Top companies like Tata Engineering (now Tata Motors), Tata Motors Leasing and Finance Company, Larsen & Toubro Finance, Blowplast and Mahindra & Mahindra, as well as public sector banks like Bank of India and Bank of Baroda have reported losses of over Rs 50 lakh (Rs 5 million) in nine fake stamp paper cases registered with the Mumbai police.
The figure could climb because companies and banks are looking closely at their purchases of adhesive stamps and stamp paper between 1990 and 2002, when, according to the police, Abdul Karim Telgi's racket in fake stamp paper was flourishing.
Although Telgi had a bona fide licence to sell government stamp papers, such vendors are not permitted to sell special adhesive stamps.
These may be sold only at government stamp offices. But Telgi did a roaring business of selling these special adhesive stamps along with regular stamp paper to several corporates.
A senior police official told Business Standard: "Since 1995, 8-9 cases have been registered at various police stations in Mumbai alone. The police have recovered fake stamp paper with a face value of over Rs 50 lakh from these corporates, for whom this is a dead loss as the papers have been confiscated."
Telgi had recruited over 300 well-qualified agents, including MBAs, to sell his fabricated wares to companies, which have a large demand for government paper for daily transactions and agreements, the officer added.
According to details available with Business Standard, Tata Engineering alone bought fake stamps with a face value of Rs 17.49 lakh (Rs 1.749 million), according to a case registered with the Cuffe Parade police station on September 13, 1995.
Bank of India purchased fake stamps of a face value of Rs 22.87 lakh (Rs 2.287 million) from Telgi.
Telco Leasing and Finance Company was found to have bought special adhesive stamps with a face value of Rs 66,100 from Telgi's agents. The case was registered at the Colaba police station.
Blowplast was duped into purchasing fabricated stamps with a face value of Rs 6.54 lakh (Rs 654,000) and Mahindra and Mahindra Rs 2.19 lakh (Rs 219,000).
Bank of Baroda was also found to have made similar purchases, according to complaints with various police stations in Mumbai.
Stumped
- Tata Motors
- Tata Motors Leasing and Finance Company
- Larsen & Toubro Finance
- Blowplast
- Mahindra and Mahindra
- Bank of India
- Bank of Baroda
