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Stamp Paper Scam or Ghotala India

Abdul Kareem Telgi, the prime accused in the stamp paper scam, being escorted out of the court after his bail plea was rejected, in Bangalore on September 15.

Looking at its progress till now, i doubt there will be any prosecution or a judgement comes any near future.

ACROSS 72 towns and 18 States and over a period of 10 years, the counterfeit stamp paper scam has dealt the Indian economy a shattering Rs.32,000-crore blow. The figure is official. Apprehensions are that it could be much higher.

It was an operation that respected no system and thrived on the brittle moral fabric of the bureaucracy and its political bosses, exposing the inadequacies of the system. Be it in Maharashtra, where it originated, or in Andhra Pradesh, where it spread its net, or in Karnataka and other States, where it flourished, the scam left a trail of stink that every party is trying to cover up. The scam also throws light on the culpability of officials and political leaders and is yet another piece of evidence of the criminalisation of politics.

From West Bengal to Tamil Nadu and from Uttar Pradesh to Rajasthan, several States figured in the scam and each has lost huge revenues. If the revenue loss in Maharashtra was worth Rs.2,200 crores, the loss was said to be of the order of Rs.1,000 crores a year in A.P. The Karnataka government’s annual revenue from the sale of stamp paper was worth Rs.250 crores when Abdul Kareem Telgi, the prime accused in the racket, was arrested. After his arrest, the revenue was in excess of Rs.750 crores.

A shortage of stamp paper engineered with the help of a few officials of the Indian Security Press at Nashik enabled Telgi to expand his illegal business throughout the country.

Telgi’s agent in the south, who explored the loopholes and established a network in at least four States, Maharashtra, A.P., Karnataka and Tamil Nadu, was Sheik Waheed.

The operation involved the sale of not only counterfeit stamp paper but also related items such as judicial court fee stamps, non-judicial stamps, revenue stamps, special adhesive stamps, notorial stamps, foreign bills, brokers notes, insurance policies, share transfer certificates and insurance agency stamps. The Special Investigating Team (SIT) of the Maharashtra Police put the total value of the scam at Rs.21,28,47,07,824. Later this was revised to Rs.32,000 crores by the Union Home Secretary. The biggest haul was made by the police in Maharashtra when stamps worth Rs.2,500 crores were seized, followed by Delhi (Rs.214 crores), Karnataka (Rs.205 crores) and A.P. (Rs.19.70 crores). The SIT is yet to ascertain the business that could have occurred in Tamil Nadu and in North India. In U.P. the complicity of a senior Indian Police Service officer allegedly led to a business of Rs.5,000 crores.

IN A.P. the counterfeit stamp paper racket began in 1999 with the city police registering a case against four persons. They were allegedly the followers of a Telugu Desam Party (TDP) Minister, C. Krishna Yadav, but the latter’s name did not figure in the first information report (FIR). Sheik Waheed later said that he was kidnapped by Krishna Yadav’s men for refusing to enter into a partnership deal.

Stamp shortage in the State helped Telgi expand his business rapidly and A.P. turned out to be a goldmine. During 2001-2002, the A.P. government placed an indent for stamps worth Rs.126 crores from the Indian Security Press but was supplied only stamps worth Rs.10.9 crores. For an order of court fee labels for Rs.16 crores, the supply was worth only Rs.2.26 crores.

Seized fake stamps, valued at Rs.170 crores, displayed in Bangalore on October 20.

Surprisingly, the investigations in A.P. fizzled out too soon. There was no progress and the Criminal Investigation Department, which was handling the case, “slept over it”. (And this delay is being probed now.) Despite the issue rocking the State Assembly in November 2002, the government confined its attention to countering the charges by the Opposition and highlighting the need to change the Indian Stamps Act.

Source / Courtesy & Image credits: TheHindu

Year 2003

The Stamp Paper scam whoes investigation is still going now is undoubtedly the largest in the history of the country.

It is really said to note that leading MLA and other people from Andhra Pradesh - particularly Hyderabad and Visakhapatnam are involved in the scam.

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November 20 2005 Mumbai: The special CBI court here has framed charges in two cases against Abdul Karim Telgi, prime accused in multi-crore fake stamp-paper racket.

The judge U D Salvi yesterday (Nov 20, 2005) framed the charges against Telgi and nine others, including two former police officers, in the cases registered at Cuffe Parade and Colaba police stations.

Both the cases involve selling of fake stamp papers. The transactions in these cases amount to over Rs 20 lakh, special public prosecutor Pradip Gharat said.

The charges framed include that of making/selling counterfeit government stamps and forgery and cheating, among others, police said.

Two ex-police officers, K K Parmar and A B Sonvalkar, both of whom were Assistant Inspector of Police, are facing charges of preparing incorrect record and intentional omission and are accused of failing to arrest Telgi when his arrest was due and letting him abscond.

Meanwhile, another trial against Telgi, in which offence was registered at MRM Marg Police Station in the city, is drawing to close, said Gharat.

“Arguments of defence are currently going on and we are hoping for judgement by December-end,” he said.    Source - PTI

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Just when you thought that the people at large had become somewhat indifferent to exposes of corruptions and scams, comes the mother of all scams, leaving all and sundry in a state of utter shock.

The sheer magnitude of the fake stamp paper scam - which reportedly made a staggering Rs 30,000 crore hole in the exchequer - has left even the most resigned and shock-proof observers gasping in stunned disbelief.

The disclosures of Abdul Karim Telgi - the architect of the fake stamp paper racket - while in captivity have set more than a few heads rolling, including top cops and bureaucrats.

With many a political and bureaucratic career now hinging on the confessions of this devious mind, the nation is eagerly watching how the drama plays itself out.  Source: IndiaInfo