The Hindu : Front Page : Stamp scam: police officers, insurance officials held

Online edition of India's National Newspaper
Friday, Jul 02, 2004

Front Page

Front Page

Stamp scam: police officers, insurance officials held

By Our Special Correspondent

NEW DELHI, JULY 1. The Central Bureau of Investigation (CBI) today carried out searches at the residential and official premises of a number of public servants, including senior police officers and executives of public sector insurance companies at Chennai and Hyderabad. It has arrested four persons — a DIG of police, an Assistant Commissioner of Police and two officials of public sector insurance companies.

The searches and arrests were carried out in connection with the investigations into 48 cases of fake stamps, registered by the CBI on transfer from various States in pursuance to the orders of the Supreme Court.

In Chennai, A.P. Mohamad Ali, DIG, S. Sankar, ACP, and administrative officer of the Life Insurance Corporation, Ramaswami Sadhu, were arrested. In Hyderabad, former administrative officer of the National Insurance Company, A. Venkateswar Rao, was held.

In Chennai, fake stamps were being sold by a licensed stamp vendor through his firm, Marina Services, operating from Anna Nagar. Both the cases were initially registered by the Crime Branch CID, Chennai, in 2002 but the probe was not pursued along proper lines, CBI sources claimed here.

Although the Crime Branch CID, Chennai, had arrested the stamp vendor in April 2002, the police officers could recover only fake stamps worth about Rs. 5,000, whereas the authorities in Karnataka recovered fake stamps to the extent of Rs. 170 crores in October 2002 from the same person in Chennai. As a result of the alleged inaction on the part of the local police, the vendor managed to come out on bail and continued the illegal operations, as a part of the organised network of the prime accused, Abdul Karim Telgi, according to a CBI spokesperson.

To bring out the nexus between the suspect police officials and the crime syndicate of Telgi, searches were conducted today at the residential and official premises of the DIG, Crime Branch, CID, Chennai and the ACP, Anti-Dowry Cell, Chennai, who was the Investigating Officer of the cases registered by the Chennai police initially. The CBI said incriminating documents had been seized. Both the DIG and the ACP have been arrested and are being subjected to custodial interrogation.

The investigation has revealed the involvement of a number of officials of public sector insurance companies, who reportedly had a close association with Telgi and his associates. Besides, they had allegedly connived with the gang and actively facilitated the illegal sale of fake stamps.

Searches were conducted on the premises of Mr. Sadhu, LIC officer, in Chennai. He allegedly facilitated the sale of fake insurance stamps, running into crores of rupees by Telgi and his associates to various offices of the LIC in Chennai and other places in Tamil Nadu between 1998 and 2002. The companies of Telgi, established for this purpose at Chennai, included M/s Marina Services, Sahara Services, Paramount Services and Bharat Enterprises. Other outlets included Rockfo Services at Tiruchi, Meenakshi Services at Madurai and Blue Mount Services at Coimbatore. Mr. Sadhu has been put under arrest.

At Hyderabad, searches were conducted at the residence as well as the earlier office of the then administrative officer, National Insurance Company Ltd., Hyderabad, A. Venkateswar Rao, in another fake stamp case.

While posted as the administrative officer in the Hyderabad Regional Office of National Insurance Company (NIC), he had written a letter addressed to all the Divisional Offices of the NCI, recommending the name of M/s SAM's Services for procurement of insurance and revenue stamps. A copy of this letter was given only to the representatives of this firm but the letter was never sent officially to any Divisional Office.

Copies of this letter were presented by the representatives of M/s SAM's Services, whenever they approached the office of NIC for obtaining purchase orders for supply of insurance/revenue stamps.

It was established earlier during the investigation that M/s SAM's Services was being operated by the close associates of Telgi and the stamps supplied by this company were fake. Thus, the then administrative officer of NIC had allegedly aided, abetted and facilitated the illegal acts of accused persons involved in the sale of fake stamps in Andhra Pradesh. During the searches at the premises of the NIC official, incriminating documents, including the visiting cards of the representatives of M/s SAM's Services were seized. He has been also been arrested.

Printer friendly page
Send this article to Friends by E-Mail

Front Page

News Update

Stories in this Section

J'Accuse...! The real criminal is Bush, says Saddam

Shocked by realities, Manmohan announces aid

Stamp scam: police officers, insurance officials held

Exchange of fire

Life term for policemen

More powers for RPF

Notice served on MSEB in DPC row

Harsud: most people shifted

Cassini begins orbit