Victim Compensation Fund

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Introduction

A Victim Compensation Fund (VCF) is the State-created financial mechanism to provide immediate, timely and rehabilitative relief to victims of crime and their dependents. In India, the VCF is a statutory response to the reality that many victims of violent offences — including rape and acid attacks — require prompt medical care, rehabilitation, counselling and economic support that cannot wait for the conclusion of criminal proceedings. For practitioners, mastery of the law and procedure around victim compensation is indispensable: it is often the only practical route to secure urgent relief for clients, to supplement or substitute slow civil remedies, and to translate judicial recognition of harm into concrete assistance.

Core Legal Framework

  • Code of Criminal Procedure, 1973
  • Section 357 CrPC — empowers courts to direct payment of compensation or costs to victims as part of sentence. Courts can order compensation to meet medical expenses, loss of earnings, and other injury-related costs.
  • Section 357A CrPC — statutory mandate for victim compensation schemes. The key operative thrust: “The State Government shall prepare a scheme for providing funds for the purpose of enabling the payment of compensation to the victims or their dependents who have suffered loss or injury as a result of the crime…” (CrPC, s. 357A). The provision contemplates State/UT schemes, modalities for interim relief, and a role for legal services authorities.
  • Indian Penal Code, 1860
  • Sections newly inserted by the Criminal Law (Amendment) Act, 2013 — for acid attacks: Section 326A (causing grievous hurt by acid) and Section 326B (attempt to cause grievous hurt by acid). These create specific offences that inform the victim’s entitlement to compensation under State schemes.
  • Administrative architecture
  • State Victim Compensation Schemes and guidelines — framed by State Governments (often prepared with or implemented by the State Legal Services Authority (SLSA) and District Legal Services Authorities (DLSA)). NALSA and some States have issued model schemes/guidelines for implementation, eligibility, quantum, and procedural filing.
  • Ancillary sources
  • Judicial pronouncements under Article 21 directing payment of compensation for violation of fundamental rights (see Landmark Judgments below), and statutory schemes in specialised laws (e.g., schemes for compensation in trafficking, for child victims under POCSO-related directions) inform application and interpretation of victim compensation law.

Practical Application and Nuances

How the concept operates in practice — stepwise, and with common wrinkles:

  1. Two parallel routes to compensation
  2. Judicial order under Section 357 CrPC: the sentencing court (magistrate/sessions) can order compensation to be paid by the accused as part of the sentence. This is effective when the accused is convicted and possess some payability (fine recoverable, assets).

  3. State-funded remedy under Section 357A: even where the accused is not convicted, not traced, or unable to pay, the State’s victim compensation scheme is the practical route to obtain funds for immediate medical/rehabilitative relief. Most practitioners rely primarily on this route for urgent needs.

  4. Timing: interim relief and final claims

  5. Courts have repeatedly awarded interim compensation pending trial/appeal. Practically, the victim’s lawyer should move the trial court, often at the first hearing following FIR/charge-sheet, for interim relief — citing medical urgency and the existence of the State Scheme.

  6. Simultaneously, file a claim before the DLSA/SLSA under the relevant State Victim Compensation Scheme. DLSAs routinely process applications for interim and final compensation; delay or inaction by DLSA is independently challengeable before High Courts.

  7. Documentary evidence: what works

  8. FIR / police station entry and case number
  9. Charge-sheet / copy of complaint (if available)
  10. Medico-legal report (MLR), discharge summaries, prescriptions, imaging, bills and estimates for ongoing treatment (e.g., reconstructive surgery for acid attack)
  11. Photographs of injuries, identity proof, proof of residence
  12. Income proof for victim/dependents (to establish need)
  13. Affidavit detailing facts, losses, and claim particulars
  14. For acid-attack victims: plastic surgery/prosthetic cost estimates, psychiatric assessment, rehabilitation plan

  15. For sexual offences: Spermatozoa/forensic reports (if relevant), POCSO-compliant documentation for minors, counselling certificates
    Failure to assemble a contemporaneous medical record and certified bills is the most common ground for rejection/delay.

  16. Quantum and heads of relief

  17. Schemes provide for heads such as immediate medical expenses, interim subsistence, travel, counselling, vocational training, prosthesis, economic rehabilitation and lump-sum compensation for loss of dependency or permanent disablement.

  18. Quantum varies significantly between States and between schemes; it is neither uniform nor exhaustive. Do not expect a single national figure.

  19. Conviction not always necessary

  20. State schemes commonly permit payment where “offence is proved” or where there is credible proof of victimisation, even if accused is acquitted or untraced. This is crucial where perpetrators escape conviction but the victim needs urgent care.

  21. Interaction with awards in criminal/civil courts

  22. Compensation paid by the State does not foreclose a civil suit for redress or a criminal court’s order for compensation; set-off principles may apply (i.e., courts may take into account amounts already received when ordering additional compensation).

  23. If a court orders the accused to pay compensation and he/she pays, State may have a right of recovery if it previously disbursed ex gratia (check scheme terms).

  24. Administrative mechanics

  25. Most State schemes allocate funds to DLSA for disbursement; DLSA processes applications, calls for medical verification, and sanctions payments. In many States, SLSA is the appellate/overseeing authority.

Landmark Judgments

  • Nilabati Behera v. State of Orissa, (1993) 2 SCC 746
  • Principle: The Supreme Court recognised compensation as a component of Article 21 remedies where State action causes grievous violations (custodial death here). It held that courts exercising writ jurisdiction can direct payment of compensation as a remedy, thereby embedding monetary relief as part of fundamental-rights jurisprudence. Practical import: constitutional remedies can be invoked for state failure to compensate victims; criminal remedies are not the sole avenue.
  • Laxmi v. Union of India (Writ Petition (Criminal) No. 202 of 2013)
  • Principle: The Supreme Court responded to public interest litigation by directing regulation of sale of acid and issuing directions concerning medical treatment and relief for acid attack survivors. The judgment reinforced the State’s duty to provide immediate medical treatment and rehabilitative support to acid victims, and highlighted the role of State schemes in providing relief.
  • M.C. Mehta v. Union of India, (1987) 1 SCC 395
  • Principle: Although an environmental case, it crystallised the compensatory and remedial role of public law, including the principle that courts can impose liability on the State/private parties to rehabilitate victims. The analogy is important: courts will use public law remedies (including compensation) creatively where statutory machinery is insufficient.

Strategic Considerations for Practitioners

  1. Early hybrid approach

  2. Immediately file for interim relief before the trial court (invoke Section 357 CrPC) and, in parallel, lodge a claim with the DLSA under the State Victim Compensation Scheme. This dual pathway reduces delay and maximises chances of relief.

  3. Drafting the application: be specific and practical

  4. Pray for interim expenses (with attachments of bills/estimates), rehabilitation measures (prosthesis, counselling, vocational training), and a final lump-sum under the Scheme.

  5. Attach a concise medico-legal note from treating doctors outlining future treatment needs and estimated costs — courts give weight to contemporaneous medical opinion.

  6. Leverage constitutional writs if State default

  7. If the State or DLSA refuses or dilly-dallies, a Public Interest Litigation or writ petition under Article 226/32 alleging violation of Article 21 can produce early orders for compensation; cite Nilabati Behera and M.C. Mehta.

  8. Use evidence strategically

  9. Photographs, MLR, bills, discharge summaries and doctors’ statements are decisive. For sexual offences, ensure POCSO-compliant records for minors and certificate of counselling.

  10. For acid attacks, produce quotes for reconstructive surgery, prosthesis and long-term rehabilitation plans. Courts have frequently emphasised rehabilitation beyond one-time payment.

  11. Be cautious about double recovery

  12. If the accused is convicted and ordered to pay compensation, ensure clarity in pleadings about amounts already received from State schemes to avoid disputes over set-off later.

  13. Appeals and review

  14. If the DLSA rejects a claim, the SLSA and High Courts are the next recourse; file expedited proceedings. Many High Courts have issued directions requiring SLSAs to process claims within fixed time-limits.

  15. Practical pitfalls to avoid

  16. Missing or weak medical documentation
  17. Delay in filing DLSA applications (check limitation in State scheme)
  18. Failure to seek interim relief when treatment is time-sensitive
  19. Treating State compensation as a substitute for civil claim reflexively — both can and should be pursued if full redress is required

Practical checklist (quick reference for filing a compensation claim)
– FIR and case number; status (charge-sheet reference)
– Medico-legal report (MLR) and discharge summary
– Detailed medical bills and future cost estimates
– Identity proof and residence proof of victim
– Income proofs (of victim and dependents)
– Affidavit narrating incident, injuries and losses
– Photographs of injuries and any relevant CCTV extracts
– Doctor’s certificate on disability/permanent disfigurement (if any)
– Vakalatnama and power of attorney
– Draft prayers: interim medical expenses, interim subsistence, final lump-sum, rehabilitation assistance and counselling support

Sample prayer language (concise)
– “An interim direction for immediate medical expenses of Rs. _; and/or interim subsistence of Rs. _ per month; and/or release of funds under the State Victim Compensation Scheme to meet the costs of reconstructive surgery, prosthesis and rehabilitation; and final payment of compensation as per Scheme norms/to be quantified at hearing.”

Conclusion

The Victim Compensation Fund is a pragmatic and constitutionally grounded tool to translate judicial concern into tangible relief for victims of crime. For practitioners, the essential skillset is procedural agility: secure interim relief from courts promptly, parallelly pursue DLSA/SLSA claims under the State Scheme, and be meticulous about medical and financial documentation. Where State machinery fails or delays, invoke constitutional remedies — courts have repeatedly affirmed their power to order compensation as part of Article 21 protection. Finally, remember that compensation is not merely monetary; well framed claims combine urgent medical relief, long-term rehabilitation, counselling and vocational measures — the components that truly restore a victim’s dignity and capacity to lead a life with minimal disruption.