Abdul Karim Telgi, the alleged brain behind the multi-crore stamp paper scam, is believed to have taken advantage of this scarcity by selling fake stamps during this period.
Officials said the scarcity of stamp paper created by the government security presses at Nashik and Hoshangabad pointed to the involvement of finance ministry officials in the scam.
When contacted, finance ministry officials said the ministry would ask the CBI to look into the scam, as per the directions of the Allahabad High Court.
The officials admitted that there was a scarcity of stamp paper between 1998 and 2000, but said a sudden increase in production was not always feasible.
The CBI has registered a case on the involvement of employees of the two security presses. What appears to have alarmed the government is the report by intelligence agencies linking the Telgi scam with underworld operations in Dubai and Pakistan.
The officials said former Finance Minister Yashwant Sinha had ordered a probe into the issue, but it was not fruitful.
