Judge Orders Selma Motel Forfeited After Finding Repeated Violations Of Court Settlement

SELMA, N.C. — Less than 10 months after the owners of the Knights Inn reached a court-approved agreement allowing the motel to remain open under strict operating conditions, a Johnston County judge has ordered the property forfeited after finding the owners repeatedly violated the settlement and failed to eliminate the nuisance activity that led to the original lawsuit.

In a June 17 order, Superior Court Judge Clayton D. Somers ruled that owners Rajendra S. Rathore and Sachi D. Rathore violated multiple provisions of a Consent Judgment and Final Order of Abatement entered in August 2025. The ruling stems from the Town of Selma’s nuisance abatement lawsuit, which accused the motel of being a focal point for illegal drug activity and other criminal behavior.

The decision marks a dramatic escalation in a case that has been closely watched by Town of Selma officials, law enforcement and nearby property owners.

If the order ultimately stands, ownership of the Knights Inn property at 100 Graham Street would transfer to the Johnston County Board of Education under North Carolina nuisance abatement laws.

The motel owners, however, are attempting to prevent that from happening.

A hearing is scheduled June 29, 2026 before Judge Somers on a motion filed by the Rathores seeking to stay execution of the forfeiture order. If unsuccessful, they could appeal to the North Carolina Court of Appeals, potentially delaying any transfer of ownership while the case is reviewed.

Judge Vince M. Rozier Jr. entered the original Consent Judgment and Final Order of Abatement on August 22, 2025, after finding a history of nuisance activity at the property, including drug-related offenses, violence and recurring breaches of the peace.

At the time, the Town of Selma agreed to allow the motel to continue operating if the owners complied with a lengthy list of conditions designed to eliminate criminal activity and improve management of the property.

The agreement required detailed guest registration records, restrictions on long-term stays, employee background checks, security improvements, surveillance cameras, cooperation with law enforcement, and numerous other safeguards.

The settlement came after years of law enforcement activity at the motel, including drug investigations, overdoses, shots-fired calls and multiple disturbances. The Town argued the property constituted a public nuisance under North Carolina law.

Rather than ordering the motel immediately closed, the parties reached a compromise intended to give the owners an opportunity to correct the problems while allowing the business to remain open.

The agreement also included a warning. If the nuisance continued or reoccurred within five years and the owners failed to make good-faith efforts to comply, the Town could return to court and seek forfeiture of the property.

Judge Finds Violations

According to the court order, that’s exactly what happened.

After reviewing evidence presented during a June 8 hearing, Judge Somers concluded the motel owners violated numerous provisions of the 2025 settlement.

Among the most damaging findings was the judge’s conclusion regarding the credibility of the defendants and their evidence.

“The Court found that the Defendants and the evidence set forth by Defendants are not credible,” Somers wrote.

The judge further concluded there was “clear and convincing evidence that the nuisance continued, began again, or otherwise reoccurred” and that the owners failed to establish they had made and continued to make good-faith efforts to abate the nuisance.

The order states the motel failed to provide guest registries requested by the Selma Police Department despite multiple requests. Court records indicate officers sought current guest lists on several occasions but never received the information.

Judge Somers also found the motel violated restrictions on extended stays.

Under the settlement agreement, guests generally could not remain longer than 14 days, and local residents living within a 15-mile radius faced even stricter limitations. However, evidence presented by probation officers showed multiple occupants remained at the motel for periods ranging from 23 to 63 days.

The court additionally found that required guest registries were not properly maintained and were not available for inspection by Selma Police.

The judge also determined the owners failed to conduct and maintain employee background checks and employed an individual with a narcotics conviction within the five-year period prohibited under the settlement agreement.

Another violation involved employees living on the property without approval from the Selma Police Department, which was specifically prohibited by the consent order.

Drug Activity Allegedly Continued

The court order details several incidents that occurred after the 2025 settlement was approved.

According to Judge Somers’ findings, there was one documented occurrence of possession with intent to sell a controlled substance and two separate occurrences involving possession of controlled substances on the property between January and May 2026.

One of the most significant incidents occurred on May 13, when probation officers and the Selma Police Department conducted searches of rooms occupied by probationers residing at the motel.

During one search, authorities located methamphetamine and drug paraphernalia. According to the order, a resident employee was charged with possession of a controlled substance while another individual was arrested on drug paraphernalia charges.

The judge concluded that the owners, their employees and individuals responsible for managing the property engaged in conduct that constituted a nuisance under North Carolina law.

Property Ordered Forfeited

After reviewing affidavits, supporting documents and testimony, Judge Somers ruled in favor of the Town of Selma on all allegations contained in its motion for contempt and forfeiture.

The court held the Rathores in civil contempt and ordered them to forfeit all rights, title and interest in the property, transferring ownership to the Johnston County Board of Education.

ALE Director Bryan House said the forfeiture order reflects the seriousness of the issues that persisted at the motel.

“The court’s decision to turn this property over to the Johnston County Board of Education reflects the serious and ongoing nature of the nuisance activity at this property,” House said.

“This outcome demonstrates how Chapter 19 can be used by ALE special agents and local governments to restore safety and improve the quality of life for citizens affected by chronic criminal activity. We are proud to partner with the Selma Police Department and the Town of Selma in addressing issues that impact the safety and well-being of their community.”

Police Chief: Action Was Necessary

Selma Police Chief Justin Vause said the court’s ruling is the result of years of work by multiple agencies attempting to address problems at the motel.

“This outcome is the result of persistent, coordinated work to protect the residents, businesses, and visitors of Selma from the ongoing criminal activity associated with this property,” Vause said.

“The Selma Police Department remains committed to addressing the repeated calls for service, violence, drug activity, and quality-of-life concerns that affect the surrounding community. I am grateful for the partnership of the North Carolina Alcohol Law Enforcement Division, the Town of Selma, and Hewett Law Group in pursuing a lawful and effective remedy.”

The June 17 order prohibits the motel from accepting new occupants, lodging reservations or conducting new business. The owners were directed to provide a complete list of occupants and remove all occupants and their belongings from the property within 30 days. Motel operations and U-Haul rentals must cease except as necessary to wind down business operations.

The Town of Selma is also entitled to seek attorney fees, investigative costs and other expenses associated with the case. A separate hearing will be held to determine those amounts.

What Happens Next?

The June 29 hearing may determine whether the forfeiture order takes immediate effect or is temporarily paused while the owners pursue additional legal remedies.

If Judge Somers denies the request for a stay, the Rathores can appeal to the North Carolina Court of Appeals. Such an appeal could delay any transfer of the property for months while appellate judges review the case.

If the forfeiture order ultimately survives all appeals, ownership of the property will transfer to the Johnston County Board of Education. At that point, the school board would decide whether to retain the property, repurpose it, lease it, or declare it surplus and sell it. Under Judge Somers’ order, the current owners would be prohibited from reacquiring the property if it is later sold.