Firoz.T.Totanawala The Bangalore Metro Reporter THE SBM STAMP PAPER SCAM- 1 THE SHOCKING WHITE COLLAR SCAM BY BANK & REGISTRATION DEPARTMENT!

By Firoz.T.Totanawala

The Bangalore Metro Reporter

By Firoz.T.Totanawala

The Bangalore Metro Reporter

THE SBM STAMP PAPER SCAM-1 

THE SHOCKING WHITE COLLAR SCAM BY BANK & REGISTRATION DEPARTMENT!

Most of us are shocked and frustrated over the Kareem Telgi Stamp Paper scam and consider it a black spot on the Registration Department. But, you will be more astonished over this SBM Stamp paper scam which we bring to you in series and details. We call it a white collar scam because; this has been done in the broad day-light under the very noses of the ‘babus’ with the connivance of the relevant Banks. This would bow the heads in shame for the failure of introducing an effective and a fool-proof alternative system of revenue collection despite the Government having several efficient administrative officers in its corridor. Indeed, the Kareem Telgi Scam appears quite small compared to the scam our elected authorities have operated. There are multiple blunders accrued in this scam and most importantly it is by our own authorized officials, who are liable for safeguarding the public treasury. Here it is unfolded in detail for you. 

With the exposure of Kareem Telgi stamp paper scam, the Government decided to do away with the Stamp Papers with effect from 01/04/2003. While this was a prelude to abolition of the Stamp Papers legally, and the law legislated by the state waited for the Presidential assent. As an immediate alternative, the State Government made arrangements with the State Bank of Mysore (SBM) for payment of Stamp Duty through its branches and its subsidiaries in the state. It issued notifications that henceforth State Bank of Mysore is authorized to collect Stamp Duty on behalf of the State Government. But what happened then, is astonishing. 

The Beginning- 

The Kareem Telgi fake Stamp Paper scam was out and the citizens watched the manipulation of public money in horror. The Karnataka State Government panicked and issued notifications saying that it has banned the sale of Stamp Paper from 01/04/2003. Instead, it implemented various temporary alternatives to select the best feasible one as a solution. 

 THE 1st BLUNDER- NO WRITTEN AGREEMENT 

 As a measure, it authorized and informed the State Bank of Mysore (SBM) to collect the Stamp duty from 01/05/2003 on behalf of the Government. It sent a proposal to bank to issue pre-printed D/Ds of various denominations from Rs.5/= up to Rs. 10,00,000/-. Instead, the Bank on this proposal letter Dt:26-03-2003, started printing of Stamp papers in various denominations. However, extremely shocking is the fact that there was no written agreement for printing of denomination wise Stamp papers.(SBM calls it as document sheets) 

The SBM from 01/04/2003 itself had started printing its own denomination wise stamp papers through private printing presses and named it as Document Sheets. And the State Government never entered into an agreement with the Bank. (Note by District Registrar dated 21/02/2004, Point 2-b). 

According to point number 2-b in the Note issued by the District Registrar on date 21/02/2004, it says “ It is further confounding that the Department has no written agreement with any Bank and it is suggested that we should impose our authority on SBM under a written agreement”. See document-1 

An RTI reply by the IGR & CS dated 16/01/2007 in response to enquiring about the Agreement/ MoU with the Bank also states that ‘No such MoU has been executed’. See document-2 

This clearly states that the Government has no written agreement with the Bank with regard to authorizing the SBM to print denomination wise Stamp papers on behalf of the State Government. 

On the contrary, the SBM quotes letter No: STP: 99:02-03 dated 26.03.2003 as an appropriate Government authorization for printing and selling of the Stamp Papers/Document Sheets as often as possible in its reply to the RTI inquiry. But the truth is that the above quoted letter is a mere proposal given to the SBM by the IGR & CS for the issue of pre-printed receipts and not at all for printing their own stamp papers/ document sheets and selling them. The same is even mentioned in the letter itself. It is not an authorization at all. This point has been established, clarified and endorsed from time to time by the supervisory bodies such as the IGR & CS, the Revenue Secretary, the District Registrar, the Lokayukta, etc., See document-3 

Absence of the written Permission/Order/Authorization 

 1. The District Registrar (DUS) in his letter dated 21.02.2004 had written to the IGR & CS expressing his apprehension about the issue of printing and selling of stamp papers by the SBM and calling it as ‘a blatant illegal activity’, 

 2. In reply to an RTI inquiry, the IGR & CS in his letter No: RTI/Aud/13.06.07 dated 16.01.2007 clearly said that no such MoU has been executed for printing and sale of SBM stamp papers and 

3. Finally, the “The Chief Public Information Officer (CPIO) of SBM also clarified that the work relating to sale of printing of document sheets based on the aforesaid letter of the IGR & CS vide their No: STP:99:02-03 dated 26.03.2003, which is the Government Order/Permission. And there is no other order”. 

 All these above clearly show that there was No written Permission/ Authorization/Order at all. Yet, the SBM had been printing and selling the stamp papers since 2003, which could be surmised as a blatant illegal activity, which could attract severe legal action under the Stamp Act of India. To be continued…….