Firoz.T.Totanawala The Bangalore Metro Reporter THE BAAP OF TELGI SCAM (THE STAMP PAPER SCAM IS BACK AGAIN)

BY FIROZ.T.TOTANAWALA

 

THE BANGALORE METRO REPORTER 

                  THE BAAP OF TELGI SCAM

(THE STAMP PAPER SCAM IS BACK AGAIN)

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 for payment of duty through its branches and its subsidiaries in the state. But what happened then, is astonishing. Perhaps more serious then the impact of Kareem Telgi Scam itself.

The Beginning-

The Kareem Telgi fake Stamp Paper scam was out as 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 and in stead, authorized State Bank of Mysore to collect Stamp Duty on behalf of the State Government.

The Kareem Telgi Scam appears quite small compared to the scam our elected authorities have conducted. There are multiple blunders in accrued in this scam which makes it indeed more powerful, more corrupt, more deadly, and more manipulative than the Kareem Telgi Scam. And most importantly it is by our own authorized officials, who are liable for safeguarding the public treasury.

THE 1st BLUNDER- NO WRITTEN AGREEMENT 

The State Government had banned the use of the Stamp Papers from 01/04/2003 and implemented various temporary alternatives to select the best feasible one as a solution. It authorized the SBM to collect the Stamp duty from 01/05/2003; however, the SBM had already started collecting Stamp Duty from 01/04/2003. Besides, most shocking is the fact that the State Government never entered into an agreement with the Bank but the permission was all on verbal discussions. 

According to the Note issued by the District Registrar on date 21/02/2004, it is clearly mentioned in point Number 2-b, that “ 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”.

In addition, an RTI issued by the IGR & CS on date 16/01/2007 enquiring about the Agreement/ MoU with the Bank also states that No such MoU has been executed.

This clearly states that the Government has no written agreement with the Bank with regard to authorizing the SBM to collect Stamp duty on behalf of the State Government.

Again, we filed an RTI with SBM on 20th April 2009, asking for the Government Order Copies permitting your Bank (SBM) to print & sell Stamp Papers in Various denominations. In reply, the SBM gave us a copy of a letter No STP:99:02-03 DATED 26/03/2003 issued by IGR & CS to their Bank. However, when we verified the letter we realized that it is only a mere proposal and not an Order. It is also clearly mentioned in the proposal letter that the Government Order will be issued detailing the mechanism of operation.  

Further, another RTI issued by IGR & CS says that the Government has finally issued an order No. 255 dated 07/05/2007 to SBM for printing and selling the Document Sheets. However, the said order is not an order but merely a letter stating that the Government will pay 1% commission to SBM for the Stamp Duty collected. Clearly, there is no mention of any agreement/MoU entered between the Government and the SBM. 

Most importantly, even if we consider it as a Government order to Print and Sale the Stamp Papers/ Document Sheets, then it is issued on 07/05/2007. Then what about the Stamp Duty paid in Crores of rupees for a span of over four years? What were the officials doing until now? Legally, entire dealings and collections without any authorization from Government can be considered Null and Void.

When Kareem Telgi was caught, the Government banned the Stamp papers. But now, when the Government and its Subsidiaries are caught in this scam, who will restore justice.