Section 168 IPC: Public servant unlawfully engaging in trade

Indian Penal Code, 1860

Section 168 IPC at a Glance

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

Punishment

Simple imprisonment for up to one year.

Bailable β“˜Non-Cognizable β“˜Non-Compoundable β“˜πŸ›οΈ Magistrate of the first class β“˜
BNS Equivalent

Section 202 β†’

Section 168 IPC Bare Act Text

168. 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.

Source: Section 168, Indian Penal Code, 1860

Section 168 IPC in Simple Words

Section 168 of the Indian Penal Code (IPC) punishes a public servant who is legally bound, as such public servant, not to engage in trade and engages in trade. The punishment is simple imprisonment for up to one year, or fine, or both. The offence is non-cognizable and bailable, and a Magistrate of the first class tries it.

Ingredients of Section 168 IPC

  • The accused is a public servant
  • The accused is legally bound, as such public servant, not to engage in trade
  • The accused engages in trade

Punishment Under Section 168 IPC

Imprisonment

Simple imprisonment for up to one year.

Fine

The offender may be punished with fine alone or with both imprisonment and fine. The section sets no limit.

Bailable β“˜Non-Cognizable β“˜Non-Compoundable β“˜πŸ›οΈ Magistrate of the first class β“˜

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.

Example of Section 168 IPC

In 2019 in Jaipur, Devendra served as a state revenue inspector and was therefore a public servant. Under the service rules governing his post, Devendra was legally bound as such public servant not to engage in trade. While holding that office, he started a wholesale timber business in Jaipur, regularly purchasing timber from sawmills and selling it to furniture makers for profit. Because Devendra was a public servant, was legally bound as such public servant not to engage in trade, and nevertheless engaged in trade, Devendra is punishable under Section 168 IPC.

When Section 168 IPC Does Not Apply

  • The person carrying on the business is a private individual and not a public servant.
  • The public servant is permitted by the rules of his office to carry on trade and is under no legal prohibition as such public servant against doing so.
  • The public servant is legally barred from trading, but his conduct does not amount to engaging in trade.
  • Instead of engaging in trade, the public servant buys or bids for a specific property that he is legally bound as such public servant not to purchase or bid for, which falls under Section 169 IPC.

Section 168 IPC in the BNS

Section 168 IPC is now covered under Section 202 BNS.

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 detailed comparison (IPC 168 vs BNS 202) β†’

FAQs on Section 168 IPC

What does Section 168 IPC provide?β–Ό

It punishes a public servant who is legally bound, as such public servant, not to engage in trade and engages in trade.

What is the punishment under Section 168 IPC?β–Ό

Simple imprisonment for up to one year, or fine, or both.

Who can be punished under Section 168 IPC?β–Ό

Only a public servant who is legally bound, as such public servant, not to engage in trade. A public servant who is not so bound is outside the section.

How does Section 168 IPC differ from Section 169 IPC?β–Ό

Section 168 IPC punishes a public servant legally bound not to engage in trade who engages in trade. Section 169 IPC punishes a public servant legally bound not to purchase or bid for certain property who purchases or bids for it. Section 169 IPC also provides that the property, if purchased, is confiscated.

Is an offence under Section 168 IPC cognizable and bailable?β–Ό

It is non-cognizable and bailable.

Which court tries an offence under Section 168 IPC?β–Ό

A Magistrate of the first class.

Can an offence under Section 168 IPC be compounded?β–Ό

No. It is not listed in Section 320 CrPC.

Where is Section 168 IPC in the Bharatiya Nyaya Sanhita?β–Ό

In Section 202 BNS.

Have questions about Section 168 IPC?

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

Sources: Bare Act Text, Indian Penal Code, 1860 Β· Last updated: 16 Oct 2026 Β·