Understanding the Central Victim Compensation Fund (CVCF): A Lifeline for Crime Victims in India

The Indian government is committed to supporting victims of crime, especially those who suffer from heinous offenses. The Central Victim Compensation Fund (CVCF), established by the Ministry of Home Affairs, is a vital initiative aimed at providing financial assistance to these individuals and ensuring that State-level schemes are effectively implemented. This blog post will break down the CVCF, its objectives, and how it operates.

What is the Central Victim Compensation Fund (CVCF)?

The CVCF is a fund established by the Government of India to provide financial support to victims of various crimes, particularly those who have suffered from sexual offenses, acid attacks, crimes against children, and human trafficking. It acts as a supplementary fund to support the existing victim compensation schemes run by individual States and Union Territories (UTs).

Core Objectives of the CVCF

The CVCF has three primary objectives:

1. Supplement State Schemes: To provide additional funds to support and bolster the victim compensation schemes already in place at the State/UT level.

2. Reduce Compensation Disparity: To minimize differences in the compensation amounts provided by different States/UTs for victims of similar crimes. This aims to create a more equitable system of victim support across the country.

3. Encourage Effective Implementation: To motivate States/UTs to implement their victim compensation schemes under Section 357A of the Code of Criminal Procedure (CrPC) effectively.

Financial Corpus of the CVCF

• The CVCF was launched with an initial corpus of ₹200 crores sanctioned by the Ministry of Finance.

• The funds for the CVCF initially come from the “Nirbhaya Fund,” which is dedicated to tackling crimes and violence against women.

• The CVCF can also be supplemented through contributions from the public and corporations.

Management and Oversight

The CVCF is managed by an Empowered Committee chaired by the Additional Secretary (CS) of the Ministry of Home Affairs (MHA). The committee includes members from various relevant ministries, such as Finance, Women and Child Development, and Social Justice and Empowerment. This committee plays a vital role in overseeing the fund’s operations and decision-making.

Accessing Funds from the CVCF: Requirements for States/UTs

To receive funding from the CVCF, States and UTs must meet specific criteria:

1. Notify State Victim Compensation Scheme (VCS): The State/UT must have a fully functional and notified Victim Compensation Scheme as per the provisions of Section 357A of CrPC.

2. Minimum Compensation Amounts: The compensation amount provided by the State/UT should not be less than the minimum amounts specified in the CVCF guidelines (Annexure-I).

3. Pay First, Reimburse Later: The State/UT must first pay the compensation to eligible victims from its own VCS fund. It can then seek reimbursement from the CVCF.

4. Spend Own Funds First: Funds from non-budgetary sources available in the State Fund should be used to compensate the victims first. The budgetary grant should only be used after this.

5. Maintain Electronic Records: Details of each compensated victim must be recorded electronically in the Victim Compensation Module of the CCTNS (Crime and Criminal Tracking Network & Systems) project’s Citizen portal.

Admissible Activities and Use of Funds

The CVCF funds are used for:

1. Building the Corpus: To enhance the funds available with the Ministry of Home Affairs.

2. Supplementing the Fund: To accept contributions from public and private entities.

3. Matching Share Support: To provide financial assistance to State/UT victim compensation schemes on a matching-share basis (according to actual spending by States/UTs).

4. Acid Attack Support: To provide special financial aid up to ₹5.00 lakhs to victims of acid attacks (over and above the regular compensation paid by states/UTs).

How States/UTs Can Apply for Funds

1. Implementation First: States/UTs must first implement their own victim compensation schemes and pay victims.

2. Submit Proposals: They should then submit proposals to the CVCF for reimbursement of funds, preferably annually, after the completion of the financial year.

3. Required Information: Proposals must include detailed information such as:

   • Opening balance of the State fund.

   • Amounts received from various sources (fees, fines, perpetrators, etc.).

   • Budgetary grants

   • Compensation paid to victims.

   • Amount claimed from CVCF.

   • Total number of victims assisted.

4. Routing through MHA: UTs need to route their proposals through the UT Division of MHA.

5. Electronic Transfer of Funds: Approved funds are transferred electronically to the State’s victim compensation fund, either through the State Legal Services Authority (SLSA) or the nodal department of the State Government.

6. Utilization Certificates: The State must furnish utilization certificates as per the prescribed rules.

Key Aspects of CVCF Functioning

• Accountability: Internal and statutory audits are conducted to ensure financial transparency.

• Public Contributions: The fund accepts donations through online payments, debit/credit cards, and checks/demand drafts. Donations receive an automated receipt.

• Interest Utilization: Interest earned on temporarily idle balances is ploughed back into the CVCF.

• Information Transparency: Information on activities and FAQs will be on the MHA website, and state governments are responsible to provide answers to queries related to fund utilization in their respective states.

• Monitoring: A quarterly report on the utilization of funds is provided by the concerned division to the Empowered Committee.

Minimum Compensation Amounts

The CVCF guidelines (Annexure I) provide minimum compensation amounts for various crimes:
Note: If the victim is less than 14 years of age, the compensation amount is increased by 50% over the specified amount.