrace” of Restorative Justice in Germany, in
Restorative Justice at a Crossroads 189, 189–210 (Routledge 2024).
37 Hugo Van der Merwe, Reparations Through Different Lenses: The Culture, Rights and Politics of
Healing and Empowerment After Mass Atrocities, in Reparation for Victims of Crimes Against Humanity
200, 200–18 (Routledge 2014).

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United States’ Diverse and State-Based Systems

Compensation programs and programs are governed by the states in the U.S., accounting for
abstraction structures and eligibility criteria. Most states compensate victims under the Victims
of Crime Act (VOCA), with federal-grant revenues, for a maximum of 12 bills: medical
expenses, counseling, lost wages, and funeral expenses. Unlike in India, when the awarding of
any compensation to the victim depends on the criminal prosecution, most of the U.S. programs
give a victim an option to avail of benefits regardless of whether or not the offender has been
prosecuted for the crime-the needs of the victim come first. 38 Another provision is that some
states have established Crime Victims' Rights Laws guaranteeing rights to restitution for victims,
including participation and protection. The decentralized U.S. system serves as a case study of
advantages and disadvantages posed by localized administration of compensation, ensuring the
need for constant yardsticks and ongoing awareness campaigns so that right to access on equal
grounds are not accorded based on location.

Lessons for India

The remuneration mechanism in India can benefit from certain best practices demonstrated by
these systems around the world. The U.K. independent, tariff-based compensation authority
would rank very highly on efficiency and victim-centricity, minimizing delays and entanglement
in legalizations. Turning compensation into a top-up for health and social welfare benefits as
witnessed in Germany conveys that the means of assistance to a victim must be more of a
medical and social nature rather than mere financial relief. 39 The South African style of
empowering victims and ensuring their participation in the process brings home the point that the
psychosocial needs emanating from victimization ought to be addressed, especially for
impoverished sectors. The experience in the United States shows the benefits and drawbacks of
decentralized administration-and-the-boards, while stressing on the need for uniform standards,
all-weather outreach, etc. Thus, drawing upon these lessons probably would bring India one step

38 Robyn Holder, Lorana Bartels, Helen Taylor & Kandie Allen-Kelly, Projects Assisting Victims’
Experience and Recovery (PAVER) (2021).
39 Gabrielle Appleby, The Challenges of Providing Legal Services to Government, in Public Sentinels
141, 141–68 (Routledge 2016).

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closer to strengthening the victim compensation arenas into accessible, all-embracing, and
responsive mechanisms able to cater to the contrasting needs of its victims.

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