Why Is A Bihar Collectorate On Auction? All About The Rs 4 Crore Case

On June 17, 2025, a court directed the Bihar government to pay Rs 4.17 crore to Radha Krishna Exports Private Limited, a Kolkata-based firm, in connection with a dispute involving Pandoul Spinning Mills Private Limited in Madhubani district. As the amount remained unpaid for more than a year, the court of Madhubani District and Sessions Judge Pawan Kumar Pandey ordered the auction of a portion of the Madhubani Collectorate property on August 27, 2026, with the auction initially scheduled for November 5, 2026.

Earlier, on June 17, 2025, then District and Sessions Judge Anamika T. had also ordered the payment and directed that the property could be auctioned if the dues were not cleared. The Bihar government has since approached the Supreme Court seeking a stay on the auction proceedings. The matter, which was listed for hearing on November 7, has now been fixed for November 26.

On October 1, 2026, Principal District and Sessions Judge Pawan Kumar Pandey ordered the auction of approximately one-fourth of the Madhubani Collectorate building. Acting on the order, Nazir Awadhesh Kumar and Naib Nazir Vikas Kumar pasted copies of the auction notice within the Collectorate premises.

According to court officials, the decree amount of Rs 4,17,24,559 was awarded in favour of Radha Krishna Exports Private Limited. As the amount was not paid despite the court's order, auction proceedings were initiated.

The notice stated that the auction was scheduled to be conducted at 10 am on November 5, 2026, at the court premises. The proceedings were initiated by the Nazarat department in compliance with an August 27, 2026 order passed in Execution Case No. 03/16, Radha Krishna Exports Private Limited vs Pandoul Cooperative Spinning Mills Private Limited and Others.

The proposed auction covered 10 kathas of land out of a total area measuring 2 bighas, 5 kathas and 67 dhurs, along with the structure standing on it. Court staff displayed the auction notice at the main entrance of the Collectorate, triggering widespread discussion across the district.

Notably, auction notices relating to the Collectorate property have been issued on three occasions: June 17, 2025, August 27, 2026, and October 1, 2026.

Government counsel Sarojanand Jha said the auction proceedings have been challenged before the Supreme Court and that the matter is now scheduled for hearing on November 26. Despite the pending litigation, the proposed auction of the Collectorate property has remained a major talking point in Madhubani.