Gujarat to sell stamp papers via banks

Order to come into efFect on April 1

The Gujarat government has decided to sell stamp and stamp papers through banks from April 1.

"At present stamps and stamp papers are sold through vendors who charge higher prices. They also create an artificial shortage of stamp papers. There are also other irregularities related to the sale of stamp papers," a co-operative department official said.

"From April 1 onwards stamps and stamp papers in the state would be sold through nationalised banks. This would make inventory control easy," the official said.

The facility would be first introduced in cities, and subsequently in rural areas. Banks would be paid commission at the existing rates on the sale of stamp papers. Sources said many banks have already agreed to sell stamps and stamp papers through their branches.

As the move will result in revoking the licences of stamp vendors, more than 50 stamp vendors in Surat made a representation to the district collector on Tuesday.

Vendors stated in the representation: "The state government has decided to cancel our licences and start the sale of stamp papers through banks from April 1. We stand to lose our only source of income if the decision is implemented."

"In the interest of thousands of stamp vendors across the state, we request the state government to reconsider the decision with regards to the new policy," the representation added.

The Rs 30,000 crore fake stamp paper scam, with its roots in Maharashtra, had rocked the nation. There is evidence that the scam had deep roots in Gujarat as at least four Surat-based people have been arrested in connection with the case.

Sources said a fake stamp paper racket was busted in Surat around two years back with the detection of fake stamp papers at Surat Electricity Company and the Surat city branch of Life Insurance Corporation.

A couple was arrested in this connection by the city police at that time. One more accused, identified as Shyamrao Bhatle, was arrested from his house in Sandhya Flats, Adajan, by CBI officials on June 11 earlier this year.

Bhatle, alleged to have links with Abdul Karim Telgi, the kingpin in the fake stamp paper scam, had supplied fake stamp papers in the city. Raju alias Kishore Patel, an accomplice of Shyamrao Bhatle, was arrested by the Surat police from Rajkot on a transfer warrant on July 12. Two other accused in the case are yet to be arrested.

In November the Maharashtra government had announced plans to authorise nationalised banks to sell and frank stamp paper on a commission basis. The Reserve Bank of India had given in-principle permission to some of the nationalised banks and private banks for this.

Cleaning up act

• State to revoke licences of stamp paper vendors
• Move expected to curb artificial paper shortage
• System to be first introduced in cities
• Many banks have agreed to take the plunge
• 50 stamp vendors in Surat oppose the move