Indian Criminal Law | Updated October 2026

IPC Section 169 and BNS Section 203: Public Servant Unlawfully Buying or Bidding for Property

A public servant who is legally prohibited from buying or bidding for specified property may commit a criminal offence by doing so, including through another person or jointly with others. The current provision is Section 203 of the Bharatiya Nyaya Sanhita, 2023 (BNS), corresponding to former Section 169 of the Indian Penal Code, 1860 (IPC).

Current legal position: The BNS came into force on 1 July 2024 and repealed the IPC, subject to statutory savings. For conduct occurring before that date, the former IPC provision and applicable saving rules may remain relevant. For subsequent conduct, refer to BNS Section 203.

Meaning and scope of the offence

Section 203 is contained in Chapter XII of the BNS, dealing with offences by or relating to public servants. Its purpose is to enforce legal restrictions that prevent a public servant from acquiring property in circumstances where the servant is legally disqualified from purchasing or bidding for it.

The offence is not a general prohibition on public servants owning property. The prosecution must identify a legally binding restriction applicable to the public servant and the property or transaction concerned. The prohibition extends to indirect and shared transactions.

Text of BNS Section 203

Whoever, being a public servant, and being legally bound as such public servant, not to purchase or bid for certain property, purchases or bids for that property, either in his own name or in the name of another, or jointly, or in shares with others, shall be punished with simple imprisonment for a term which may extend to two years, or with fine, or with both; and the property, if purchased, shall be confiscated.

Source: Official Bharatiya Nyaya Sanhita, 2023, India Code (PDF).

Essential ingredients of the offence

  1. Status as a public servant: The accused must fall within the applicable statutory meaning of a public servant.
  2. Existing legal prohibition: The accused must be legally bound, in the capacity of a public servant, not to purchase or bid for the particular property.
  3. Purchase or bid: The accused must purchase or bid for the prohibited property.
  4. Direct or indirect participation: The transaction may be in the accused's name, another person's name, jointly, or in shares with other persons.

Whether these elements are proved depends on the legal restriction, auction or sale records, ownership documents and other admissible evidence. An alleged breach of a departmental policy does not automatically establish every element of the criminal offence; the nature and legal force of the restriction must be examined.

Punishment and confiscation

ConsequenceProvision
ImprisonmentSimple imprisonment for a term extending up to two years
FineFine may be imposed instead of imprisonment or together with it; Section 203 does not specify a fixed fine amount
ConfiscationIf the property has been purchased, the section provides that it shall be confiscated

A bid may attract the offence even if no purchase is completed. The express confiscation consequence concerns property that has actually been purchased.

IPC Section 169 compared with BNS Section 203

FeatureFormer IPC Section 169Current BNS Section 203
LegislationIndian Penal Code, 1860Bharatiya Nyaya Sanhita, 2023
SubjectPublic servant unlawfully buying or bidding for propertySame subject
Maximum imprisonmentTwo years, simpleTwo years, simple
Other consequencesFine or both; confiscation if purchasedFine or both; confiscation if purchased
ApplicationHistorical conduct, subject to savingsConduct governed by BNS from 1 July 2024

The statutory language and prescribed punishment of the corresponding provisions are substantially the same. The official National Crime Records Bureau correspondence table identifies IPC Section 169 with BNS Section 203.

Illustrative example

Suppose a government officer is legally barred from bidding for a specified property being sold in connection with the officer's official duties. If the officer arranges for a relative to bid on the officer's behalf, the use of another person's name does not by itself avoid Section 203. Liability still requires proof of the applicable legal prohibition and the relevant facts.

Difference from other property bidding offences

BNS Section 203 focuses on a public servant personally subject to a legal prohibition against buying or bidding. BNS Section 220 separately addresses certain illegal purchases or bids at sales conducted under the lawful authority of a public servant, including bids made for persons known to be legally incapable of purchasing at that sale. The elements of the two offences should not be confused.

Frequently asked questions

What is the current equivalent of IPC Section 169?

Section 203 of the Bharatiya Nyaya Sanhita, 2023.

Is every property purchase by a government employee illegal?

No. The offence requires a legal prohibition applicable to the public servant and the specified property. Other service, disclosure or conduct rules may separately apply.

Can buying through a relative or nominee be covered?

Yes. The statutory wording includes buying or bidding in another person's name, as well as joint or shared participation.

What is the maximum punishment?

Simple imprisonment for up to two years, or fine, or both. If the property was purchased, the provision also requires confiscation.

Does the old IPC Section 169 still matter?

Yes. It can remain relevant to conduct before 1 July 2024 under the applicable repeal and saving provisions.

Official legal references

This article provides general legal information. Application to a specific case requires examination of the law in force on the date of the alleged act, the legal prohibition involved and the available evidence.