[Bihar Excise Act] Patna High Court Slashes 90% Penalty On Insurance Declared Value Of Seized Motorcycle To 10% In Liquor Case
The Patna High Court has relaxed an excessive penalty of 90% of Insurance Declared Value (IDV) to 10% on a motorcycle seized in a liquor-related offence. A Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey held that, considering the quantum of liquor (18 litres), applying Rule 12A of the Bihar Prohibition and Excise Rules, 2021, which prescribes 10%...
The Patna High Court has relaxed an excessive penalty of 90% of Insurance Declared Value (IDV) to 10% on a motorcycle seized in a liquor-related offence.
A Division Bench comprising Justice Rajeev Ranjan Prasad and Justice Sourendra Pandey held that, considering the quantum of liquor (18 litres), applying Rule 12A of the Bihar Prohibition and Excise Rules, 2021, which prescribes 10% of the insured value as the minimum penalty.
The police intercepted the petitioner while riding his Hero Xtreme motorcycle (UP57BN4659) and allegedly recovered 18 litres of liquor from a black backpack carried on the vehicle. The petitioner was arrested, and the motorcycle was seized.
Subsequently, confiscation proceedings were initiated as Excise Confiscation Case No. 75 of 2025. The Sub-Divisional Officer, Gopalganj Sadar, acting as the competent authority, ordered release of the vehicle but imposed a penalty of ₹1,05,000, despite the insured value of the motorcycle being ₹1,25,123.
Before the High Court, the petitioner contended that the penalty was grossly disproportionate, amounting to nearly 90% of the insured value, and could not be considered reasonable, especially when the quantity of liquor involved was only 18 litres. It was also pointed out that the vehicle was not a repeat offender and that the petitioner had no criminal antecedents under the Prohibition law.
Reliance was placed on the recent Patna High Court decision in Rakesh Kumar Singh v. State of Bihar, where a vehicle carrying about 300 litres of liquor was directed to be released on payment of 30% of its insured value.
The State initially attempted to justify the penalty but eventually did not contest the argument that the amount imposed was excessively high.
Accordingly, the Court set aside the confiscation order dated 01 April 2025 and directed the Sub-Divisional Officer to release the vehicle on payment of only 10% of its insured value.
Case Title: Alok Pandey v. State of Bihar & Ors.
Case Number: Civil Writ Jurisdiction Case (CWJC) No. 15636 of 2025
Counsel for Petitioner: Mohammad Farooq
Counsel for State: Madanjeet Kumar
Citation: 2026 LLBiz HC(Pat) 2