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Section 203 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 203 specifically deals with public servants making unauthorised purchase of immovable property. Let us take a closer look at its provisions.

Definition of BNS Section 203

Section 203 of the Bharatiya Nyaya Sanhita (BNS), 2023 states:
“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.”

Explanation and Illustration of Section 203 (Bharatiya Nyaya Sanhita, 2023)

Section 203 deals with contravening prohibitions and restrictions that have been expressly laid down for public servants during the course of their employment with a government body. One such restriction is on the purchase of property. Let us first understand these restrictions.

There are several legislations that govern the code of conduct of employees. There is the Central Civil Services Conduct Rules, 1964. Then there are separate rules for employees of each state government. For instance employees of the Tamil Nadu government will follow the Tamil Nadu Government Servants' Conduct Rules, 1973. Further, various government organisations have their own set of rules for their respective 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 purchase of property goes:

  • Government employees must notify the prescribed authority of any property they acquire or dispose of. They must also inform the government of any inherited property and declare all immovable property.
  • Government employees need prior sanction to acquire immovable property outside India, or to dispose of immovable property outside India. They also need prior sanction to enter into transactions with foreigners, foreign governments, or foreign organisations.
  • Government employees must report transactions involving movable property that exceed certain monetary limits within one month.
  • Government employees cannot purchase land for commercial purposes, unless they are collecting revenue or administering justice.
  • Government employees cannot purchase land within their revenue district, except for a house-site or ready-built house.

  • The purpose of these restrictions is to mainly deter occurrences of corruption. Government employees are strictly forbidden from having sources of income in addition to their income from their primary employment with the government. This is the reason they are prohibited from buying commercial property. And while they are allowed to purchase property in most cases, there are very strict authorisation and disclosure requirements for such purchases. This allows the government to monitor if any employee owns property that is not commensurate with their remuneration.

    Section 203 deals with public servants who have been expressly prohibited from buying any property. So when a public servant buys property without seeking the necessary authorisation, or buys property after having been denied the permission to purchase such property by the authorities in charge, then he or she shall be prosecuted as an offender under the provisions of this section. It further clarifies that even if the prohibited property is jointly held or found to be held by someone else on behalf of the government employee, even then he or she shall be prosecuted to the full extent of the provisions of section 203.

    It is important to note that even bidding for prohibited property is considered an offence under this section. So even if the employee does not actually buy the property but is merely found to be bidding, then he will be prosecuted to the full extent of the provisions of this section, because criminal intent is treated with the same severity as a criminal act under the BNS.

    The punishment for offence under Section 203 is 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.

    The word “knowingly” has not been mentioned in this section, unlike other sections, as purchasing unauthorised property 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 Section 203

    This section deals with: Unlawful purchase or bid for property by a public servant.

    Description of offence:

  • Any public servant found purchasing or bidding for property without due permission or authorisation, when the direction of the law specifically requires them to do so, shall be considered an offender under Section 203.

  • Punishment for offence:
  • Any person found guilty under Section 203 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.

  • Exceptions to offence:
  • The offender has been coerced into committing the offence
  • The person is not of sane mind
    1. Differences Between Section 203 of BNS 2023 and its Equivalent IPC Section

      The BNS came into force on July 1, 2024, effectively replacing the Indian Penal Code. Section 203 of BNS replaces IPC Section 169. 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/SubsectionsSubjectIPC SectionsSummary of Comparison
      203Public servant unlawfully buying or bidding for property.169No change in provisions for offence.

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      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:

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      FAQs about Section 203 of the Bharatiya Nyaya Sanhita (BNS)

      Any person found guilty under Section 203 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
      No. A public servant who has been prohibited from purchasing or bidding for property as a requirement in the course of their duty cannot purchase or bid for property even indirectly. Any public servant found doing so shall be considered an offender.
      No. Section 203 only applies to public servants in employ of the Government of India.
      If a public servant is required to take prior permission or authorisation before purchasing or bidding for a property, then he or she should have the written permission / authorisation prior to the purchase or placing a bid for the property.
       Section 203 of BNS

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