Consult an Expert
Business Setup
Prefer to talk to a business advisor first?
Book a call backTax & Compliance
Prefer to talk to a business advisor first?
Book a call backTrademark & IP
Prefer to talk to a business advisor first?
Book a call backDocumentation
Prefer to talk to a business advisor first?
Book a call backOthers
Prefer to talk to a business advisor first?
Book a call back
Consult an Expert
Business Setup
Tax & Compliance
Trademark & IP
Documentation
Others
More
Consult an Expert
Business Setup
International Business Setup
Company Name Search
Licenses & Registrations
Web Development
Tax & Compliance
GST and Other Indirect Tax
Changes in Pvt Ltd Company
Changes In Limited Liability Partnership
Mandatory Annual Filings
Labour Compliance
Accounting & Tax
Trademark & IP
Trademark
Design Registration
Documentation
Free Legal Documents
Business Contracts
Personal & Family
Notices
HR Policies
Others
Calculator
NGO Registration
NGO Compliance
Licenses & Registrations
Name Change & Other Conditiions
File an e-FIR
Marriage
File a Consumer Complaint
Lawyer Services
Login
BNS Section 202: Public Servant Unlawfully Engaging In Trade
Section 202 falls under Chapter 12 of the Bharatiya Nyaya Sanhita (BNS). Chapter 12 covers offences by or relating to public servants. Each section under this chapter deals with different offences related to specific actions that would be in contravention of a public servant’s code of conduct, legal obligation and duty. Section 202 specifically deals with a public servant found engaging in unauthorised commercial transactions. Let us take a closer look at its provisions.
Definition of BNS Section 202
Section 202 of the Bharatiya Nyaya Sanhita (BNS), 2023 states:
“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.”
Explanation and Illustration of Section 202 (Bharatiya Nyaya Sanhita, 2023)
Section 202 deals with public servants engaging in unauthorised commercial transactions. Let us first understand what kind of restrictions are imposed on government employees in India as far as conducting trade is concerned. There are several provisions under different acts that prescribe the code of conduct of public servants. The two most important legislations in this regard are the Central Civil Servants Rules, 1965 and the All India Services (Conduct) Rules, 1968. State governments have their own legislations for state and local body employees. Then different government organisations have their own specific rules for their own employees. For instance, the Securities Printing and Minting Corporation of India has the SPMCIL Conduct, Discipline and Appeal Rules, 2020 for its employees, containing very specific rules for its purposes. Similarly, SEBI has its own code of conduct for its employees. But by and large, government employees have the following restrictions as far as commercial ventures outside the scope of their employment with the government is concerned. They cannot:
Trade also includes trading in stock markets and publicly listed securities as well. However, in every section where such restrictions have been specified, there are also the words “without government approval.” This implies that in some cases, the government may allow a government employee to participate in trade depending on the situation or circumstance. That is why section 202 states that this section applies to government employees legally bound not to engage in trade. An employee, who without any government approval participates in any kind of trading activity he or she shall be punishable with simple imprisonment which may extend to one year, or with fine, or with both or with community service.
The word “knowingly” has not been mentioned here, unlike other sections, as engaging in trading activities is one of the foremost prohibitions that a government employee if apprised with at the time of joining their duty. In other words, there is no scope for pleading ignorance in this matter.
Disclaimer: The examples provided are for educational purposes only and do not constitute legal advice. They should not be used for legal proceedings or decision-making. For specific legal matters, please consult a qualified legal professional.
Key Points in BNS 202
This section deals with: Public servants engaging in trade.
Description of offence:
Punishment for offence:
Exceptions to offence:
Differences Between Section 202 of BNS 2023 and its Equivalent IPC Section
The BNS came into force on July 1, 2024, effectively replacing the Indian Penal Code. Section 202 of BNS replaces IPC Section 168. Let us look at the changes that have been made in the provisions of the new section in comparison to the old one.
| BNS Sections/Subsections | Subject | IPC Sections | Summary of Comparison |
|---|---|---|---|
| 202 | Public servant unlawfully engaging in trade. | 168 | "Community service" was not one of the punishments under the previous code. It has been included newly under the BNS. |
Why Choose Vakilsearch for Bharatiya Nyaya Sanhita (BNS)?
Understanding the new Bharatiya Nyaya Sanhita (BNS) laws can be confusing, but Vakilsearch is here to make it easy for you. Here’s why we’re the right choice:
- Expert Help: Our lawyers know the BNS sections inside out and can guide you through how the new laws apply to you or your business.
- Simple and Clear: We break down all the legal jargons into simple language, so you can easily understand what steps to take.
- Personalised Service: Whether you need help with specific BNS sections for women or other legal concerns, we provide advice and support tailored to your situation.
- Experienced Team: We’ve helped thousands of clients understand about the old IPC sections, and now we’re ready to help you transition smoothly to the new BNS laws.
FAQs about Section 202 of the Bharatiya Nyaya Sanhita (BNS)
Talk To Experts
Calculators
Downloads
By continuing past this page, you agree to our Terms of Service , Cookie Policy , Privacy Policy and Refund Policy © - Uber9 Business Process Services Private Limited. All rights reserved.
Uber9 Business Process Services Private Limited, CIN - U74900TN2014PTC098414, GSTIN - 33AABCU7650C1ZM, Registered Office Address - F-97, Newry Shreya Apartments Anna Nagar East, Chennai, Tamil Nadu 600102, India.
Please note that we are a facilitating platform enabling access to reliable professionals. We are not a law firm and do not provide legal services ourselves. The information on this website is for the purpose of knowledge only and should not be relied upon as legal advice or opinion.
