Victim compensation scheme under Section 396 BNSS (earlier Section 357A CrPC)


Victim compensation scheme

The victim compensation scheme under Section 357A of the Code of Criminal Procedure, 1973, now Section 396 of the Bharatiya Nagarik Suraksha Sanhita, 2023, lets a victim or dependents claim from a State-funded scheme run through the Legal Services Authorities, even when the accused is acquitted, discharged, or never traced. Section 357 is the separate route, where the trial court orders the convicted offender to pay.


In a late-2025 order, the Supreme Court directed all Special and Sessions Courts across the country to pass specific directions for victim compensation in eligible cases, so that the Legal Services Authorities can release the money without victims filing separate applications (Jyoti Praveen Khandpasole v. Union of India). The Court also asked the High Courts and State Judicial Academies to train judges on Section 357A CrPC and its BNSS successor, Section 396. It acted on a familiar failure: courts disposing of criminal cases without ever recording a compensation direction, which leaves victims to chase relief on their own.

This article explains the victim compensation scheme under Section 357 and 357A CrPC, how it now reads under Sections 395 and 396 BNSS, who can claim, how to apply before the Legal Services Authorities, and what the Supreme Court has held.



Section 357 and Section 357A CrPC: the two routes to victim compensation

Section 357 and Section 357A of the Code of Criminal Procedure, 1973 create two separate routes to victim compensation. Under Section 357, the trial court orders the convicted offender to pay, usually out of the fine imposed as part of the sentence. Under Section 357A, the State pays the victim from a dedicated compensation fund, and that payment does not depend on the offender being caught or convicted.

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Keeping the two apart matters because they answer different problems. Section 357 works only when there is a conviction and an offender who can pay. Section 357A was written for the cases Section 357 cannot reach: the offender who is never traced, the trial that ends in acquittal, or the convict with nothing to pay from.

Section 357 CrPC: compensation the court orders

Section 357 CrPC lets the court that convicts an accused order compensation to the victim, either out of the fine imposed or, where the sentence carries no fine, as a separate amount the offender must pay. The power is exercised at the time of sentencing, and the compensation is meant to cover loss or injury caused by the offence.

The limits of the section are built into it. It runs on a conviction, so an acquittal ends it, and it runs on the offender’s ability to pay, so an insolvent convict leaves the victim with an order that yields nothing. Section 357B CrPC, now Section 397 BNSS, adds that for offences such as acid attack and rape the compensation the State pays is in addition to the fine paid to the victim, not a substitute for it.

Section 357A CrPC: the Victim Compensation Scheme run by the State

Section 357A CrPC requires every State, in coordination with the Central Government, to prepare a scheme to compensate victims who have suffered loss or injury from an offence and need rehabilitation. Parliament inserted it by the Code of Criminal Procedure (Amendment) Act, 2009, precisely because Section 357 left too many victims uncompensated. The money comes from a State fund, and the District Legal Services Authority or State Legal Services Authority decides and disburses the amount.

The scheme detaches compensation from the outcome against the accused. A victim can be paid whether the trial convicts, acquits, or never begins because the offender was not found. That single shift, from offender-funded to State-funded relief, is what makes Section 357A the backbone of victim compensation in India.

How Section 357 and 357A CrPC map to Sections 395 and 396 BNSS

Section 357 CrPC now reads as Section 395 BNSS and Section 357A CrPC now reads as Section 396 BNSS, with the substance carried across almost unchanged when the Bharatiya Nagarik Suraksha Sanhita, 2023 came into force on 1 July 2024. The renumbering is the main visible change; the machinery of court-ordered compensation and the State-funded scheme survives intact.

The related provisions moved together. Section 357B CrPC, on compensation in addition to the fine for certain offences, is now Section 397 BNSS, and Section 357C CrPC, on free first-aid and medical treatment of victims by hospitals, is now Section 398 BNSS. The definition of a “victim” that all of these depend on shifted from Section 2(wa) CrPC to Section 2(1)(y) BNSS, and it still covers the person who suffered loss or injury along with the victim’s guardian and legal heirs.

For anyone reading an older judgment or a State scheme drafted before July 2024, the practical rule is simple. The section numbers changed, but a holding on Section 357A applies to Section 396, and a State victim compensation scheme framed under Section 357A continues to operate under Section 396 until the State revises it.

CrPC to BNSS: victim compensation provisions mapped

The same machinery, renumbered when the BNSS took effect on 1 July 2024

CrPC, 1973 BNSS, 2023 What it covers
Section 357 Section 395 Court orders the convicted offender to pay, usually from the fine
Section 357A Section 396 State-funded Victim Compensation Scheme run through the Legal Services Authorities
Section 357B Section 397 Compensation in addition to the fine for acid attack and rape offences
Section 357C Section 398 Free first-aid and medical treatment of victims by hospitals
Section 2(wa) Section 2(1)(y) Definition of a victim: the person harmed, plus guardian and legal heirs

Who can claim victim compensation under Section 357A?

A victim who has suffered loss or injury from an offence, or the victim’s dependents, can claim compensation under Section 357A, and the claim does not turn on whether the offender is convicted. The definition of a victim covers the person harmed by the act charged, and it extends to the guardian and legal heirs, which is what lets a dependent claim where the victim has died.

Eligibility rests on harm and need for rehabilitation, not on the strength of the prosecution. The scheme asks whether the person suffered loss or injury from an offence and requires rehabilitation, and if the answer is yes, the Legal Services Authority can assess and award compensation regardless of the stage or result of the criminal case.

When the accused is acquitted, discharged, or never traced

Compensation under Section 357A stays available even when the trial ends in acquittal or discharge, or when the offender is never traced or identified. This is the feature Section 357 lacks, and it is written into the section itself. Where the offender is not traced but the victim is identified, and where no trial takes place, the victim can apply directly to the State or District Legal Services Authority for an award.

The difference between an acquittal and a discharge does not close the door either, since both leave the offender unpunished and the victim uncompensated by any Section 357 order. iPleaders sets out how those two outcomes differ in its explainer on the difference between discharge and acquittal under the CrPC and BNSS. In both situations, the Section 357A route remains open.

Women, minors, and POCSO victims

Women survivors of sexual offences and child victims under the Protection of Children from Sexual Offences Act, 2012 are covered by a dedicated compensation schedule that the National Legal Services Authority framed. The Supreme Court, in Nipun Saxena v. Union of India, (2019) 2 SCC 703, directed that this scheme operate as the guideline for courts awarding compensation, and it extended the scheme to child victims of sexual abuse where no separate scheme existed under the POCSO Rules.

Minor victims are treated more generously within the schedule. The scheme sets the compensation for a minor at fifty per cent above the minimum fixed for the corresponding offence, recognising the longer-term harm to a child. The award still runs through the same Legal Services Authority machinery that governs adult claims.

How to claim victim compensation before the DLSA and SLSA

To claim victim compensation, the trial court recommends an amount to the District or State Legal Services Authority, or, where the offender is untraced, the victim applies directly to that Authority, which then holds an enquiry and disburses the award. The route depends on whether a criminal case is running and whether the offender has been found.

The process runs in a few clear stages:

  1. Court recommendation. At the end of a trial, the court may recommend compensation to the DLSA or SLSA, and it can do so whether the case ended in conviction, acquittal, or discharge, if it finds the victim needs rehabilitation.
  2. Direct application. Where the offender is not traced or identified but the victim is, the victim or dependents apply directly to the State or District Legal Services Authority, without waiting for any court order.
  3. Enquiry into quantum. The Legal Services Authority conducts an enquiry, and after being satisfied about the loss and the need for rehabilitation, fixes the quantum of compensation under the State scheme.
  4. Award and disbursal. The Authority passes the award and disburses it from the victim compensation fund, and it can order immediate first-aid or medical benefit free of cost.

A victim who has not yet started the criminal process begins with a first information report, which iPleaders covers in its guide on how to file an FIR online and offline under Section 173 BNSS. Where the case is already in court, the compensation question sits at the sentencing and disposal stage, which is mapped in the iPleaders walk-through of the stages of a criminal trial in India under the BNSS.

Can interim compensation be paid before the trial ends?

Yes. A criminal court can recommend interim compensation once it has taken cognizance, and the Supreme Court has held that this can be done even while the court is considering the accused’s bail. In Suresh v. State of Haryana, (2015) 2 SCC 227, the Court held that every criminal court is obliged to consider interim compensation to a victim after cognizance, and that there is no bar to paying it at the bail stage once the victim is identified; it awarded ten lakh rupees as interim compensation for two deaths.

Interim relief exists because rehabilitation cannot always wait for a verdict that may take years. Alongside money, Section 357C CrPC, now Section 398 BNSS, requires hospitals to provide free first-aid or medical treatment to victims of specified offences, so that immediate care does not depend on the compensation award coming through first.

Time limit and how much compensation you can expect

The time limit to apply is fixed by each State’s scheme, and the amount is set by the State schedule with the NALSA scheme acting as the floor. There is no single national deadline, so the limit has to be read from the scheme of the State where the offence occurred. Some schemes run the clock for three years from the offence or the end of the trial, while others set a shorter window that the Legal Services Authority can extend for sufficient cause.

The amounts are governed by the NALSA Compensation Scheme for Women Victims or Survivors of Sexual Assault and Other Crimes, 2018, which States use as a minimum. Under that schedule, rape carries a minimum of four lakh rupees and a maximum of seven lakh, gang rape a minimum of five lakh and a maximum of ten lakh, and an acid attack causing disfigurement of the face a minimum of seven lakh and a maximum of eight lakh. These are floors set for the sexual-offence and acid-attack categories, and a State scheme can fix its own schedule for other offences, which is why two victims of similar crimes in different States can receive different sums.

Claiming victim compensation: the route and the amounts

How a claim reaches the Legal Services Authority, and the NALSA 2018 floors

1

The trial court recommends compensation to the District or State Legal Services Authority, or, where the offender is untraced, the victim applies directly to the Authority.

2

The Legal Services Authority holds an enquiry into the loss and the need for rehabilitation.

3

It fixes the quantum of compensation under the State victim compensation scheme.

4

It disburses the award from the victim compensation fund, and can order immediate free first-aid or medical care.

NALSA 2018 amount floors (States use these as the minimum)

Offence Minimum Maximum
Rape Rs 4 lakh Rs 7 lakh
Gang rape Rs 5 lakh Rs 10 lakh
Acid attack (facial disfigurement) Rs 7 lakh Rs 8 lakh
Minor victim +50% of the minimum per schedule

Is the court bound to award victim compensation?

In effect, yes: the Supreme Court has held that a criminal court must apply its mind to the question of compensation in every case and record reasons if it declines, and a 2025 order now requires trial courts to pass compensation directions so the money actually reaches victims. The duty is to consider compensation, not to award it in every case, but silence is not an option.

The governing authority is Ankush Shivaji Gaikwad v. State of Maharashtra, (2013) 6 SCC 770, where the Court held that the power to award compensation under Section 357 is not ancillary to other sentences but part of the sentencing process, and that courts must apply their mind to it in every criminal case and record reasons where they decline to award it. That converted a discretion routinely ignored into a duty a court has to discharge on the record.

The late-2025 direction to Special and Sessions Courts builds on that duty by attacking the enforcement gap rather than the rule. By requiring trial courts to pass compensation directions and by pushing judicial training on Section 357A and Section 396, the Court is trying to ensure that the entitlement the statute already grants does not stall for want of an order. A victim who is dissatisfied with a criminal outcome also has a parallel right to challenge it, which LawSikho explains in its guide to the victim’s right to appeal under Section 413 BNSS.

Landmark judgments on the victim compensation scheme

Four Supreme Court judgments shape the victim compensation scheme as it works today. Together they moved compensation from a discretion courts could ignore to a duty backed by a State-funded scheme and a standard set of amounts.

Ankush Shivaji Gaikwad, (2013) 6 SCC 770, is the foundation. It held that courts must consider compensation in every criminal case and record reasons for refusing it, making the exercise of the Section 357 power reviewable rather than invisible.

Suresh v. State of Haryana, (2015) 2 SCC 227, carried the duty into the interim stage. It held that a court must consider interim compensation after taking cognizance and can recommend it even at the bail stage, so that a victim’s rehabilitation does not wait for the end of a long trial.

Laxmi v. Union of India, (2014) 4 SCC 427 addressed acid-attack victims. The Court directed a minimum compensation of three lakh rupees for acid-attack survivors and ordered regulation of the sale of acid, and it fed directly into the later, higher amounts the NALSA scheme fixed for such victims.

Nipun Saxena v. Union of India, (2019) 2 SCC 703, put the amounts on a common footing. It brought the NALSA Compensation Scheme, 2018 into operation as the guideline for compensating women survivors of sexual assault and extended it to child victims under the POCSO framework, giving Legal Services Authorities a standard schedule to apply across States.

Frequently asked questions

What is the difference between Section 357 and Section 357A CrPC?

Section 357 lets the trial court order a convicted offender to pay compensation to the victim, usually out of the fine, so it depends on a conviction and on the offender’s ability to pay. Section 357A creates a State-funded Victim Compensation Scheme, disbursed by the Legal Services Authorities, that pays the victim even if the offender is acquitted, discharged, or never traced. The two can operate together, and Section 357A fills the gap where Section 357 yields nothing.

What is Section 357A CrPC now called under the BNSS?

Section 357A CrPC is now Section 396 of the Bharatiya Nagarik Suraksha Sanhita, 2023, which came into force on 1 July 2024. The substance of the State victim compensation scheme is carried over unchanged. Section 357 CrPC correspondingly becomes Section 395 BNSS, and the related provisions on additional compensation and free medical treatment become Sections 397 and 398 BNSS.

Who is eligible for victim compensation under the scheme?

A victim who has suffered loss or injury from an offence, along with the victim’s guardian and legal heirs, is eligible for compensation under Section 357A or Section 396 BNSS. Eligibility depends on harm and the need for rehabilitation, not on the strength of the prosecution case. Compensation can therefore be awarded even where the criminal case has not resulted in a conviction.

Can a victim get compensation if the accused is acquitted or never caught?

Yes. The Victim Compensation Scheme under Section 357A CrPC, now Section 396 BNSS, applies even where the trial ends in acquittal or discharge, or where the offender is never traced or identified. In an untraced-offender case, the victim applies directly to the District or State Legal Services Authority. This is the central reason the scheme was created separately from the court’s Section 357 power.

How do I apply for victim compensation, and to whom?

A victim applies to the District Legal Services Authority or the State Legal Services Authority, either after a court recommends compensation at the end of a case, or directly where the offender is untraced. The Authority holds an enquiry into the loss and the need for rehabilitation, fixes the amount under the State scheme, and disburses it from the victim compensation fund. It can also order immediate first-aid or medical treatment free of cost.

Can compensation be paid before the case is decided?

Yes, as interim compensation. In Suresh v. State of Haryana, (2015) 2 SCC 227, the Supreme Court held that a criminal court must consider interim compensation after taking cognizance and can recommend it even at the bail stage, once the victim is identified. Interim relief lets rehabilitation begin without waiting for the final judgment.

What is the time limit to claim victim compensation?

The time limit is set by the victim compensation scheme of the State where the offence took place, so it varies across the country. Some State schemes allow a claim within three years of the offence or the conclusion of the trial, while others set a shorter period that the Legal Services Authority can extend for sufficient cause. Because there is no single national deadline, the applicable State scheme has to be checked in each case.

How much compensation can a rape or acid-attack victim get?

Under the NALSA Compensation Scheme, 2018, which States use as the minimum, rape carries a minimum of four lakh rupees and a maximum of seven lakh, and gang rape a minimum of five lakh and a maximum of ten lakh. An acid attack causing disfigurement of the face carries a minimum of seven lakh and a maximum of eight lakh. A minor victim is entitled to fifty per cent above the specified minimum, and a State scheme may fix its own figures for other offences.

Does the victim compensation scheme cover POCSO or child victims?

Yes. In Nipun Saxena v. Union of India, (2019) 2 SCC 703, the Supreme Court directed that the NALSA Compensation Scheme, 2018 operate as the guideline for compensating child victims of sexual abuse under the POCSO framework, where no separate scheme existed. Child victims are covered on the same footing as women survivors, with the fifty per cent enhancement for minors built into the schedule.

References

Case Law

  1. Ankush Shivaji Gaikwad v. State of Maharashtra, (2013) 6 SCC 770
  2. Laxmi v. Union of India, (2014) 4 SCC 427
  3. Nipun Saxena v. Union of India, (2019) 2 SCC 703
  4. Suresh v. State of Haryana, (2015) 2 SCC 227

Statutes

  1. The Code of Criminal Procedure, 1973 (Sections 357, 357A, 357B, 357C, 2(wa))
  2. Bharatiya Nagarik Suraksha Sanhita, 2023 (Sections 395, 396, 397, 398, 2(1)(y))

Secondary sources

  1. LiveLaw: Supreme Court directs trial courts to pass orders for victim compensation to ensure timely disbursal

This article is for informational and educational purposes only and does not constitute legal advice. For advice on a specific case, consult a qualified advocate.



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