Bangalore: Central Bureau of Investigation (CBI) today (May 27, 2004) arrested three persons in Bangalore in connection with the seizure of Rs 1.5 crore fake non-judicial stamp papers and Government stamps, following revelations by scamster Abdul Karim Telgi that printing of the fake stamps still continued.

The three arrested - K Raghvendra Prasad, M Ramchandra and Munna Reddy - were detained last night following raids by the CBI. However, after failing to answer the questions properly, they were placed under arrest by the CBI, an agency spokesman said.

The spokesman alleged that the three persons were involved in printing of fake non-judicial stamp papers in Bangalore and Bellary.

The CBI had carried out searches in Bellary and Bangalore and recovered 14 films, which were being used in printing these stamp papers, the spokesman said.

Besides this seizure, the CBI also recovered trace papers containing the emblems of Government of India and Government of Andhra Pradesh along with rolling machine for water marking of stamp papers, the spokesman said.

The three accused were later produced before a designated court in Bangalore, he added.

The arrests and seizure were made following revelations by Telgi, who during his custodial interrogation said that some printing press were still active in Bangalore and other parts of the State which, were printing fake non-judicial stamp papers and fake Government stamps.

After verification, simultaneous searches were carried out today at three places in Bangalore city and two places in Bellary, the spokesman said.

During the search operations, huge stocks of fake non-judicial stamp papers of various denominations were recovered and seized, they said and added that the seizure so far amounted to the value of Rs 1.5 crore.

Apart from Raghvendra Prasad, owner of Janta Printers, his associate Ramchandra, Munna Reddy of Srinivas Printing Press and Mahboob Khan of Dadaji Printing Press were detained by the CBI for interrogation, he said.

Meanwhile, the agency sources said that Khan was also being interrogated and was likely to be placed under arrest.

The CBI alleged that Prasad was indulging in printing of fake non-judicial stamp papers and was supplying these stamp papers to one M/s Citizen Enterprise managed by late brother of Telgi, Rahim Telgi.

The Supreme Court had handed over 48 cases pertaining to the multi-crore fake stamp cases to the CBI in March this year, following which the agency took over investigation into the cases spread in various parts of the country.