INDIA Law and Practice Contributed by: Vijayendra Pratap Singh, Asif Ahmed, Bhanu Jindal and Khushi Mittal, AZB & Partners
1.7 Damages and Compensation Courts have wide discretionary powers to award com - pensation at the time of sentencing. Criminal courts may, after considering the factors set out in the BNSS, award compensation. No guidelines exist for award - ing compensation to crime victims. It depends on the offence’s gravity, the victim’s loss, and the offender’s ability to pay. If the offender does not have the means to pay, the court can compel the state to pay from the state vic - tim compensation fund (although a policy for com - pelling the state to pay has not been implemented in most states). Fine amounts may range from the alleged amount involved in the crime to, sometimes, multiples of such amount. For instance, the Foreign Exchange Management Act, 2002 (FEMA), prescribes a penalty of up to three times the amount involved in the contravention. Constitutional courts have also provided compensa - tion under the writ jurisdiction as part of the funda - mental right to life and in exercise of powers given to constitutional courts. One notable change introduced under the BNSS is Section 107 (6) and (7) which states that monies realised from liquidating/selling an attached property identified as the proceeds of a crime, are liable to be distributed rateably among the victims of such crime. Indian law does not provide for class action suits for white-collar criminal offences. 2. Enforcement 2.1 White-Collar Enforcement Authorities Federal Agencies The CBI (established under the Delhi Special Police Establishment Act, 1946) is responsible for investigat - ing complex crimes, including white-collar offences, typically in cases involving the PCA or cases of public importance. There are designated special courts noti - fied to try cases investigated by the CBI. The ED has been established to investigate contra - ventions of the Indian exchange control laws and anti-
money laundering regulations. Cases investigated by the ED are adjudicated by adjudicating authori - ties (AA) set up under FEMA and the PMLA. Appeals against orders of the AA under the PMLA and FEMA are brought before a specialised appellate tribunal. The SFIO was established to investigate offences under the Companies Act, 2013 (“Companies Act”). SFIO investigations have been given priority, as inves - tigations by other investigative agencies must await the completion of the SFIO investigation. The SFIO may share information with other agencies for offenc - es beyond its scope and obtain information from them for its inquiries. Designated special courts try Com - panies Act cases. The income tax department (“IT Authority”) has the authority to investigate cases of income tax evasion, undisclosed foreign assets (termed “black money” under Indian law), and income tax fraud. The Directorate of Revenue Intelligence is tasked with detecting and curbing smuggling of contraband, including drug trafficking, as well as combating com - mercial fraud related to international trade and evasion of customs duty. The Directorate General of GST Intel - ligence (DGGI) is entrusted with the tasks of collect - ing, collating, and disseminating intelligence related to the evasion of goods and services tax (GST), and central excise duty. The Central Vigilance Commission (CVC) is a federal authority that provides advice and guidance to its agencies on matters related to vigilance, and receives complaints concerning allegations of corruption or misappropriation of office, and recommends appropri - ate action. Matters investigated and recommended by the CVC are tried by courts designated to try offences The police force of each state/union territory is responsible for maintaining law and order in the des - ignated area as well as registering complaints and investigating crimes. A special branch in the local police structure, namely the Economic Offence Wing (EOW), specifically deals with economic offences involving a certain threshold of monetary value. The under the PCA. State Agencies
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