PE Final

TELGI STAMP PAPER SCAM PRESENTED BY: 190630107083- ADITI NAIR 190630107089- ARPIT PANCHAL 190630107109- DHRUVIL PATEL 190630107110- DISHA PATEL 190630107128- KRISH PATEL 190630107140- NEEL PATEL

TELGI STAMP PAPER SCAM

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Introduction

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Early life of Telgi

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Methods followed by Telgi

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Numerical figures Impact of Telgi scam Telgi death

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Key players

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The operation involvement

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Conclusion

INTRODUCTION 

Abdul karim telgi-the lead role of the fake stamp paper scam

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The Telgi stamp scam can be dubbed as the mother of all scams.

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He struck gold when he plunged into printing and selling fake stamps. His operations lasted for nearly a decade.

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He started by selling articles on the Belgaum platform and trains to make out a living and educated himself and by doing a petty job.

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Scam exposed links with various politician and top officials One of the biggest scam India has ever faced.

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Telgi's network spread across 13 states involving 176 offices,1000 employees and 123 bank accounts in 74 cities.

DIFFERENT TYPES OF STAMP PAPERS 

The different denominations of stamp papers are Rs.10, 20, 50,100, 500, 1000, 5000, 10000, 15000, 20,000, 25,000.

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They are 11 Categories of Stamps papers, few of which are as follows:

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Stamp paper

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Judicial court fee stamps

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Non-judicial stamps

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Revenue stamps

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Special adhesive stamps

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Notorial stamps

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Foreign bills

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Brokers notes,

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Insurance policies

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Share transfer certificates

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Insurance agency stamps

USES OF STAMP PAPERS 

Stamped paper has been widely used around the world to collect taxes on documents requiring stamping, such as leases, agreements, receipts, court documents and many others.

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The papers are bought blank apart from the pre-printed stamp and are available from stationers, lawyers offices, post offices and courts according to local regulations. *

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The parties to the matter then write their legal business on the paper and lodge it with the court or other interested party. *

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This is an efficient way of collecting taxes and stamping documents without the need to submit them to a separate government stamp office.

EARLY LIFE 

Born- 1961

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Mother-Housewife

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Father-Employee of Indian Railways. Passed away when Telgi was young.

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Education- Telgi paid for his own education at Sarvodaya Vidyalaya, an English medium school, by selling fruit and vegetables trains

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Graduation(B.Com)- Belgaum college

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He moved to Saudi Arabia. Came to Mumbai after seven years (1980s)

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He began a career in counterfeiting, originally focusing on fake passports.

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Worked as a travel agent.

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Later he worked in a Colaba guest house.

WHAT WAS THE SCAM 

Telgi and his team created counterfeits of stamp papers, judicial court fee stamps, revenue stamps, special adhesive stamps, foreign bills, brokers notes, insurance policies, share transfer certificates, insurance agency stamps, and other legal documents.

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Investigations revealed that he bribed the officials of the Indian Security Press to obtain government printing and perforating machines, which were used to produce the fake documents.

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They also created an artificial scarcity of official documents with the help of some officers from the Indian Security Press.

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Documents worth several crores were dispatched to addresses that didn’t exist, in order to create this scarcity

METHOD FOLLOWED BY TELGI

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His agents would first talk to the henchmen of politicians

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As the next step he would build a chain of 'reliable contacts' through the first contact and deals were struck in his presence.

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Telgi would then offer them a State wide contract.

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Telgi floated several companies, including a film distribution agency to facilitate his activity.

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He recruited unemployed youth to sell counterfeit stamps at 2 per cent discount. Chit companies, along with courts and real estate agencies, were his prime targets.

NUMERICAL FIGURES 

The Special Investigating Team (SIT) of the Maharashtra Police put the total value of the scam at Rs.21,28,47,07,824.

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Later this was revised to Rs.32,000 crores by the Union Home Secretary. Seized fake stamps, valued at Rs.170 crores, displayed in Bangalore.

NUMERICAL FIGURES (CONTINUE)

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EX-Finance was Speaking in the Lok Sabha on a calling attention motion on the stamp paper scam, the minister said the agencies had registered 74 cases in this connection, with 15 against chief accused Abdul Karim Telgi. Minister Jaswant Singh

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Special Investigation Team (SIT) first taken the case during 1995-2003 and then hands over stamp scam cases to Central Bureau of Investigation (CBI) on April 13, 2004

NUMERICAL FIGURES (CONTINUE)

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On 17 January 2006, Telgi and several associates were sentenced to ten years rigorous imprisonment.

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On June 28, 2007 Telgi was sentenced to rigorous imprisonment for 13 years.

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Fined a whopping Rs. 202 crore on various counts in one of the main cases of the scandal.

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Honorable Judge Chitra Bedi sentenced 42 other accused in the case, who too had pleaded guilty, to rigorous imprisonment for up to six years and imposed fines on them.

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Mudrank film released on telgi scam on 2008.

KEY PLAYERS

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Two MLAS- Anil Gote (MLA Dhule,Maharashtra) and Krishna Yadav(Himayat Nagar,AndhraPradesh)

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Former A.P.minister C.B.K.Yadav

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Former Mumbai Police Commissioner R.S.Sharma

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Former Joint Commissioner of Police, Crime branch,Mumbai,S.S.Vaghal

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Former Deputy Commissioner (Detection) of Mumbai Police,Pradip Sawant.

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Kishore patil(suspended IPS officer)

IMPACT OF TELGI SCAM 

According to a Frontline report, lakhs of people who unknowingly bought his stamp paper would have been left with invalid documents had the Reserve Bank of India not stepped in and declared that they would still hold good legally.

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According to Hindustan Times, had said that the scam caused heavy damage to the state exchequer and ruined the lives of several people by involving them in the scam.

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Public sector bank became more responsible

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Government verified the stock of Stamp Papers with Authorized vendors.

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Bank managers ensures that further transactions are proper.

TELGI'S DEATH 

Abdul Karim Telgi, the prime accused in the multi-crore fake stamp paper scam, died in Indore, Madhya Pradesh.

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Telgi was suffering from meningitis and died on 23 October 2017 at Victoria Hospital, Bengaluru. He was suffering from diabetes and hypertension for over 20 years, besides other ailments.

CONCLUSION

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Arrested in 1991 by Mumbai police for cheating.

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In 1994, Telgi acquire a stamp paper license, sets up office at Mint Road.

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Telgi's carried the some fake numbers and reached the mumbai market.

CONCLUSION (CONTINUE)

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The fakes were then distributed to authorised vendors and sold along with genuine ones.

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He appointed 300 people, including MBAS as agents who sold the fakes to bulk purchasers.

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Several cases against him in the ‘90s and finally arrested in August 2001.

CONCLUSION (CONTINUE)

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The scam estimated to be more than Rs 43,000 crore.

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Business spanning 74 centers in 13 states over 10 years.

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Quality of the fake stamps and stamp papers was as good as that of originals.

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He was also fined ₹10 billion (US$140 million). The Income Tax Department requested that Telgi's property to recover to pay the fine. He had been in jail for 13 years

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