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.
The Bihar government has since approached the Supreme Court seeking a stay on the auction proceedings. As the amount was not paid despite the court’s order, auction proceedings were initiated. Despite the pending litigation, the proposed auction of the Collectorate property has remained a major talking point in Madhubani.
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 matter, which was listed for hearing on November 7, has now been fixed for November 26. The decree amount of Rs 4,17,24,559 was awarded in favour of Radha Krishna Exports Private Limited, according to court officials. 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.
