Monday, April 12, 2010

Stamp papers for property to go in UP

LUCKNOW: In a major decision of far-reaching consequences, the UP government has decided to do away with the stamp papers presently required for the sale agreement/sale deed and registration of properties. A blueprint on card for replacing this antiquated method is the introduction of franking machine and e-stamping. The new system is expected to be fully operational in the next six to eight months.

UP got a go ahead for this purpose after the Presidential assent to its recently amended UP Stamp and Registration Act, 2009. The Act, passed by both Houses of state legislature, was waiting for President's nod for the last one month. This was sent back to the state on Thursday after due consideration by the Centre and final approval by President Pratibha Patil.

With this, UP will be the third state in the country to have this system after Delhi, Andhra Pradesh and Haryana. It is now being referred to the state's law department for formulation of detailed rules and regulations for implementing the new system.

Drafted around eight years ago, the Bill could not be made a legislation due to shifting priorities of successive governments. What added to the need for a change was the mega stamp paper scam expose and subsequent arrest of its mastermind Abdul Karim Telgi by Mumbai police in 1991. Starting his shady operation from Karnataka, Telgi's size of the scam was estimated to be well over Rs 20,000 crore. By a rough estimate, UP's approximate loss due to fake stamp papers is estimated to be well over Rs 1,000 crore annually.

The new system is expected to bring much-needed relief from this unwarranted loss

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