Systemic failure in stamp scam: FM

Finance Minister Jaswant Singh said the value of the fake stamp papers recovered by various investigative agencies was Rs 3,376 crore.

Speaking in the Lok Sabha on a calling attention motion on the stamp paper scam, the minister said the agencies had registered 74 cases in in this connection, with 15 against chief accused Abdul Karim Telgi.

Singh said while several figures had been given out on the value of the scam, they were all speculative. He added since most of the stamp duties were payable to state governments, the loss of revenue for the Centre had been very little.

He said the government would recognise as genuine all transactions executed on stamp papers within the country. He said, "There will be no legal infirmity on any such documents and, if necessary, the government will introduce a Bill in the House."

Singh said the new stamp papers with improved security features would be available across the country by July, 2004. The minister said the government was committed to find a remedy to the problem and said a number of measures were under way "to eliminate the virus".

He also said the income tax department, under the Director General (Investigations), was examining the various dimensions of the case. The agencies had seized 47 properties and several bank accounts of Telgi, he said.

The minister acknowledged that the full contours of the scam was not visible to him when Karnataka Chief Minister S M Krishna wrote to him last year.

Singh said he had only acknowledged the letter at that point because there was no indication of organised crime.

But by March 2003, the finance ministry had written to all the chief ministers asking them to name officials who could be involved in circulating fake stamp papers.

Subsequently, the revenue secretaries of all state governments decided to keep a track on the developments. The minister said the Central Bureau of Investigation was at present investigating seven cases. The finance ministry had also asked it to take up the cases against some officials of the Indian Security Press at Nashik.