Bharatiya Nyaya Sanhita, 2023
Section 203
Public servant unlawfully buying or bidding for property
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.
Why this exists
Public servants often supervise auctions, sales, or transfers of government or attached property—for example, land revenue sales, court auctions, or confiscated goods. If such an official could quietly buy that very property himself or through a relative, he could misuse his position for personal profit, manipulate prices, or unfairly block genuine bidders. This provision, inherited from colonial-era law (earlier Section 169 of the Indian Penal Code, 1860), exists to keep public officials from turning their duty into a conflict of interest.
Common misconceptions
- Myth: The official is safe if the property is bought in someone else's name.
Fact: The law explicitly covers purchases made in another person's name, jointly, or in shares—not just purchases in the official's own name. - Myth: This applies to all government employees regardless of their duties.
Fact: It only applies when the person is 'legally bound' by their specific official role not to purchase or bid on that particular property—not to public servants generally.