Section 203 BNS: Public Servant Unlawfully Buying or Bidding for Property (Formerly Section 169 IPC)

Section 203 of Bharatiya Nyaya Sanhita: Public Servant Unlawfully Buying or Bidding for Property

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

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.

Legal Commentary & Landmark Judgments: Section 203

Section 203 punishes public servants who bid for, purchase, or acquire an interest in property offered for public auction or sale under their official authority or jurisdiction.

Official Authority: The public servant exercises official control, supervision, or conduct over the public sale or auction of attached or public property.
Prohibited Acquisition: The public servant bids for, purchases, or secures a beneficial interest in the property, either in their own name or through a benamidar.
Conflict of Interest: The statutory bar is absolute to prevent abuse of distress sales, revenue attachments, or judicial auctions.

Key Landmark Precedents:

G.V. Rao v. L.H.V. Prasad (2000) 3 SCC 693: Emphasised that public servants conducting court or revenue auctions stand in a fiduciary capacity; clandestine acquisition undermines public trust in administrative executions.
Radhakrishna Agarwal v. State of Bihar (1977) 3 SCC 457: Affirmed that statutory execution auctions must maintain scrupulous integrity and any insider bidding by auctioning officers is void and criminal.

Courtroom Practice & Strategic Litigation Guidance:

Litigators must trace beneficial ownership through banking channels, benami declarations, and family links. The property purchased must be forfeited to the State upon conviction.

Section 203: Public Servant Unlawfully Buying or Bidding for Property

Section 203 of Bharatiya Nyaya Sanhita: Public Servant Unlawfully Buying or Bidding for Property

Legal Commentary & Landmark Judgments: Section 203