Whoever, being a public servant, and being legally bound as such public servant not to engages 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.

Simply Put

This section means if a public servant who is not allowed to be apart with illegal trade if does so than such an officer shall be imprisoned for a period which may extend to 1 year or with fine or both. For eg. A a police officer is involved in Narcotics and drugs trade, he shall be punished under this section.

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