A GAME OF EXTORTION AMIDST LAPSED SETTLEMENTS

A GAME OF EXTORTION AMIDST LAPSED SETTLEMENTS

25-MARCH-ENG 20

RAJIV NAYAN AGRAWAL

ARA-----------------------------An illegal market is being operated on NH-84 within the Shahpur Nagar Panchayat area, where rules are being brazenly flouted to facilitate extortion. Despite orders from the High Court, encroachment persists...

The 'Old Market' (Purani Bazar) of the Shahpur Nagar Panchayat is proving to be a veritable 'Kamadhenu' (cash cow) for the administration. It is alleged that, for years, departmental collections have been carried out by officials who have completely disregarded established rules. The network of market collections is so entrenched that while governments and officials have come and gone, the responsibility for collecting these dues has remained firmly in the hands of the same two or three individuals.

The situation is such that, despite specific orders from the High Court, a market continues to be set up along the edges of NH-84, and market fees are actively being collected from shopkeepers. Conversely—and ironically—a token campaign is occasionally launched to remove this very market, labeling it as an illegal encroachment.

Recently, an operation was conducted to clear encroachments from NH-84; however, within just a few days, shops—including those selling vegetables, fruits, meat, and eggs—reappeared at their original spots, and the cycle of extortion resumed. It is reported that, for the past decade, the formal settlement (lease/auction) process for the Shahpur market has not been successfully completed.

The primary reason for this impasse is the stipulated 'security deposit' amount, which is fixed at approximately ₹593,000 for a one-year term. Given that the actual revenue generated by the market falls short of this figure, no individual is willing to take the financial risk of bidding for the auction rights to this market concession. Surprisingly, despite the absence of any auctions for the past 10 years, the security deposit amount has continued to rise steadily; currently, for the year 2026-27, it has reached approximately ₹593,000.

According to available information, only ₹60,000 to ₹100,000 has been deposited into the government exchequer annually through departmental collections. Previously, the district administration was responsible for the settlement (lease) of this market; however, in the financial year 2023-24, this responsibility was transferred to the Nagar Panchayat (Town Council).

According to the Revenue Department, if the settlement of a *Sairat* (revenue-yielding asset) does not take place for three consecutive years, a mandatory review is required. During this review, the security deposit amount is supposed to be re-determined based on the income generated through departmental collections during that period.

Umesh Chandra Pandey, Director of Khanti Agro, alleges that the officials simply do not wish to conduct the market settlement. It is for this very reason, he claims, that the security deposit amount has been inflated to an unusually high level.

According to Abhay Kumar Pandey, an advocate at the Patna High Court, establishing a market on or along the side of a National Highway is illegal under any circumstances. Despite this, allowing a market to operate on NH-84—and subsequently collecting revenue from it—constitutes a blatant disregard for the rules.