Patna High Court
By Alok Mohit
Patna: In a strongly worded judgment exposing what it described as a “blatant violation of the rule of law,” the Patna High Court has directed the Bihar government to pay compensation of Rs 12.12 lakh with interest to a Muzaffarpur resident whose vehicle was confiscated and auctioned allegedly without following mandatory legal procedures.
Finding that the confiscation and auction process followed by the Excise Department and district authorities in Muzaffarpur was “arbitrary, mala fide and completely contrary to statutory rules,” a division bench, comprising Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey, ordered the Economic Offences Unit (EOU) to register an FIR and investigate large-scale irregularities in the confiscation and auction of vehicles under the Bihar Prohibition and Excise Act.
The court passed the order while hearing a writ petition filed by Sushil Kumar Singh, owner of the vehicle that was seized in December 2020 in connection with Sakra police station case under provisions of the IPC and the Bihar Prohibition and Excise Act, 2016. Despite a January 2023 order by the Exclusive Special Excise Judge directing release of the vehicle, Singh alleged that the vehicle was never returned, was illegally used by police officials, and was later auctioned without notice.
The court noted that no show-cause notice, as required under the Rule 13A of the Bihar Prohibition and Excise Rules, 2021, was served on the petitioner. Although officials claimed that a notice had been issued in an earlier confiscation case, they admitted that no proof of dispatch or service existed. Later, a common confiscation order covering 490 vehicles was passed in March 2023 without individual hearings.
The bench observed that the valuation process was equally disturbing. Records showed that the motor vehicle inspector submitted valuation reports for 527 vehicles across 22 police stations within just two days, without physical inspection, photographs, or documented criteria, the bench said. Singh’s two-year-old vehicle, insured for Rs 12.12 lakh, was valued at just Rs 3.80 lakh and sold for Rs 3.85 lakh.
The court concluded that the valuation exercise was “only paperwork done sitting in the office” and resulted in potential loss to the public exchequer.
The judgment further highlighted that auction notices were issued even before the confiscation order was passed, and in violation of Rule 14, which mandates auction only after confiscation attains finality. Shockingly, the auction notice under which Singh’s vehicle was sold was not published in any newspaper, despite legal requirements for public advertisement in at least one local vernacular daily.
During the hearing, the court interacted directly with the auction purchaser, Bhola Sah, who admitted to buying 12 vehicles in auctions and selling several without permission or surrender of registration numbers. He stated that he learned about auctions informally, raising serious questions about access, transparency, and alleged collusion.
Given that the vehicle had already been transferred to a third party, the court granted Singh monetary compensation instead of restoration. It directed the state to pay Rs 12,12,517 with 6% annual interest, along with ₹10,000 litigation cost, within one month.
The bench also ordered that the difference amount of Rs 8.27 lakh, along with interest and costs, must be recovered from the erring officials responsible for the illegal actions. It also instructed the Excise Department to initiate departmental proceedings and ensure strict compliance with statutory rules in future.
Taking note of similar patterns in other districts, including Gopalganj, the court directed the EOU to register an FIR and constitute a Special Investigation Team to probe valuation manipulation, auction practices, official involvement, and the nexus with repeat auction purchasers. The court said it would monitor the progress of the investigation.
The case has been tagged with related petitions and will be listed next on January 27, 2026.
About the Author
Alok Mohit is a senior journalist based in Patna with decades of experience in mainstream journalism. He has previously served as News Editor at Hindustan Times, Patna, and later at Hindustan Times, Chandigarh, where he played a key role in shaping news coverage and editorial direction. Known for his in-depth understanding of socio-political issues and strong editorial judgement, he continues to contribute insightful analysis and reporting on matters of public interest.
About the Author
