1 revenue stamp may make a comeback

The State government on Friday submitted to the Karnataka High Court that it is contemplating bringing back the Re 1 revenue stamp into circulation after it was banned in early 2000.

Advocate General Ravivarma Kumar made this submission before a division bench comprising Chief Justice D H Waghela and Justice R B Budhihal which was hearing a PIL by a Hubballi-based social worker, S V Desai. The petitioner sought directions to some of the banks not to pester for revenue stamps for any agreement and a legal awareness drive be carried out to announce the withdrawal of use of these stamps.

The bench questioned the reason behind the government’s decision to stop the circulation, while the Central Act, which insists upon the use of stamps has not done so.
Kumar submitted that the government had banned the use of revenue stamp following the stamp paper scam.

“It was a panic decision to stop the use of stamps. The decision was taken after Cabinet approval. We have already begun a consultancy process to bring back the usage of stamp. The same will be done after a Cabinet nod. We will give a clear picture by middle of January,” he told the bench.

Bengaluru, dhns: The State government on Friday submitted to the Karnataka High Court that it is contemplating bringing back the Re 1 revenue stamp into circulation after it was banned in early 2000.

Advocate General Ravivarma Kumar made this submission before a division bench comprising Chief Justice D H Waghela and Justice R B Budhihal which was hearing a PIL by a Hubballi-based social worker, S V Desai. The petitioner sought directions to some of the banks not to pester for revenue stamps for any agreement and a legal awareness drive be carried out to announce the withdrawal of use of these stamps.

The bench questioned the reason behind the government’s decision to stop the circulation, while the Central Act, which insists upon the use of stamps has not done so.
Kumar submitted that the government had banned the use of revenue stamp following the stamp paper scam.

“It was a panic decision to stop the use of stamps. The decision was taken after Cabinet approval. We have already begun a consultancy process to bring back the usage of stamp. The same will be done after a Cabinet nod. We will give a clear picture by middle of January,” he told the bench.

The bench then questioned about the non-availability of stamps in the post offices. “The post offices are under the Central government. Why did they stop the circulation of stamps?” the bench questioned.

The State government replied that it may be because the stamps have to be made available through the revenue department. The bench then directed the petitioners to find out how and why the circulation of stamps was stopped by the post office. The bench has also issued notice to Post Master General of Karnataka.

SBI and other banks are still insisting on revenue stamps which were easily available in the black market.