File a Fake SC/ST Case, Pocket Rs 8.5 Lakhs Before Breakfast — The Taxpayer-Funded Extortion Scam No One Dares Call Out
Imagine slapping a false atrocity case on someone over a petty land dispute, parking argument, or personal grudge — and walking away with lakhs in government cash deposited straight into your account within days, long before a court even hears the evidence. That’s not a hypothetical; that’s the everyday reality of the SC/ST (Prevention of Atrocities) Act’s victim compensation scheme.
Designed to protect the vulnerable, it’s been weaponized into a ruthless extortion tool where 50-75% of payouts (up to ₹10 lakh for grave offenses) hit bank accounts at the FIR or medical stage — no conviction required. The supreme court itself branded it a “means to blackmail” back in 2018.
High Courts have slammed the misuse and begged for refunds when cases collapse in compromise. Yet the money keeps flowing from your taxes, incentivising an explosion of false cases while genuine victims drown in the noise. This isn’t protection. This is a state-sponsored scam that rewards lies, ruins lives, and mocks justice.
- 75% payout before anyone steps into court — For murder or severe atrocities, victims (or complainants) get 75% of up to ₹10 lakh immediately after FIR/postmortem. Rape cases? 50% at FIR stage. No evidence vetted, no trial held — just an allegation and the cash flows. Perfect incentive to fabricate stories for quick money.
- Even minor insults trigger instant cash — Humiliation or verbal abuse cases start at ₹85,000-₹2 lakh, with 25-50% paid right at FIR. Got into a heated argument? Slap an SC/ST case, pocket thousands before the accused even gets bail. Small disputes now come with a government jackpot attached.
- Conviction rates are abysmal, but the money stays put — Most cases end in acquittal or compromise, yet early payouts are almost never recovered. Taxpayers permanently fund “victims” who later admit it was settled out of court. allahabad HC has raged about this misuse of public money — but the racket rolls on.
- Supreme court exposed it as blackmail in 2018 — The apex court noted the Act “has become a means to blackmail citizens and public servants” and introduced safeguards (later diluted). Yet staged payouts remain, fuelling vengeance filings while genuine atrocities get sidelined by the flood of fakes.
- High Courts forced to play cleanup — allahabad HC ruled compensation should only come post-conviction to stop the scam, and ordered refunds on compromise. Reality? Rarely enforced. Complainants grab the cash, settle privately, and vanish — leaving the falsely accused traumatised and broke.
- No questions asked at FIR stage — police register cases instantly (mandatory under the Act), triggering automatic relief. No preliminary check for falsehoods. Result: explosion of vexatious complaints, with states like andhra pradesh once recording among the highest false case rates.
- Real victims suffer the most — Flood of fake cases clogs courts, delays justice, and dilutes the law’s purpose. Genuine SC/ST atrocity survivors wait years while the system chases fabricated disputes turned into cash grabs.
- Taxpayers are the real victims here — Every rupee of these staged payouts comes from public funds. You pay income tax, GST, fuel cess — so someone can allege caste insult, collect lakhs upfront, and walk free after compromise. Social justice? More like socialist robbery.
- Recent convictions for false filing prove the rot — Courts have jailed complainants for fabricated SC/ST cases, noting “false cases are rising.” One woman got 3 years for a bogus complaint after pocketing compensation. But these are drops — the ocean of misuse keeps growing.
- Fix it or admit it’s broken — Tie 100% compensation to conviction. Mandate strict refund on acquittal/compromise. Verify claims before payout. Until then, the SC/ST Act remains less a shield for the oppressed and more a sword for the opportunistic — turning caste sensitivity into a cold, calculated business model. Demand reform, or watch justice die one false FIR at a time.