New Delhi: The Centre today (Nov 1, 2004) informed the Supreme Court that a comprehensive scheme, including demitting of stamp papers, was being worked out in addition to amendments to the Stamp Act to prevent recurrence of the likes of the Rs 30,000 crore Telgi stamp paper scam.

This was stated by Additional Solicitor General Amarendra Saran before a Bench comprising Justice S B Sinha and Justice S H Kapadia during hearing of a PIL (Public Interest Litigation) filed by Ajay Agrawal.

During an earlier hearing of this PIL, the Court had told CBI to take up investigation of 48 prime cases across the country pertaining to the Telgi scam.

The papers handed over to the Court by Saran showed that in a meeting of finance officials chaired by Finance Secretary D C Gupta, it was decided sometime back that in view of the amendments carried out in the Stamp Act, the States would be asked to send to the Centre a time bound programme to introduce foolproof modern method of revenue collection.

"States will re-work their long-term requirements of stamp paper so that appropriate decisions regarding production planning can be taken, it said.

"Industrial Finance Corporation of India (IFCI) is assisting the Government of India to put in place a pilot project for demitting of Stamp paper. The pilot will be in operation in 10-12 cities. States are free to join the system or introduce similar systems in their jurisdiction," the high-level meeting decided.