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The temperature dependence of magnetization and dielectric constant of polycrystalline Ba3NbFe3Si2O14 clearly indicates the presence of magnetically driven ferroelectric transition at 26 K, the Néel temperature TN, depicting its multiferroic behavior. The isothermal magnetization variation with the field both below and above TN however exhibits a hysteresis behavior with coercivity varying from 1600 Oe to 2500 Oe. These results combined with structural studies indicate the presence of multiple phases which are electronically and not structurally phase separated, similar to the phenomenon observed in magentoresistive perovskite compounds. [ABSTRACT FROM PUBLISHER]