Patna High Court directs Economic Offence Unit to probe procedural lapses in vehicle confiscation and auction, awards compensation to petitioner.
In a significant ruling, the Patna High Court has annulled the auction sale of a Mahindra Scorpio S9 vehicle, citing grave procedural violations under the Bihar Prohibition and Excise Rules, 2021. The court ordered the Economic Offence Unit (EOU) to investigate the matter, including the roles of the authorities involved and the connections of auction purchasers with officials. The petitioner, Sushil Kumar Singh, was awarded compensation equivalent to the insured value of the vehicle, along with interest and litigation costs.
The case pertains to the confiscation and subsequent auction of Singh's vehicle, which was seized in December 2020 in connection with a police case involving the recovery of foreign liquor. Despite a release order from the Excise Court, the vehicle was not returned to Singh but was instead used by a Deputy Superintendent of Police in Muzaffarpur. The vehicle was later auctioned at a fraction of its insured value without proper notice or public advertisement, as mandated by the rules.
The court found that the authorities violated Rule 13A and Rule 14 of the Bihar Prohibition and Excise Rules, 2021. No show-cause notice was served to Singh, and the auction notice was issued even before the confiscation order was passed. The auction was conducted without public advertisement in newspapers, and the vehicles were sold at arbitrary valuations, leading to a loss to the public exchequer.
Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey, who presided over the case, expressed concerns about the apparent lack of respect for the rule of law and potential extraneous considerations influencing the actions of the officials involved. The court noted that similar issues have been observed in other cases, prompting a broader investigation by the EOU.
The court directed the state to pay Singh Rs. 12,12,517, the insured value of the vehicle, with 6% interest from three months post-seizure until payment, and an additional Rs. 10,000 in litigation costs. The state was also instructed to recover the differential amount, along with interest, from the erring officials.
The judgment highlights the need for strict adherence to procedural rules in confiscation and auction matters to prevent misuse of power and ensure accountability. The court's decision to monitor the investigation underscores the seriousness of the allegations and the importance of maintaining public confidence in legal processes.
Bottom Line:
Confiscation and Auction Sale of Vehicles - Violation of procedural rules under Bihar Prohibition and Excise Rules, 2021 - Auction sale notice issued prior to confiscation order - Failure to serve show-cause notice to the vehicle owner - Auction sale conducted without public advertisement in newspapers as mandated - Arbitrary valuation of vehicles causing loss to the public exchequer - Directions for investigation by Economic Offence Unit and compensation to the petitioner with interest and cost.
Statutory provision(s): Bihar Prohibition and Excise Rules, 2021 - Rule 13A, Rule 14
Sushil Kumar Singh v. State of Bihar, (Patna)(DB) : Law Finder Doc Id # 2823909
