IPC 168: Public Servant Unlawfully Engaging in Trade – Indian Penal Code

1. Code

Section 168 of the Indian Penal Code (IPC) states:
“Whoever, being a public servant, directly or indirectly, engages in any trade or business, except with the sanction of the Government, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.”

2. Explanation

This section prohibits public servants from engaging in any trade or business without the explicit permission of the government. The objective of this law is to prevent potential conflicts of interest and to ensure that public servants prioritize their official duties over personal financial gains.

• Public servant: This includes individuals holding government positions, such as civil servants, police officers, judges, and elected representatives.
• Trade or business: This refers to any activity undertaken for profit, including commercial ventures, private enterprises, and professional practices.
• Sanction of the Government: This means obtaining specific authorization from the relevant government authority to engage in the particular trade or business.

3. Illustration

Suppose a government official working in the department of agriculture secretly runs a private company selling agricultural fertilizers. This would be a violation of IPC 168, as the official is engaging in trade without government sanction.

4. Common Questions and Answers

Q: What if a public servant engages in a small-scale business like selling vegetables from their home garden?

A: This could still be considered a violation of IPC 168. The law does not specify the scale of the trade, and even a small-scale business might be seen as a conflict of interest.

Q: What are the exceptions to this rule?

A: Some exceptions exist. For example, a public servant may be allowed to engage in agricultural activities if it’s a small-scale operation and doesn’t interfere with their official duties. However, these exceptions are limited and require specific authorization from the government.

Q: What are the consequences of violating IPC 168?

A: A public servant found guilty of violating IPC 168 can face imprisonment for up to two years, a fine, or both.