Mumbai: In a major development in the multi-crore fake stamp paper scam, the Special Investigation Team (SIT) today (Dec 22, 2003) arrested in Pune a key associate of prime accused in the fake stamps scam, Abdul Karim Telgi, SIT sources said.

Vijay Desai, who allegedly acted as marketing manager of Telgi's syndicate, was arrested by SIT and grilled in Pune.

Vijay was absconding since one and half years after the Pune Police exposed the fake stamps and stamp paper racket, sources said.

From Vijay, the SIT expects to get details of financial dealings of Telgi, sources said.

According to the sources, Vijay chalked out retailing strategy for insurance, revenue and share transfer stamps business of Abdul Karim Telgi and helped the scamster spread his business in financial centres like Ahmedabad, Delhi and adjoining areas.

Vijay helped Telgi conduct surveys of major cities like Mumbai, Surat, Ahmedabad, Jaipur, Indore and Delhi to assess "business potential" and prepare retail marketing strategies for these places, sources said.

"Just before the fake stamps scam was exposed by Pune Police in August last year, Telgi was so impressed by the market potential of Ahmedabad that he had chalked out a massive plan to make Ahmedabad his second major business centre after Mumbai and had even expressed desire to shift the production centre there," an SIT official said.