The heart-rending incident occurred near the government-run Dharmpur Middle School in the Minapur police station area, about 10 km from the district headquarters, when classes got over and the children were returning home.
Bihar Chief Minister Nitish Kumar and his deputy Sushil Kumar Modi condoled the tragic incident and ordered a "speedy probe and tough action against the guilty driver".
They also announced an ex-gratia of Rs four lakh to the next of kin of those killed and proper medical treatment to those injured.
He said "all the injured, said to be around 20 in number, have been rushed to to the Shri Krishna Medical College and Hospital for treatment. The condition of some of them was stated to be critical".
Irate locals vandalized the vehicle, which dashed against the boundary wall of the school before its driver got out and fled, he added.
Leader of Opposition in the Bihar Assembly, Tejashwi Yadav, rushed to the hospital to take stock of the situation and alleged "we have been told that the vehicle belonged to a local BJP leader and the driver was drunk".
Reacting to Yadav's allegations, BJP spokesperson Rajiv Ranjan said: "The party banner on the vehicle appears to be fake. Nevertheless, the party's district president for Muzaffarpur has been asked to look into the matter and if the owner or the driver turn out to be connected with the party at any level, stern action will be taken".
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