Auction procedures must adhere to legal standards, ensuring proper notification and valuation transparency.

CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD and HONOURABLE MR. JUSTICE SOURENDRA PANDEY ORAL ORDER (Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)

4 17-12-2025 We have heard this matter at length at 10:30 AM.

Certain questions were put to learned counsel for the State keeping in view the statements made in the counter affidavit/ Supplementary counter affidavit filed on behalf of Respondent Nos. 5 and 7.

2. Since learned counsel for the State was not well aware of the complete facts, we thought it just and proper to hear the ADM, Muzaffarpur and the Excise Superintendent, Muzaffarpur who are the members of the team responsible for auction of the confiscated vehicles.

3. The matter was taken up again at 02:15 PM and on our request Mr. V.N.P. Sinha, learned Senior Counsel and learned Standing Counsel for the Economic Offence Unit, Bihar, Patna along with learned Associate Counsel Mr. Vijay Anand has appeared. This is in view of our previous order wherein we have indicated that this case would be tagged with CWJC No.

4697 of 2025.

3. It has transpired in course of interactions with ADM, Muzaffapur and the Superintendent of Excise, Muzaffarpur that initially, a Confiscation Case No. 79 / 2021-22 was registered in connection with the vehicle in question. The Officers present online have stated that on record though a format of the notice is available but there is no proof of dispatch of the notice to the petitioner. They have also confirmed that no service report of the notice is available on the record.

4. It is stated that later on the said confiscation case was abandoned and a fresh confiscation case called common Confiscation Case No. 03 / 2022-23 was registered. In the said common confiscation case, again no notice was issued to the petitioner and the other vehicle owners whose vehicles were proposed to be confiscated. By one stroke of pen, the then Deputy Development Commissioner, Muzaffapur passed a common order of confiscation of altogether 490 vehicles including vehicle of the petitioner. A copy of the order as contained in Memo No. 723 dated 15.03.2023 has been brought on record with the supplementary counter affidavit. The Officers have informed that after passing of this common order of confiscation, the auction sale of the vehicles were conducted. The first auction sale notice was published on 25.03.2023 in which the date of auction sale is mentioned between 28.03.2023 and 31.03.2023 at 11:00 AM in Zila Parishad Bhawan, Muzaffarpur. Prior to this, notice was published on 25.02.2023 in which the date of auction was mentioned as 23.03.2023 at 11:00 AM and it was provided therein that the vehicles which will be left over would be auction sold on 28.03.2023. The auction notice contains the minimum price of the vehicle assessed by the Motor Vehicle Inspector.

5. This Court has noticed that the minimum price of the vehicles are though mentioned in the notice but the basis of such price is not known. Nothing is stated about the parameters followed for purpose of assessment of the minimum value of the vehicle. For example, minimum price of one Alto Car is fixed at Rs.20,000/-, minimum price of a Tata Company Truck has been shown at Rs.1,90,000/-. A Mahindra XUV 500 has been fixed at Rs.2,95,000/-, WagonR is for Rs.25,000/- and a 109 DCM Truck is of Rs.1,15,000/-. One Passion Pro has been valued at Rs.2950/- whereas a Mahindra Bolero Pickup is valued at Rs.5000/- only. The vehicle in question being a Scorpio which was seized in connection with Sakra P.S. Case No. 722 of 2020 has been valued at Rs.3,80,000/- as against the insured value of Rs.12,12,517/-. This vehicle is only two years old. The basis of fixing the valuation is presently not known to the ADM and the Superintendent of Excise, however, they have assured this Court that they will bring the entire documents including the valuation report for perusal by this Court tomorrow i.e.