Fake stamp papers already used would be valid: Finance Minister

In an effort to prevent a major financial crisis after unearthing of the Rs 30,000 crore fake stamp paper scam, government on Sunday said th...

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In an effort to prevent a major financial crisis after unearthing of the Rs 30,000 crore fake stamp paper scam, government on Sunday said that all transactions which have already used fake stamps would remain valid.

The assurance was given by the Finance Minister Jaswant Singh when asked about the plight of those who unknowingly had used fake stamp papers in various transactions. Talking to reporters on the sidelines of the India Economic Summit 2003, organised by the World Economic Forum and CII, Singh said “the fake stamp papers already used would not become invalid.”

Asked if a CBI probe has been ordered into the scam, Singh said it would be decided after consultations with Prime Minister Atal Behari Vajpayee and Deputy Prime Minister L.K. Advani. A formal announcement in this regard is expected on Monday, Singh said.

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There are reports that government was considering an ordinance to validate transactions carried out through fake stamp papers between 1998 and 2002.

Singh said the government was considering to move over from stamp to non-stamp paper system. This implied that the finance ministry was working towards a demat system as it was prevalent for securities transactions.