PRESS NOTE

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A number of reports regarding the circulation of fake stamp papers and the connivance of officials of India Security Press, Nashik have appeared in the media in the recent past.

In pursuance of the directions of the Hon’ble High Court at Allahabad, the Ministry of Finance has requested the CBI to register a case from the date of receipt of the above mentioned directions of Hon’ble High Court and "Investigate, country-wide, the entire episode of mass circulation of fake Revenue Stamps"

The CBI is at present investigating seven cases related to the Stamp Paper fraud.

The Government of India has two presses namely India Security Press (ISP), Nashik and Security Printing Press (SPP), Hyderabad which print the requirements of Non-Judicial Paper (NJSP) and Stamps (revenue, court fee, insurance, postal etc.) of the country.

The NJSP ranges from denomination of Re. 1 to Rs. 25,000/- while stamps are in general of lower denomination only.

In view of large seizure of counterfeit NJSP, Government of India had constituted a Working Group on NJSP in February 2001 with representatives from 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 NJSP. It is expected 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 have been placed under suspension and disciplinary action against them and other serving as well as retired officers is under way. Certain officers, who were holding sensitive posts but there was no material to prove their involvement, have been transferred to other units.

Apart from introduction of safer security features, the security environment at ISP, Nashik has also been further strengthened.

The States have been requested to conduct verification of the stocks of Stamp papers of the authorised vendors to prevent entry of fake stamp paper through the authorised vendors.

Keeping in view the intelligence inputs, the banking and insurance sector was requested to take preventive and remedial measures to deal with the problem of fake stamp papers. The industry associations (FICCI, CII) had also been kept alerted regarding this.

Income Tax authorities have attached about 40 properties under the income Tax Act. The legal status of the documents registered/prepared on fake stamp paper by unsuspecting public is being examined.

While some States have already introduced alternatives to Stamp Paper, all States have been requested to examine the possibility of technologically feasible alternatives to Stamp Papers.

 

Ministry of Finance (Deptt. of Economic Affairs)

New Delhi, Agrahayana 4, 1925/November 25, 2003