The Kerala High Court on Monday warned that it may attach the State's treasury accounts to fund victim compensation schemes and pay mediator fees, if delays noticed in releasing such funds are not corrected within a week.
The Court has also directed the State's Finance Secretary to appear personally before the Court and file an affidavit explaining these delays.
The Division Bench of Chief Justice Soumen Sen and Justice Syam Kumar VM was considering a suo motu case initiated to examine infrastructural deficiencies and funding issues affecting mediation centres across Kerala, as well as the disbursal of funds under the victim compensation scheme.
"We direct the secretary to government, Finance Department to be personally present with an affidavit to explain the reason for not releasing the victims compensation and also the fees of the mediator. In the event the funds are not released within a period of one week, we shall be constrained to pass appropriate orders attaching the accounts to the extent due on such parts," the Court said in its order today.
The matter will be heard further next week.
The Court had earlier called for the personal presence of the State's Home Secretary, Bishwanath Sinha, in the matter. He appeared through video conference today.
"The order was to be personally present in Court, not virtual," Chief Justice Sen pointed out.
Senior Government Pleader Vinitha B informed the Court that the Home Secretary has filed an affidavit explaining why he was constrained to appear through video conference.
Sinha also submitted that he had not been issued a notice regarding a meeting held with stakeholders on March 11 to discuss issues relating to the release of mediator honorariums and victim compensation.
He added that he was not a member of Kerala State Legal Services Authority (KeLSA) to attend such a meeting without notice.
Sinha further said that the Home Department functioned only as a nodal department for regulating, administering and monitoring the schemes.
The financial sanction for the funds lay with the Finance Department, he told the Court.
The Court accepted the submission and dispensed with Sinha's appearance. Instead, it has now directed the Finance Secretary to appear personally before the Court and explain the delays flagged before the Court.
The Court was also displeased with the State government's explanations on the delay in releasing funds for victim compensation.
The senior government pleader stated that the funds for victim compensation could not be disbursed immediately as the scheme contemplated contributions from different heads, such as fines imposed by criminal courts, corporate social responsibility, contributions, and other sources.
She also sought time to file an affidavit explaining the delay and the statutory procedure for the release of funds
However, the Court questioned the State's repeated requests for time despite giving several opportunities.
The Bench added that the law itself envisaged a budgetary allocation for the victim compensation fund.
"According to the rules, the victim compensation fund is something that the State has to meet. What point is there in saying that contributions from corporate agencies have to come?" Justice Syam Kumar VM asked.
An affidavit filed earlier in the matter by Anil K Bhaskar, Member Secretary of KeLSA, had highlighted serious financial constraints affecting mediation activities in the State.
The affidavit stated that arrears of mediator honararium have accumulated due to the non-release of funds by the State government.
According to the affidavit, mediator funds from July 2024 onwards remained pending, with the total arrears exceeding ₹10 crores based on statements furnished by District Mediation Centres.
The affidavit also referred to the recommendation of the Mediation and Conciliation Project Committee (MCPC) of the Supreme Court, which has suggested revised honorarium rates for mediators across the country to ensure uniform standards.
However, the proposal for the enhancement of honorarium in Kerala did not receive government approval due to financial constraints.
In a separate affidavit, KeLSA's member secretary flagged significant delays in payments under the victim compensation scheme. The Kerala Victim Compensation Scheme, framed under Section 357A of the Code of Criminal Procedure, 1973 (now replaced by BNSS), mandates that the State must provide financial assistance to victims of crime who require rehabilitation.
According to KeLSA's affidavit, 1,424 applications for victim compensation remained pending as of January 2026, involving a total compensation amount of nearly ₹47 crores.
The affidavit also highlighted that the annual budget allocation for the scheme remained significantly lower than the actual requirement, resulting in delays in the disbursement of funds.
Advocate Leo Lukose represented KeLSA.
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