Section 202 BNS: Public servant unlawfully engaging in trade

Bharatiya Nyaya Sanhita, 2023

Section 202 BNS at a Glance

Section 202 BNS deals with public servant unlawfully engaging in trade. It is bailable and non-cognizable, triable by Magistrate of the first class; it replaced Section 168 IPC on 1 July 2024.

Punishment

Simple imprisonment for up to one year, or community service.

Bailable โ“˜Non-Cognizable โ“˜Non-Compoundable โ“˜๐Ÿ›๏ธ Magistrate of the first class โ“˜
IPC Equivalent

Section 168 โ†’

Section 202 BNS Bare Act Text

202. Public servant unlawfully engaging in trade

Whoever, being a public servant, and being legally bound as such public servant not to engage in trade, engages in trade, shall be punished with simple imprisonment for a term which may extend to one year, or with fine, or with both or with community service.

Source: Section 202, Bharatiya Nyaya Sanhita, 2023

Section 202 BNS in Simple Words

Section 202 of the Bharatiya Nyaya Sanhita (BNS) deals with a public servant who is legally bound as such public servant not to engage in trade, but still engages in trade. The rule is meant to prevent conflict of interest and misuse of official position. It applies only when the person is a public servant and is under a legal obligation not to engage in trade. In practical terms, this section targets conduct that may not look fraudulent at first sight, but still breaches public duty.

For example, if a government officer is legally bound not to engage in trade and runs a commercial business for personal gain, this section applies. The offence is punishable with simple imprisonment for up to one year, or with fine, or with both, or with community service. It protects discipline, neutrality, and public trust in government service.

Ingredients of Section 202 BNS

  • A public servant who is legally bound, as such public servant, not to engage in trade
  • Engaging in trade by that public servant
  • Punishment by simple imprisonment for up to one year, or fine, or both, or community service

Punishment Under Section 202 BNS

Imprisonment

Simple imprisonment for up to one year, or community service.

Fine

The offender may be punished with fine alone or with both simple imprisonment and fine, or with community service. The section sets no limit on the fine.

Bailable โ“˜Non-Cognizable โ“˜Non-Compoundable โ“˜๐Ÿ›๏ธ Magistrate of the first class โ“˜

Engaging in trade as a public servant legally bound not to do so carries simple imprisonment for up to one year, or fine, or both, or community service.

Example of Section 202 BNS

Meera is a public servant who is legally bound, as such public servant, not to engage in trade. She opens a stall in the weekly market and buys and sells goods there. She engages in trade while bound not to do so and is liable under Section 202 BNS.

When Section 202 BNS Does Not Apply

  • The accused is not a public servant
  • The accused is a public servant but is not legally bound, as such public servant, not to engage in trade
  • The accused does not engage in trade
  • The public servant is legally bound not to purchase or bid for certain property and does so, which is punished under Section 203 BNS

Section 202 BNS in the IPC (Previous Law)

Section 202 BNS replaces Section 168 IPC from the old criminal code.

Section 168 IPC is now Section 202 BNS, with the same title and the same words. Section 202 BNS adds community service as a further alternative punishment. The simple imprisonment of up to one year and the fine are the same.

View IPC Section 168 โ†’

FAQs on Section 202 BNS

Who can be punished under Section 202 BNS?โ–ผ

Only a public servant can be punished under this provision. The prosecution must also show that the person was legally bound, as such public servant, not to engage in trade. A private person cannot be booked under this section.

Under Section 202 BNS, does every business activity by a government employee count as an offence?โ–ผ

No. The section applies only where the public servant is legally bound, as such public servant, not to engage in trade. If there is no such legal bar, this section does not apply.

What is the punishment under Section 202 BNS?โ–ผ

The punishment is simple imprisonment for a term which may extend to one year, or fine, or both, or community service. The exact amount of fine is not specified in the text.

Why was Section 202 BNS made?โ–ผ

The law aims to keep public servants free from private commercial interest where the law forbids engaging in trade. It protects fairness in administration and reduces the risk of misuse of office for personal profit.

Have questions about Section 202 BNS?

Ask NyayGuru for a plain language explanation, punishment details, or how it applies to your situation.

Ask NyayGuru โ†’

Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Bharatiya Nyaya Sanhita, 2023 ยท Last updated: 16 Oct 2026 ยท