Telgi Scam
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This document provides an overview of the Telgi scam, one of the largest financial scams in India's history. It describes Abdul Karim Telgi's background and how he began counterfeiting stamp papers and created a large network across multiple states. Key people involved in the scam are identified, including politicians and police officials who helped Telgi. The document also provides details on the methods used, scale of the scam estimated in billions of rupees, impact on the public, Telgi's death, and how his actions violated business ethics.
Telgi Scam
- 4. CONTENTS What are Indian Stamp papers ? Their types & uses Introduction Key Players of Telgi Scam Whistle Blowers Proofs Methods followed by Telgi Numerical figures Impact of Telgi scam Telgi’s death Conclusion Violation of Ethics Harmila Chahat Diksha Prachee Aishwarya Chahat
- 7. Different Types of stamp papers The different denominations of stamp papers are Rs.10, 20, 50,100, 500, 1000, 5000, 10000, 15000, 20,000, 25,000. They are 14 Categories of Stamps papers , few of which are as follows: Non-Judicial Stamp Papers Judicial Stamp Papers Court Fee Papers Court Copy Papers Court Fee Label Share Transfer Stamps Insurance Stamps Spl.Adhesive Stamps Foreign Bills Hundi I.A.L.F. Revenue Stamps Notary Stamps Brokers Note
- 8. USES OF STAMP PAPERS Stamped paper has been widely used around the world to collect taxes on documents requiring stamping, such as leases, agreements, receipts, court documents and many others. The papers are bought blank apart from the pre-printed stamp and are available from stationers, lawyers offices, post offices and courts according to local regulations. The parties to the matter then write their legal business on the paper and lodge it with the court or other interested party. This is an efficient way of collecting taxes and stamping documents without the need to submit them to a separate government stamp office.
- 9. INTRODUCTION TO TELGI SCAM One of the biggest scams India has ever faced. Telgi’s network spread across 13 states involving 176 offices,1000 employees and 123 bank accounts in 74 cities. Movie known as ‘MUDRANK’ was made in 2008 based on Telgi scam.
- 10. Early life Born- 1961 Mother – Housewife Father – Employee of Indian Railways. Passed away when Telgi was young. Education- Telgi paid for his own education at Sarvodaya Vidyalaya, an English medium school, by selling fruit and vegetables on trains. Graduation(B.Com)- Belgaum college He moved to Saudi Arabia. Came to Mumbai after seven years (1980s) He began a career in counterfeiting, originally focusing on fake passports. Worked as a travel agent. Later he worked in a Colaba guest house. Abdul Karim Telgi
- 11. Key Players Two MLAs- Anil Gote (MLA Dhule,Maharashtra) and Krishna Yadav(Himayat Nagar,Andhra Pradesh) Former A.P.minister C.B.K.Yadav Former Mumbai Police Commissioner R.S.Sharma Former Joint Commissioner of Police, Crime branch,Mumbai,S.S.Vaghal Former Deputy Commissioner (Detection) of Mumbai Police,Pradip Sawant. Kishore patil(suspended IPS officer)
- 12. Whistle Blowers 1. Shamshuddin Miyalal Mushrif, Deputy Inspector General of Police,Mumbai Revealed the alleged involvement of top police officials. During his tenure as Pune Additional Commissioner of Police, Mushrif had questioned the conduct of his boss, then Pune Police Commissioner Ranjit Singh Sharma, and another official, Pune Additional Commissioner of Police MC Mulani, in investigating the case. Was forced to resign.
- 13. Whistle Blowers 2. Jayant M Tinaikar, Telgi’s childhood mate. Reported different frauds to police Even wrote a letter to President of India Got death threats Became bank corrupt Was very courageous
- 18. Method followed by Telgi His agents would first talk to the henchmen of politicians. As the next step he would build a chain of ‘reliable contacts’ through the first contact and deals were struck in his presence. Telgi would then offer them a State wide contract. Telgi floated several companies, including a film distribution agency to facilitate his activity. He recruited unemployed youth to sell counterfeit stamps at 2 per cent discount. Chit companies, along with courts and real estate agencies, were his prime targets.
- 19. Numerical figures The Special Investigating Team (SIT) of the Maharashtra Police put the total value of the scam at Rs.21,28,47,07,824. Later this was revised to Rs.32,000 crores by the Union Home Secretary. Seized fake stamps, valued at Rs.170 crores, displayed in Bangalore.
- 20. Numerical figures EX-Finance Minister Jaswant Singh was Speaking in the Lok Sabha on a calling attention motion on the stamp paper scam, the minister said the agencies had registered 74 cases in this connection, with 15 against chief accused Abdul Karim Telgi. Special Investigation Team (SIT) first taken the case during 1995-2003 and then hands over stamp scam cases to Central Bureau of Investigation (CBI) on April 13, 2004
- 21. COURT’S VERDICT On 17 January 2006, Telgi and several associates were sentenced to ten years rigorous imprisonment. On June 28, 2007 Telgi was sentenced to rigorous imprisonment for 13 years. Fined a whopping Rs. 202 crore on various counts in one of the main cases of the scandal. Honorable Judge Chitra Bedi sentenced 42 other accused in the case, who too had pleaded guilty, to rigorous imprisonment for up to six years and imposed fines on them.
- 22. Impact of Telgi Scam Public sector bank became more responsible Government verified the stock of Stamp Papers with Authorized vendors. Bankmanagers ensured that further transactions are proper. Public/People suffered the most as legal cases were delayed due to declaration of stamp papers as fake papers.
- 23. Telgi’s death Abdul Karim Telgi, the prime accused in the multi-crore fake stamp paper scam, died in Indore, Madhya Pradesh in 2012 due to multiple health problems , viz HIV AIDS, Diabetes, Hypertension, Weak bones, etc.
- 24. Arrested in 1991 by Mumbai police for cheating. In 1994, Telgi acquires a stamp paper license, sets up office at Mint Road. Telgi's fakes carried the same numbers and reached the Mumbai market. Conclusion
- 25. The fakes were then distributed to authorised vendors and sold along with genuine ones. He appointed 300 people, including MBAs as agents who sold the fakes to bulk purchasers. Several cases against him in the '90s. Finally arrested in August 2001. Conclusion
- 26. VIOLATED ETHICAL COMMANDMENTS 1st Realize that our own actions or failures to act will determine our future. People alone are in charge of this world. No hypothetical or imagined powers, including devils and gods, can share responsibility with us. 5th Expand our knowledge and develop our understanding of all things. To broaden our understanding of the world, we must look, listen, touch, smell, feel, and taste more. We must learn about the environment, war, and peace, and we must encourage others to learn about similar things so that we can cooperate to build a better future. Being well rounded in these regards means we will be less likely to operate on ignorance more likely to accept alternative outlooks and lifestyles. By continually expanding our knowledge of all things, we can do our part to foster a world of understanding and cooperation rather than one of opposition and war.
- 27. Violation of Ten commandments of business ethics Be honest, truthful, candid(open) and sincere. Have integrity: Strive to be scrupulous(principled). Keep your word and abide by the spirit as well as the letter of the law. Maintain fidelity(faithfulness): Be faithful and never disclose confidential information. Always be fair: Demonstrate a commitment to justice, with equal treatment of all. Care for others: Be kind. Respect others in every way. Be a responsible citizen. Obey just laws and protest unjust ones. Strictly pursue excellence. Always be accountable: good leaders lead by example.