Bangalore: Lashing out at the bureaucracy for creating a near "foolproof system of self-protection", Union Finance Minister Jaswant Singh today (Mar 1, 2004) said the Stamp Paper Act, which is in effect in the country is over a century old and continued to be operational since 1899.

"We continue to operate an Act (Stamp Paper Act) of 1899. I must admit that I didn't even know it, until this whole matter of stamp paper (scam) emerged and I was horrified," Singh told industry delegates at the valedictory function of the Latin American Business Opportunity Seminar held in Bangalore by the Federation of Karnataka Chambers of Commerce and Industry (FKCCI).

He said he was baffled that the bureaucracy had advised a near foolproof system of self-protection and it was a simple "no".

Singh said there was a need to change the system and though there were efforts in this regard, it cannot be possible to change in five years.

Declining to comment on the ongoing investigations of the multi-crore scam citing "sub judice", he told reporters the cause of fake stamp papers and fraudulent practices like false declaration was due to the high stamp duty.

Asserting that the Centre has taken steps to reduce duties in this regard, Singh said even State Governments should reduce stamp duty for land, which was as high as 15 per cent, to curb malpractices.