Madras High Court Orders Audit of Tamil Nadu Victim Compensation Fund In Central Prisons

The Madras High Court has directed the Tamil Nadu Accountant General to audit the Victim Compensation Fund (VCF) accounts maintained across the state’s central prisons. The directive comes from serious allegations raised about the mismanagement and underutilization of the funds meant to aid victims of crimes.

The bench comprising Justice S.M. Subramaniam and Justice M. Jothiraman, passed the order while hearing a writ petition filed by M. Depalaksmi. The petitioner sought enforcement of certain privileges for her incarcerated husband under Rule 233 of the Tamil Nadu Prison Rules and raised concerns about the deductions made from prisoners’ wages to sustain the VCF. Under Rule 2(I) of the Tamil Nadu Victim Compensation Fund Rules, 20% of wages earned by prisoners are allocated to the fund, which, according to the petitioner, remains underutilized and mismanaged.

During the hearing, the court noted a report highlighting that a staggering ₹11.61 crore of the fund remained unspent as of 2018, with only ₹1.97 crore disbursed to 419 victims over an eight-year period. Expressing concern, the bench emphasized that the prisoners contributing to the fund have the right to question its administration and called for an audit under Rule 10 of the Tamil Nadu Victim Compensation Fund Rules.

The court has ordered the Accountant General to form a team of accounts officers to conduct an audit of the VCF accounts maintained in all eight central prisons in Tamil Nadu. The audit is expected to examine the fund’s receipts, expenditures, and the genuineness of payments made to victims. A report on the findings has been directed to be submitted by January 30, 2025.

The bench also directed the Additional Chief Secretary to the Home Department and the Director General of Police/Inspector General of Prisons to file a separate report by January 27, 2025, detailing the steps taken to address the petitioner’s grievances. These include allegations of excessive censorship of newspapers in prisons and the non-implementation of A-Class privileges for her husband.

The court’s order sheds light on potential lapses in the administration of the Victim Compensation Fund, a crucial resource for aiding victims of crime. Observing the discrepancies in fund utilization, the judges stressed the need for transparency and accountability in managing public resources. The issue will be taken up for further hearing on January 27, 2025, with the final audit report expected shortly thereafter.

Case Title: M.Depalaksmi vs. The Additional Chief Secretary To Government Home, Prohibition And Excise Department