The Kerala High Court on Monday issued a stern warning to the State government over the non-release of funds meant for victim compensation and mediator honorariums. The Court indicated that it may attach the State treasury accounts if the pending dues are not cleared within a week.
A Division Bench led by Chief Justice Soumen Sen and Justice Syam Kumar V.M. passed the interim direction while hearing two connected petitions concerning delays in releasing funds and infrastructure issues affecting mediation centres in the State.
Background of the Case
The proceedings arose from a suo motu petition initiated by the High Court examining the functioning of mediation centres in Kerala. The petition focused on issues such as inadequate infrastructure, shortage of support staff, and delays in providing operational funds.
During earlier hearings, the Court had expressed dissatisfaction with the State government’s failure to release payments due to mediators and to deposit the required amounts into the Victim Compensation Fund.
Last week, the Court had even summoned the State’s Home Secretary after noting the slow progress in clearing these statutory payments.
During Monday’s hearing, the Additional Secretary of the Home Department appeared virtually and explained that the Home Department only administers the scheme. According to the officer, the Finance Department must approve and release the funds.
The Court was informed that approximately ₹47 crore remains pending towards victim compensation, while ₹10 crore is due as honorarium to mediators.
Taking note of the delay, the Bench directed the Secretary of the Finance Department to personally appear before the Court and submit an affidavit explaining why the funds have not been released.
The Court also warned that if the payments are not cleared within a week, it would consider attaching the State’s treasury accounts to recover the dues.
The Bench made strong oral remarks questioning the State’s explanation that funds under the Kerala Victim Compensation Scheme, 2017 depend on multiple sources such as fines, CSR contributions, and budgetary allocations.
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Chief Justice Soumen Sen remarked:
“You were supposed to release the statutory dues. We are not here to examine the rules to find excuses. We only want to know why the money has not been paid.”
Justice Syam Kumar V.M. also emphasized that the responsibility ultimately rests with the State:
“Victim compensation is a liability of the State. If contributions or donations do not come, the government must provide the funds from its own budget.”
The Court further criticised the government for sending an Officer on Special Duty (OSD) to a meeting chaired by the Chief Justice and senior judges instead of a senior decision-making official, calling the move inappropriate.
The High Court directed the Finance Secretary of Kerala to appear before it with an affidavit explaining the delay in releasing funds for victim compensation and mediator payments.
The Bench also made it clear that failure to release the pending funds within one week could result in attachment of the State’s treasury accounts to recover the amount due.
The matter has been posted for further hearing after one week.
Case Title: Suo Motu v. State of Kerala and Ors. & Connected Matter
Case Number: WP(C) 42844/2025 and WP(C) 48551/2025
