VICTIM COMPENSATOIN SCHEME IN INDIA: LAW ON PAPER VS REALITY

Ritik Agrawal
1 hour ago
7 min read

Hemakshi Gupta

Maharshi Dayanand University Centre For Professional And Allied Studies, Gurugram (MDU-CPAS)

Editor: Sakshi Soni

INTRODUCTION

For far too long, the Indian criminal judicial system has been harsh upon the victims. In the light, it might look that the prosecution and trial are done for justice to the victim. However, backstage the victim suffers the most. The offender centric approach of the judiciary, renders the victim and their dependants to suffer physically, psychologically and economically. This is because in most cases punishing the offender is prioritized than to provide relief to the victim. It creates a gap and an imbalance within the justice delivery system.

This complication is addressed by the Central Victim Compensation Fund Scheme (CVCF)¹^[1]. It is a framework to compensate the victims on the ground of various injuries, loss and death with respect to acid attack, rape, human trafficking, disabilities and burns affected on them. It also finds place in the Bharatiya Nagarik Suraksha Sanhita, 2023. Major focus of this provision is to shift the approach of the judicial system towards a more victim centric model.

Despite the recognition and efforts, there are various underlying contradictions to the practical implementation. Several shortcomings in the implementation have created distance between law on paper and law in reality. This article, thus, will deal with the concept of victim compensation and its applicability in India.

VICTIM COMPENSATION SCHEME-

Before understanding about the origin, development and functioning of the scheme; we shall understand who is a victim. Victim under criminal law means “a person who has suffered any loss or injury caused by reason of the act or omission of the accused person and includes the guardian or legal heir of such victim”.[2]Thus, a victim is anybody who suffers as well as the people around them. Somewhere in the process of punishing the offender, victim sensitization was sidelined. Justice delivery system was inclined towards investigation, prosecution and punishing the convict. The essence of providing relief to the victim was lost.

To counter the suffering, this scheme was inserted in the Criminal Procedure Code and now finds its place in Bharatiya Nagarik Suraksha Sanhita,2023. It states that every state government in coordination with the central government shall prepare a scheme for providing funds for compensation to victims who have suffered loss or injury as result of crime and require rehabilitation. In year 2009, this provision was inserted in the Criminal Procedure Code, 1973. Then, it is now well retained in section 396 of Bharatiya Nagarik Suraksha Sanhita. There were several instances which suggested the setting up of this scheme. Various factors which lead to the establishment of scheme: -

· United Nations Declaration of Basic Principles of Justice, 1985[3]- on 29 November 1985, India became a party to this declaration. This declaration revolves around the protection of victims, justice and fair treatment to them and states that the state shall provide them with adequate compensation if the offender is unable to afford. India presupposes to inculcate these provisions to the national law.

· Malimath Committee[4]- formed in the year 2000 and chaired by Justice V S Malimath, it reviewed the investigation, trial procedures and sentencing guidelines. It recommended that the victims have a right to adequate compensation. It stated- “receive compensation from the criminal court itself for injuries suffered as well as appropriate interim reliefs in the course of proceedings”.²

· 226^th law commission report, 2009[5]- the report on “the inclusion of Acid Attacks as Specific offences in the Indian Penal Code and a law for compensation for victims of crime”. it recommended the insertion of section 326A(IPC) for the offence for admissibility along side a comprehensive law for victim compensation and rehabilitation.

These instances to the awakening the government to make legislative changes in the criminal laws.

The changes were also inspired by judgments like Shri Bodhisattwa Gautam Vs Miss Subha Chakraborty (1995)[6]- the hon’ble Supreme Court observed that the victim shall be compensated by the court on conviction of the offender. It also highlighted for the Criminal Injuries Compensation Board to ensure victim’s compensation. The compensation to be based upon the finalisation of the scheme by the central government.

These situations led to changes in the criminal laws- Indian Penal Code, Criminal Procedure Code and the Evidence Act. Currently, the insertions are retained in the Bharatiya Nyaya Sanhita, Bharatiya Nagarik Suraksha Sanhita and the Bharatiya Sakshya Adhiniyam.

LEGAL FRAMEWORK AND PROVISIONS-

· The Bharatiya Nyaya Sanhita, 2023- the offences against women and affecting human body provide for the compensation to the victim.

i. The punishment for rape (u/s 65)[7]- states that the fine shall be just and reasonable to meet the medical expenses and rehabilitation of the victim.

ii. Similar punishment is provided for the offence of gang rape[8]. The fine is imposed on each of the persons committing the offence.

iii. Punishment for voluntary hurt caused by the use of acids (u/s 124)[9]- it also provides that the fine must be just and reasonable to meet the medical expenses of the victim.

Under all these provisions, the amount is directly paid to the victim.

· The Bharatiya Nagarik Suraksha Sanhita (2023)- the various section of this act states for the victim compensation scheme-

i. Defining the term victim[10]

ii. Providing for the whole scheme for victim compensation-[11] its key components include the state to fund for the scheme, legal service authorities to decide the amount of compensation and ensuring the compensation even if the offender is not traced or identified.

iii. Treatment of the victims-[12] it directs all he hospitals to provide with free medical treatment or aid to the victims of rape, gang rape, acid attacks and to minor victims of sexual harassment under POCSO.

iv. Prohibition of appeal against the order of court, unless permitted by the law. The provision is victim centric as it entitles the victim to appeal. [13]

· Legal Services Authorities[14]- the district or the state Legal Services Authority shall decide the amount of the compensation and disburse the funds under the scheme. The victim can apply to the DLSA/SLSA with FIR and medical records for the disbursement of the funds allotted by the state.

· Other legislations- there are several other statutes which provide for the victim compensation in case of crime taking place. The Motor Vehicles Act, the fatal accidents act, Protection of Children from Sexual Offences Act, Protection of Women from Domestic Violence Act.

These legislations are victim centric. They focus upon ensuring delivery of justice as well as aiding the victim gain adequate compensation and relief for the hurt caused to them. However, the law on paper cannot hide the disparity in the implementation of laws in real life. The already suffering victims, face the aftermath of the proceedings with several problems.

REALITY OF THE LAW-

· Recognition of the compensation to be provided but inadequate implementation.

· Delay in the judgments - The case of Laxmi Vs UOI (2015)[15] spanned for over a decade. The offence took place in 2006, however was settled in 2014. The delay in decision making further delays the execution and amendments in law.

· Failure to reporting and registering of the offences. – As per the data given by NCRB[16], the offences of rape reported in 2020 was 28046, in 2021 was 31677and in 2022 was 31516. However, the estimated number of unreported such cases is much higher. It denotes that the victim is shushed even before reaching the authorities to get compensation and justice.

· Suspension of punishments to the convicts- the compensation does not only include monetary compensation; but also includes the moral relief that the offender is punished. The suspension of the term of punishments however, deters the moral and psychological safety of the victim. For eg. the suspending of the term of the convicted MLA in Unnao rape case.[17]

· Lack of uniformity- the scheme is not uniformly implemented throughout the nation. In 2016, the budget[18] of 20000 lakhs (in rupees) was allocated by the various states in India. This amount was divided amongst the states and UTs and the quantum was then set. Example- Haryana was provided with 550 lakhs, Uttar Pradesh with 2810 lakhs, west Bengal with 1265 lakhs and so on.

The difference creates the gap in actual funds provided to the victims. Hence, hampering the main focus of the scheme.

Therefore, the initiative to provide and aid the victims with sufficient relief is lacking on various horizons.

CONCLUSION

The scheme in India embodies a progressive shift towards victim sensitization. It enables the justice to revolve around the victim and provide with restorative principles. The legal framework and judicial support provide a strong foundation. The scheme’s implementation and other shortcomings reveal significant disconnect between law on paper and reality. Addressing this gap requires sustained institutional commitment, judicial vigilance, and administrative reform. The burden if managed well can lead to the success of this scheme. The efforts of the various judicial departments from the ground level can ensure that the scheme is implemented satisfactorily. Uniform standards in the legislations, the execution by states and well maintenance of the funds will also be beneficial for the scheme.

Hence, the success of any such initiative can be ensured only via collective effort.

REFERENCES

[1] Ministry of Home Affairs, Press Information Bureau, (notified on 14-Oct-2015)

[2] Bharatiya Nagarik Suraksha Sanhita,2023 (section 2 (1)y)

[3] Declaration of Basic Principles of Justice for Victims of Crime and Abuse of Power, UNGA (issued on 29-Nov-1985)

[4] Ministry of home affairs, Report by Committee on Reforms of Criminal Justice System (March 2003)

[5] Law Commission Of India, The Inclusion of Acid Attacks as Specific Offences in the Indian Penal Code and a law for Compensation for Victims of Crime, (July 2009)

[6] Shri Bodhisattwa Gautam vs Miss Subhra Chakraborty, 1996 AIR 922 (1995)

[7] The Bharatiya Nyaya Sanhita, 2023, Proviso section 65

[8] The Bharatiya Nyaya Sanhita, 2023, provis0 section 70

[9] The Bharatiya Nyaya Sanhita, 2023, Section 124 clause 1

[10] The Bharatiya Nagarik Suraksha Sanhita (2023), section 2(1)(y)

[11] The Bharatiya Nagarik Suraksha Sanhita (2023), section 396

[12] The Bharatiya Nagarik Suraksha Sanhita (2023), section 397

[13] The Bharatiya Nagarik Suraksha Sanhita (2023), section 413

[14] The Bharatiya Nagarik Suraksha Sanhita (2023), section 396

[15] Laxmi vs Union Of India & Ors, AIR 2015 SUPREME COURT 3662

[16] Ministry of Home affairs, Annexure-II, (11-Feb-2025)

[17] Delhi High Court Suspends Life Sentence Of Kuldeep Singh Sengar In Unnao Rape Case, Live Law, (23-Dec-2025)