As a passenger traveling on Indian Railways we should always remember that unauthorized buying and selling of reserved tickets is an offence under Section 143 of the Railways Act.
The penalty for unauthorized purchase and sale of tickets will be a fine of Rs.10,000/- or imprisonment up to three year. Passengers who buy tickets from unauthorized travel agents may lose both their tickets and the reserved accommodation, if such tickets are impound during checking by the concerned authorities.
Traveling under another person's name is an offence under Section 142 of the Railways Act which pertains to travel on transferred tickets. Passengers who purchase transferred tickets are likely to be detrained, fined and even prosecuted. The penalty for transfer of tickets will be a fine of Rs.500/- or imprisonment up to 3 months or both.