Section 169 punishes any public servant who buys property while in service.

It only applies when the public servant is under a specific legal duty not to purchase or bid for that particular property — such as an officer conducting its sale or auction — not to property purchases in general.

Buying property through a relative's or friend's name avoids liability.

The section expressly covers purchases made in another's name, jointly, or in shares with others, so using a proxy does not escape the offence.

Indian Penal Code, 1860

Section 169

repealed

Public servant unlawfully buying or bidding for property

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.§

Why this exists

Colonial-era administrators often supervised sales of property — for unpaid revenue, in insolvency, or under court decrees. If the very official conducting such a sale could secretly buy the property himself (or through a proxy), he could manipulate the price, discourage other bidders, or exploit insider knowledge. Section 169 was drafted to close this conflict-of-interest loophole and preserve public trust in official sales and auctions.

How courts read it

Courts have generally read this section narrowly and technically: prosecution must show (1) the accused was a public servant, (2) a specific legal rule or duty barred that servant from buying or bidding for the particular property in question, and (3) the servant nonetheless purchased or bid for it, directly or through a benamdar (name-lender) or in partnership. Judgments have emphasised that a general moral duty is not enough — there must be a concrete legal prohibition (arising from service rules, statute, or the terms of the office) specific to that property or sale.

Common misconceptions

Myth: Section 169 punishes any public servant who buys property while in service.
Fact: It only applies when the public servant is under a specific legal duty not to purchase or bid for that particular property — such as an officer conducting its sale or auction — not to property purchases in general.
Myth: Buying property through a relative's or friend's name avoids liability.
Fact: The section expressly covers purchases made in another's name, jointly, or in shares with others, so using a proxy does not escape the offence.