Stamp papers to go hi-tech

Maharashtra govern-ment has decided to opt for a computerized
stamp duty administration system across the state next year.

The government of Maha-rashtra has decided to abolish the
sale of stamp papers thro-ugh vendors and adopt an electronic system-Compu-terized
Stamp Duty Admini-stration System (CSAS). The government plans to introduce CSAS
from April 1, 2005.

The state government had appointed National Securities
Depository Ltd (NSDL) as consultants to come up with a solution in the wake of
the scam. NSDL came up with two options-Franking as an interim measure and
CSAS as a long-term measure.

According to Inspector General of Registration Om Pr-akash
Gupta, the government has decided to bring in accoun-tability by linking the
stamp sale to property registration process. Currently stamp papers can be
purchased by anyone without assigning the purpose. Similarly, property can be
registered in a fake name.

"In the existing system, once the stamp is sold, it is
not possible to trace it. Moreover, possibility of the so-called authorized
vendors indulging in malpractice cannot be ruled out," he added.

A meeting of all secretaries of departments of revenue,
finance and IT has been sche-duled in Pune towards the end of this mo-nth to
decide on the various steps involved in the process of change-over from the
existing system to CSAS.

The proposed system would allow for the storage of the entire
details of the stamp sale and transaction in a central server at a central
depository. The new system would be similar to the demat account for shares.
Hence, once the stamp paper is sold, through authorized centers, transa-ction
details would be im-printed on the paper. When the stamp paper is brought in for
registration of property, the Registrar office can re-confirm the purpose of the
transaction from the central server and authenticate the process. Should any
variations occur, the transaction process could be stopped.

Gupta said that the stamp paper would be sold through
Authorized Duty Collection Centers (ADCCs) like banks, post offices,
semi-government offices and even government offices. The ADCCs would verify the
buyer's name and purpose of purchase, nature of tran-saction and also the name
of counter-party with whom the transaction has been planned. The sold stamp
paper could contain an imprint of the details through the use of sophisticated
front-end tech-nology. The entire process of notification, selection of the
front-end technology and establishment of the network could take nine months to
a year. Once this process is com-plete, the entire functioning of the department
would be totally computerized.

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