The Hindu : Ministry examining legal status of `tainted' documents

Online edition of India's National Newspaper
Wednesday, Nov 26, 2003

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National

Ministry examining legal status of `tainted' documents

By Our Special Correspondent

NEW DELHI NOV. 25. A clarification by the Union Finance Minister, Jaswant Singh, on Sunday notwithstanding, the Finance Ministry today said that it was examining the legal status of the documents prepared or registered on fake stamp papers by the unsuspecting public.

The Ministry also said that following the directions of the Allahabad High Court on fake stamp papers, the CBI had been asked to register a case from the date of receipt of the directions. The High Court had directed that the Finance Ministry ask the CBI to "investigate countrywide, the entire episode of mass circulation of fake revenue stamps." Consequently, the CBI was at present investigating seven cases relating to the stamp paper fraud.

Providing the background, the Finance Ministry said that it had two presses — the India Security Press (ISP), Nashik and the Security Printing Press, Hyderabad — which print the requirement of non-judicial stamp paper (NJSP) and stamps (revenue, court fee, insurance, postal etc.) of the country. The NJSPs range from denomination of Re. 1 to Rs. 25,000 while stamps were generally of lower denomination only.

In view of the large seizure of counterfeit NJSPs, the Centre had constituted a Working Group on NJSP in February 2001 with representatives from the Ministry of Finance, printing presses and specialists in the paper field. The Working Group submitted its report in December 2002, which was discussed with different State representatives and the security agencies.Based on the Working Group recommendations and the suggestions received after consultations with the State representatives and security agencies, a set of additional security features have been approved for introduction in the NJSPs.

The Ministry expects that with the introduction of these security features, it would become very difficult to counterfeit NJSP.

On the basis of intelligence inputs and investigations carried out by various security agencies, three officers of ISP, Nashik had been placed under suspension and disciplinary action against them and other serving as well as retired officers was under way. Certain officers, who were holding sensitive posts, had been transferred since there was no material to prove their involvement.

The States have also been requested to conduct verification of the stocks of stamp papers with authorised vendors to prevent entry of fake stamp paper into the system through them. Besides, banking and insurance companies have been asked to take preventive and remedial measures to deal with the problem of fake stamp papers.

Industry associations like FICCI, CII, etc. have also been alerted.

Income Tax authorities have attached about 40 properties under the Income Tax Act, the Ministry said.

While some States have already introduced alternatives to stamp paper, all the States have been asked to examine the possibility of technologically feasible alternatives to stamp papers.

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