A single judge bench of Telangana High Court granted compensation of Rs.2 lakhs for effecting illegal arrest.

From Para 7,

7. There cannot be any iota of doubt that a person who is arrested by the police is looked down by the society. It creates a scar on his personality and character. Arrest in normal course and in compliance with the provision of law, even if it causes injury to the person cannot give rise to cause of action to award damages. However, when there is violation of law and the person is subjected to humiliation and insult, action of the police authorities will have to be condemned in strict terms and consequently compensation in a given case needs to be awarded. The petitioner is well qualified and is working for a reputed company. It is contended that illegal arrest of the petitioner created mental agony, loss of reputation and created permanent scar on his life. Keeping in view the educational qualification and family background of the petitioner, it cannot be said that such statement of loss of reputation, mental agony etc., is an exaggeration. The social status in India varies from person to person. The factors like family background, educational qualification, economical status, profession etc., can be considered for grant of compensation to the victims. Right to live with dignity and self-respect is one of the facets guaranteed under Article 21 of the Constitution of India. No person shall be deprived of his right to live save by due process of law. The unimpeachable record placed before this Court proves that respondent Nos.6 and 7 acted in derogation of law. The notice under Section 41-A(1) of Cr.P.C. was issued without mentioning date and time and without giving sufficient time to the petitioner for compliance, straight away he was produced before the learned Magistrate who remanded him to judicial custody. For such lapses, respondent Nos.6 and 7 were inflicted with punishment in the departmental disciplinary proceedings. Thus, there is a clear violation of mandate of law in Arnesh Kumar’s case (Supra 1) and by doing so, respondent Nos.6 and 7 have infringed upon the fundamental life of the petitioner guaranteed to him under Article 21 of the Constitution of India.

From Para 8,

8. The learned senior counsel appearing for respondent Nos.6 and 7 submitted that respondent No.7 is a young officer having long service and if any further punishment is inflicted by this Court, it would shatter his career opportunities. The learned counsel for the petitioner submitted that Rs.5.00 lakh compensation may be awarded to the petitioner for loss of his reputation in the society on account of his illegal arrest by the erring police officials. However, considering the facts and circumstances of the case, an amount of Rs.2,00,000/- (Rupees two lakhs only) is awarded to the petitioner as compensation for the lapses committed by respondent Nos.6 and 7. Respondent No.1 shall pay the said amount to the petitioner within a period of four (4) weeks from the date of receipt of a copy of this order. Respondent No.1 is at liberty to recover the compensation amount i.e., Rs.1,00,000/- (Rupees one lakh only) each from respondent Nos.6 and 7. So far as the other reliefs are concerned, this Court is not inclined to grant any relief as respondent Nos.6 and 7 were already subjected to disciplinary proceedings and punishment was imposed against them.