The Hindu Business Line : Misuse of stamp papers — States told to come up with suitable reforms

The Finance Minister, Mr Jaswant Singh, and the Federation of Karnataka Chambers of Commerce & Industry President, Mr B.S. Arun Kumar, at a seminar on `Latin America Business Opportunity' in Bangalore on Monday. — G.R.N. Somashekar

Bangalore , March 1

IT is for the States to carry forward further reforms to rectify the loopholes in the stamp paper levy rules so as to stem any misuse of the instrument for personal gains. High stamp paper duty has been one of the main reasons for the malpractices resulting in printing fake stamp papers or "fraudulent creation of opportunity for making money", according to the Finance Minister, Mr Jaswant Singh.

He told presspersons here on Monday that the Centre had spelt out steps to reduce the stamp paper duty and simplification of procedures through the interim Budget to plug the misuse of the instrument. However, since some of the areas such as land record and other asset registrations come under the purview of the States, it is for them to come up with suitable reforms to stem the misuse of the instrument for personal gains.

Land transaction attracts as high as 15 per cent in some States and this could be exploited for evasion and malpractices, Mr Singh said without mentioning the Telgi Stamp Scam specifically.

Addressing the Federation of Karnataka Chambers of Commerce and Industry members, he said the Centre would extend its full support to Karnataka in its efforts to leverage Bangalore becoming a "powerhouse" for economic activities through the knowledge industry like information technology. He also allayed fears about the airport project taking off and wondered why it got bogged down despite getting most clearances.

Stating that he was constrained by the Election Commission's code of conduct with the announcement of the dates for the general elections to the Lok Sabha, Mr Singh sought to highlight the steps taken by the Government such as creation of agricultural infrastructure development fund to the tune of Rs 50,000 crore and lower interest rate at nine per cent for farm implements like tractors to enable the agriculture sector to improve its productivity and increase its contribution to the national income.

He also stressed that "India Shining" is not a mere dream or slogan but a reality built on concerted efforts made by the Government that resulted in a growth momentum to expect a 10 per cent GDP in the near future.