Sunday, March 5 2006 12:07 Hrs (IST) - World Time -

New Delhi: The CBI has questioned former DMK MP A S D Jayaseelan in connection with the allegation of helping stamp paper scam accused Abdul Karim Telgi in spreading his network in Tamil Nadu and the agency was now planning to quiz former Union Minister Balasaheb Vikhe Patil.

The CBI team, which questioned Jayaseelan at his Chennai residence, confronted the former legislator with a letter allegedly written by him to then Union Minister of State for Finance Vikhe-Patil for asking the Life Insurance Corporation to buy stamp papers from four private firms, agency sources said here today (Mar 05 2006).

Vikhe-Patil, who was a leader of Shiv Sena at that time, is currently a Congress MP after he switched sides before the Parliamentary polls. The four companies - Marina Services, Sahara Services, Paramount Services and Bharat Enterprises - allegedly belonged to Telgi.

During his questioning, Jayaseelan is alleged to have accepted having written a recommendation letter but added that as a Parliament Member, several of the people from his constituency used to seek favour, which he, in turn, used to send to the respective ministries for necessary action, if required, the sources said.

The letter was sent to Vikhe-Patil, who had forwarded it to the concerned department with a note to take any necessary action, if required, the sources said.

Venkateswar Rao, former Administrative Officer of NIC

Based on this, Venkateswar Rao, former Administrative Officer of National Insurance Corporation allegedly issued letters to all divisional offices of the insurance firm recommending procurement of insurance and revenue stamps from these firms.

CBI was now planning to quiz Vikhe-Patil about his role in the case, the sources said.

The agency had raided the premises of several police and PSU officials and arrested four persons, including a Deputy Inspector General of Tamil Nadu Police, for allegedly helping Telgi in spreading his network in that state.

During investigations of the two cases here, it had been established that fake stamps were being sold by a licensed stamp vendors through Marina Services, operating from Anna Nagar here.

Both the cases were registered by Crime Branch of Chennai Police in 2002 but the investigations were not pursued along proper lines despite the fact that STAMPIT of Karnataka had recovered fake stamps to the tune of Rs 170 crore from the vendor.

As a result of improper probe by the local police, the stamp vendor managed to come out on bail and continue the illegal operations as a part of the organised network of Telgi.