A single bench Judge of Allahabad High Court at Lucknow held that, compensation obtained as victims has to be recovered if the said alleged victims turn hostile before Courts.

From Para 11,

11. Now, the question has cropped up before me as to whether, the prosetrix who has become hostile is entitled to retain the amount of compensation. In my opinion, if the victim has become hostile and does not support the prosecution case at all, it is appropriate to recover the amount if paid to the victim. The victim is the person who comes before the Court and during trial if she denies the allegation of rape and becomes hostile, there is no justification to keep the amount of compensation provided by the State Government. The State Exchequer cannot be burdened like this and there is all possibility of misuse of the laws. Therefore, in my opinion, the amount of compensation given to the victim or the family member, is liable to be recovered by the authorities concerned who have paid the compensation.
12. Therefore, considering the above aspect of the matter, it is directed that the State Government will pass appropriate orders and issue necessary directions to the authorities concerned to recover the amount of compensation if paid, in the cases, where the victim has become hostile during trial and not supported the prosecution. Let necessary exercise be done within a period of three months.
13. The Senior Registrar of this Court is directed to send a copy of this order to the Chief Secretary of Government of Uttar Pradesh for necessary compliance.
14. List this case in the second week of August and learned AGA will submit progress report.

Citations:

Other Sources: