State government to do away with the physical form of stamp papers in denominations of ₹100 and ₹ 500. This would, they think, help them in preventing black marketing and overcharging and will save the paper too. The franking system will be alternative to stamp papers.
According to a government official, this will help the government move towards a paperless regime and save expenditure on manpower, security, and prevent the possibility of fake papers.
The revenue department has proposed to make franking mandatory instead of the stamp paper regime for all legal documents. The government has already made it mandatory to pay stamp duty over ₹10,000 by franking, while the duty below it is allowed to be paid by using stamp paper.
The use of stamp papers was reduced in the state after the Telgi scam was unearthed in early 2000.
The stamp papers of ₹100 and ₹500 are used for affidavits filed for government schemes, including Mhada houses, crop insurance, birth/death certificates.
“In some cases, the stamp papers are sold through black marketing, while cases of duplication of the papers cannot be denied. The printing of paper is done on specific papers, there is security and special storage system created for it, security for its transportation and the cost of transportation involves huge expenditure and manpower,” said an official from the revenue department. “The government spends over ₹50 crore on the commission paid to the vendors or agents. By doing away with the physical papers, we wish to go paperless and save money,”
The proposal is still in the initial stage and will need amendment to the Maharashtra Stamp Act. States like Gujarat have already put an end to physical stamp papers. The decision by the Gujarat government was challenged in court, but the verdict was in favour of the government.
“We, too, expect the decision to face resistance from the stamp paper vendors, but it is the need of the hour. We have a robust mechanism right from the village to facilitate the online payment of the stamp duty through franking services,” said another revenue department official.
Ashok Kadam, president, Stamp Venders Association, said, “We are not against the transition, but the question here is whether the government has the mechanism to implement it. The people in rural parts of the state do not prefer the online franking system owing to lack of facilities. Gujarat and Karnataka, after launching it four years ago, have given the responsibility of franking to private venders. Here too the government should involve us while shifting to franking.”
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