Telgi was quoted as saying that he would disclose the names of "big sharks" in the scandal.
STAMPIT will be wound up now that the cases are with the central agency.
The Karnataka police have arrested M B Ali Iliyas Burhan, believed to the main agent of Abdul Kareem Telgi, the man behind the multi-crore fake stamp paper racket, the Stamp Paper Investigation Team said on Friday.
Addl DGP R Sri Kumar, said in Bangalore that 54 of the 70 accused have been arrested.
He was in news after the then DIG (Prisons) D Roopa recently alleged that Telgi was among several prisoners who received special treatment in the jail.
