What is IPC Section 168?
IPC Section 168 sits in Chapter IX of the Indian Penal Code, "Of Offences by or Relating to Public Servants," alongside a cluster of provisions addressing specific forms of conflict of interest and abuse of official position (Sections 166–171). Where Section 166 addresses a public servant disobeying the law with intent to cause injury, and Section 169 addresses a public servant unlawfully buying or bidding for property they are prohibited from acquiring, Section 168 specifically targets the risk that a public servant's own private trading or business interests could compromise the objectivity and integrity expected of their official role.
The legal restriction against engaging in trade typically flows from conduct rules and service regulations applicable to the specific category of public servant — such as the All India Services (Conduct) Rules or similar rules governing central and state government employees — which generally prohibit government servants from engaging in trade or business without prior government sanction.
Important Update: IPC to BNS Transition
With effect from 1 July 2024, the Indian Penal Code has been replaced by the Bharatiya Nyaya Sanhita (BNS), 2023 for offences committed on or after that date. Section 168 IPC now corresponds to Section 202 of the BNS, which retains the same substantive scope while adding community service as an additional sentencing option alongside imprisonment and fine.
Legal Provision — Text of Section 168 IPC
This provision must be read together with Section 169, which addresses the related but distinct offence of a public servant unlawfully buying or bidding for property they are legally prohibited from purchasing — both provisions form part of the Code's broader framework for preventing public servants from using their official position, or the access and influence it provides, for improper private financial gain.
Punishment Under Section 168
| Punishment | Simple imprisonment up to 1 year, or fine, or both |
|---|---|
| Nature of Offence | Non-cognizable — police generally require a Magistrate's order to investigate or arrest |
| Bailable / Non-Bailable | Bailable — bail is a matter of right |
| Compoundable | Non-compoundable |
| Triable By | Magistrate of the First Class |
Although the punishment is comparatively modest, a conviction under Section 168 can carry significant additional consequences for a public servant beyond the criminal penalty itself — including departmental disciplinary proceedings, loss of position, and reputational harm, since it directly implicates the integrity expected of public office.
Key Ingredients / Essential Elements
The accused must be a public servant
The offence applies specifically to a person holding the status of a public servant under the Code.
A legal bond not to engage in trade
The public servant must be legally bound, in that specific capacity, not to engage in trade — typically through applicable service rules or conduct regulations.
Engaging in trade despite this restriction
The public servant must have, in fact, engaged in trade despite the legal restriction against doing so.
What Should You Do — For Complainants and For the Accused
If You Suspect a Public Servant of Unlawful Trade
- Gather evidence of the specific trading or business activity, including its connection to the public servant's official position or duties.
- Identify the specific service rule or regulation that legally binds the public servant not to engage in trade.
- File a complaint before the appropriate Magistrate, since the offence is non-cognizable, and consider a parallel departmental or vigilance complaint.
- Consult a lawyer about whether related offences, such as corruption or criminal misconduct provisions, may also be engaged depending on the facts.
If You Are Accused Under Section 168
- Consult a criminal lawyer promptly to assess whether the specific activity genuinely qualifies as "engaging in trade" under the applicable rules.
- Gather evidence if you had proper government sanction or exemption for the activity in question, since this can be a complete defence.
- Being bailable, you are entitled to bail as a matter of right.
- Consider the likely parallel departmental consequences, and consult with counsel on managing both the criminal and disciplinary proceedings together.
How Section 168 Relates to Neighbouring Provisions
- Section 166 punishes a public servant disobeying the law with intent to cause injury to any person.
- Section 168 (this section) punishes a public servant unlawfully engaging in trade.
- Section 169 punishes a public servant unlawfully buying or bidding for property they are legally prohibited from purchasing, in their own name or another's.
- The Prevention of Corruption Act, 1988 provides a separate, more specialised framework addressing corruption and criminal misconduct by public servants, which may operate alongside these IPC provisions depending on the specific facts.