HC to state: Respond to PIL over shortage of stamp papers in Mumbai

The Bombay high court (HC) on Friday directed the state government to respond to a Public Interest Litigation (PIL), raising concern over shortage of non-judicial stamp papers in Mumbai, primarily due to lesser number of vendors

Mumbai: The Bombay high court (HC) on Friday directed the state government to respond to a Public Interest Litigation (PIL), raising concern over shortage of non-judicial stamp papers in Mumbai, primarily due to lesser number of vendors. “The issue of dearth of stamp vendors raised by the petitioner, prima facie, is serious and requires to be examined further,” said the division bench of chief justice Dipankar Datta and justice Makarand Karnik, directing the government to file in two weeks it’s reply to the PIL filed by advocate and activist Swapnil Kadam.

The Bombay high court (HC) on Friday directed the state government to respond to a Public Interest Litigation (PIL), raising concern over shortage of non-judicial stamp papers in Mumbai, primarily due to lesser number of vendors (Stock pic)

Kadam has moved HC through advocate Uday Warunjikar, highlighting that while there are 3,556 licensed stamp paper vendors across Maharashtra, the city has only 13, resulting in acute shortage of stamp papers across Mumbai. In his PIL, Kadam has stated that in the year 1999, the city had more than 250 licensed stamp vendors, but the number drastically went down after many of them surrendered their licenses and stopped vending stamp papers, as they were either prosecuted or apprehended prosecution for selling counterfeit stamps in the fake stamp paper scam involving Abdul Karim Laadsab Telgi.

In the backdrop of the scam, in March 2004, the government took a policy decision to grant stamp vending licenses only to institutions like banks, post offices. The PIL, however, points out that while hardly any license was issued to any such institution in Mumbai, the Additional Controller of Stamps in Mumbai closed down 8 government-run stamp selling counters, resultantly today the city has only 13 licensed vendors - 12 individuals and a bank run by Mantralaya employees.

Kadam has alleged that the union of the 12 licensed vendors have “influenced” the office of the Collector of Stamps and brought about the situation in order to keep the income from 3℅ commission on sale of stamped papers and adhesive stamps, especially the stamps of denomination of ₹100 and ₹500, which are frequently required and used by the general public.

According to the PIL, the sale of these two stamped papers have gone to the extent of ₹100 crore annually, but in 2020 - being a Covid pandemic year, the sale was limited to ₹65.68 crore. Alleging that the sale of stamp papers in Mumbai has been deliberately kept in limited hands, the petitioner lawyer has also stressed upon the need for an independent inquiry in the entire episode.

The PIL also highlighted that under the high court’s directives of December 2014, 13 stamp papers vends were started by advocates associations at various courts in Mumbai, but those counters have also been indirectly compelled to close down since 2020.