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Could you be affected? Find out: The Times of India
New Delhi, Nov 15: If you have bought stamp paper for any transaction in the last 10 years, you should be worried.
New Delhi, Nov 15: If you have bought stamp paper for any transaction in the last 10 years, you should be worried. Your deal or contract could be invalid because it is on a fake stamp paper. Abdul Karim Telgi's network had spread so wide, no state is likely to have escaped being deluged by fake stamps.
In effect, your divorce five years ago could be challenged unless you do something about it now. That of course could have a cascade effect on your present marriage. Do check the affidavit for that too. If you inherited property the papers should be checked now. Or those for an adoption. A contest at this stage could leave you in a spot if the documents had a fake stamp.
These are some of the immediate questions that spring to mind:
Q) What is a stamp paper?
A) The government levies tax in the form of stamps for transactions in instruments like bill of exchange, letter of credit, debenture, policy of insurance, agreement or memorandum of agreement, lease cum sale, sale of property, deposit of deeds and conveyance etc.
Q) When would I usually need to use stamp paper?
A) Stamp papers are used in transactions and contracts like court matters including divorces, wills and inheritance, adoption, employment, property transfer and for issuing affidavits.
Q) How do I know that the stamp paper I have is fake?
A) As of now, that is difficult to tell. There have been cases registered since as far back as 1995 in Mumbai and other places of fake stamp paper. Corporates are now looking closely at all their deals. One way to know could be check for the letters printed in black on the overprinting of all these stamps. If the watermark is genuine in a stamp paper, then one can get the replica of the watermark by placing a genuine stamp paper on a tracing paper and rubbing with a crayon.
Q) What should I do to find out?
A) In view of the stamp scam, it is the duty of the purchaser to exercise due diligence - confirm whether the stamp paper he bought in this period is fake or real. Also, exercise due diligence hereon and carefully check every stamp paper he buys. Every such person who bought stamp paper in the period of the scam must make inquiries now.
Q) If I have a fake stamp, is my transaction still valid?
A) A bonafide purchaser is protected as long as he exercised due diligence - that is bought the stamp paper from a legal vendor and went through the process as prescribed. The deal is not invalid, but the purchaser will have to pay up the stamp duty at the registration office. A bonafide purchaser is one who did not know at the time of purchase that he was buying a fake stamp paper.
Q) Why do I have to pay again if I have already paid once before?
A) The purchaser of a fake stamp paper cannot expect exemption from the government or sue the government. But he can, if he wishes to, sue the vendor who sold him a fake stamp paper. The vendor's name appears at the back of the stamp paper.
Q) Is my divorce, will and inheritance or adoption legal if the stamp paper turns out to be fake?
A) Yes, unless there is a contest now and the prosecution can prove that the person knew that the contract was made on a fake stamp paper. The onus is on that party to prove it. But as explained above if the stamp paper is found to be fake, the stamp duty on it must be paid forthwith to retain its validity.
Q) What happens in cases like the Tata purchase of VSNL?
A) The deal stands, but the companies will have to pay stamp duty again. The government will not bear any loss of revenue on account of fake stamp papers being used.
These are some of the immediate questions that spring to mind:
Q) What is a stamp paper?
A) The government levies tax in the form of stamps for transactions in instruments like bill of exchange, letter of credit, debenture, policy of insurance, agreement or memorandum of agreement, lease cum sale, sale of property, deposit of deeds and conveyance etc.
Q) When would I usually need to use stamp paper?
A) Stamp papers are used in transactions and contracts like court matters including divorces, wills and inheritance, adoption, employment, property transfer and for issuing affidavits.
Q) How do I know that the stamp paper I have is fake?
A) As of now, that is difficult to tell. There have been cases registered since as far back as 1995 in Mumbai and other places of fake stamp paper. Corporates are now looking closely at all their deals. One way to know could be check for the letters printed in black on the overprinting of all these stamps. If the watermark is genuine in a stamp paper, then one can get the replica of the watermark by placing a genuine stamp paper on a tracing paper and rubbing with a crayon.
Q) What should I do to find out?
A) In view of the stamp scam, it is the duty of the purchaser to exercise due diligence - confirm whether the stamp paper he bought in this period is fake or real. Also, exercise due diligence hereon and carefully check every stamp paper he buys. Every such person who bought stamp paper in the period of the scam must make inquiries now.
Q) If I have a fake stamp, is my transaction still valid?
A) A bonafide purchaser is protected as long as he exercised due diligence - that is bought the stamp paper from a legal vendor and went through the process as prescribed. The deal is not invalid, but the purchaser will have to pay up the stamp duty at the registration office. A bonafide purchaser is one who did not know at the time of purchase that he was buying a fake stamp paper.
Q) Why do I have to pay again if I have already paid once before?
A) The purchaser of a fake stamp paper cannot expect exemption from the government or sue the government. But he can, if he wishes to, sue the vendor who sold him a fake stamp paper. The vendor's name appears at the back of the stamp paper.
Q) Is my divorce, will and inheritance or adoption legal if the stamp paper turns out to be fake?
A) Yes, unless there is a contest now and the prosecution can prove that the person knew that the contract was made on a fake stamp paper. The onus is on that party to prove it. But as explained above if the stamp paper is found to be fake, the stamp duty on it must be paid forthwith to retain its validity.
Q) What happens in cases like the Tata purchase of VSNL?
A) The deal stands, but the companies will have to pay stamp duty again. The government will not bear any loss of revenue on account of fake stamp papers being used.