The Patna High Court strongly criticized the Bihar administration for auctioning 490 seized vehicles through a single bulk order, calling it a blatant violation of legal procedures, natural justice, and transparency under the state’s liquor prohibition law.
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PATNA: The Patna High Court has delivered a verdict against the Bihar administration, exposing massive irregularities and alleged corruption in the auction of vehicles seized under the state’s liquor prohibition law. Calling the process a clear case of “systemic collusion,” the court ordered strict action against erring officials and directed a criminal investigation by the Economic Offences Unit (EOU).
A division bench of Justices Rajiv Ranjan Prasad and Saurabh Pandey, while hearing Sushil Kumar Singh’s petition, stated that auctioning 490 vehicles at once in Muzaffarpur showed a blatant disregard for legal rules and fairness.
490 Vehicles Auctioned in Bulk
The High Court expressed strong disapproval of the authorities for confiscating and auctioning 490 vehicles through a single order, terming it a complete violation of statutory procedures and principles of natural justice.
The bench also questioned how a Motor Vehicle Inspector could have assessed 527 vehicles across 22 police stations within just two days, without physical inspection, photographs, or any scientific valuation method. The court described the exercise as a “paper valuation” that caused substantial loss to both vehicle owners and public revenue.
Scorpio Worth ₹12 Lakh Sold for Just ₹3.85 Lakh
The case arose from Muzaffarpur district and involved a Mahindra Scorpio S-9 seized in 2020. The division bench of Justices Rajiv Ranjan Prasad and Saurabh Pandey noted that the vehicle, insured at ₹12.12 lakh, was auctioned for a shockingly low price of ₹3.85 lakh, raising serious questions about valuation and transparency.
The court found that the vehicle owner, Sushil Kumar Singh, was neither issued a mandatory show-cause notice nor granted a personal hearing before confiscation. Despite this, the Scorpio was included in a bulk confiscation order and auctioned along with hundreds of other vehicles.
No Newspaper Advertisements, Same Buyers Repeatedly Winning Auctions
Another major lapse highlighted by the court was the failure to publish mandatory auction notices in newspapers, which severely compromised transparency and fair participation.
Court records showed that a small group of individuals repeatedly purchased multiple vehicles, strongly suggesting collusion between officials and buyers. The judges warned that the pattern pointed to an organized internal “racket” operating within the system.
High Court’s Order
In a relief to the aggrieved vehicle owner, the Patna High Court directed the Bihar government to pay ₹12,12,517 (full insured value) along with 6% annual interest within six months. Additionally, ₹10,000 was awarded as litigation costs.
Importantly, the court clarified that the entire amount would be recovered from the personal pockets of the officials found guilty of violating procedures.
Taking serious note of the matter, the High Court ordered the Economic Offences Unit (EOU) to:
- Register an FIR
- Form a Special Investigation Team (SIT)
- Conduct a comprehensive probe into all liquor ban vehicle auctions
The court warned that similar auctions conducted across Bihar would now be placed under strict judicial scrutiny.
