Abdul Karim Telgi Scam – From Small Time Crook to Billion-Dollar Scammer!

Abdul Karim Telgi Scam: The story of Abdul Karim Telgi, known to many as Karim Lala, is one of “Rag to Riches” built on the foundations of a scam so huge that the official number are not confirmed. However as per multiple report, it is claimed that the scam amounted up to 30,000 Cr. This scam had Telgi selling forged stamps and other legal documents across 12 states, with the help of at least 300 agents, spread across India. The scandal shook multiple state governments, especially the state of Maharashtra. It also led to the arrest of an Ex-Commissioner of Police. Today we will take a look at the story of a man who sold counterfeited stamp paper to the entire nation, for at least a decade i.e Abdul Karim Telgi Scam. We’ll look at where he was born, his first stint as a counterfeiter, and also go on to learn about how he managed to run such a massive operation until it all came to an end. The scam originated from the counterfeiting of Stamp paper, the one used in the making of judicial and non-judicial agreements. A stamp paper is an A4 size piece of paper valued at prices varying from Rs. 10 to Rs. 2,000. The value of the stamp paper depends on the purpose of creating the agreement. The higher the value of the agreement, the more the value of the stamp paper. This said value attached to the paper is called Stamp Duty. This is a form of indirect tax charged by the government of the respective state. Who is Abdul Karim Telgi? Abdul Karim Lad Saab Telgi was born in Belgaum district of Karnataka in 1961. His father was an Indian Railways employee who died when Abdul was young. Telgi managed to pay for his education at Sarvodaya Vidyalaya, by selling fruits & vegetables on trains. From a very young age, Telgi was a very ambitious man. So ambitious, that he would not mind breaking a few rules to succeed. At a young age, Telgi moved to Saudi Arabia where he spent 7 years. He then returned back to begin a new chapter in his life: Counterfeiting Although one might assume that this was the start of the counterfeiting of stamp paper, Telgi initially began his journey counterfeiting Passports. He started a travel agency named Arabian Metro Travels. He would create fake passports as well as other supporting documents that would facilitate an easier route for laborers to make a career in the Middle East, even if it was through illegal means. The business ran quite well until it came under the radar of immigration authorities. In 1993, he was taken into custody by the MRA Marg Police Station in Mumbai. Here his luck turned again upon meeting Ram Ratan Soni, a government Stamp Vendor from Kolkata who hired Telgi to sell stamp papers for him, in return for commission. Where Scam Meets Strategy: Telgi’s Own Press In 1994, Telgi in connection with Soni acquired a license to become a legal Stamp Vendor. He then acquired an old machinery that Nashik Security Press had shut down. The machine would now be used to print forged stamp papers that would be sold by Telgi. In 1996, Telgi, through his most powerful connections, managed to set up his own press on Mint Road in Mumbai. By using his links, he purchased multiple machines that were declared obsolete. Over the next 7-8 Years, he continued to sell these fake stamp papers to top companies and banks at heavy discounts. Major brokerage houses and insurance Companies were also his customers. It is reported that Telgi bribed employees at the Indian Security Press in Maharashtra to help him create an artificial shortage of stamp paper in the Market. The man had connections throughout, from employees at the stamp paper office to police and other government officials. All of them helped Telgi operate at such a scale, without being caught. Fraud and Forgeries Unleashed On August 19, 2000, Telgi’s two men were arrested in Bengaluru, while smuggling fake sheets. Police Interrogation of these Men led to multiple raids conducted across Bengaluru, in which the officials seized an estimated Rs. 9Cr worth of fake stamps paper and other forged legal documents. The police finally caught Telgi in November 2001 while he was on a religious pilgrimage at Ajmer, Rajasthan. A Special Investigation Team (SIT). IPS Officer Sri Kumar led a Special Investigation Team (SIT) named STAMPIT, which was set up to investigate the scam. After filing the chargesheet, they sent Telgi to jail. The team requested permission from the court to question Telgi in prison, which was granted two weeks after his arrest. In 2003, Social Activist Anna Hazare filed a Public Interest Litigation (PIL) with the Bombay High Court, alleging the then Commissioner of Mumbai Police R.S. Sharma for improperly handling the Telgi case. IPS Sri Kumar, in an interview, said, “Telgi was a tough nut to crack. He never gave free information. Instead when cornered with evidence, he confirmed or denied”. In fact, the team even conducted a narco analysis on Telgi, in the hopes of getting some leads that they could investigate. The End of It, Or Just the Beginning Of Something More…? Although he was in jail, Telgi continued his operations from the prison. STAMPIT’s investigation revealed that in the early 2000s, he used mobile phones to run his operations. However, he would always discover that the police were tracking his phone, at which point he would change his number. Every time he changed his mobile number, the police had to run around to secure permission to track the respective number, which took several days. Telgi was well aware of this and made sure to exploit every loophole in the Indian Judicial System. In 2017, the High Court convicted two prison officials relating to the supply of mobile phones in prison. As per a report by The Financial Times published in 2003, at least 12 cases were filed against Telgi in Maharashtra alone, relating to these stamps. Another 15 cases were filed in other states, however, no serious action was taken. Facing The Consequences … The SIT then went on to arrest 54 people, including Anil Gote, a Samajwadi Janata Party legislator from, Maharashtra, and MLA Krishna Yadav of Telugu Desam Party. Commissioner Sharma was also arrested after his retirement for allegedly protecting Telgi. In 2005, a tax demand of Rs 120 crore was levied on Telgi, which was one of the highest tax liabilities imposed on an individual at the time. In the AY1996–97 alone, the Tax Department evaluated his income to be Rs. 4.54Cr, of which Rs. 2.29Cr was “unaccounted.” He also faced a sentence of 30 years behind bars and a hefty fine amounting to Rs 202Cr. Case Closed On October 23, 2017, Telgi passed away due to multiple organ failures at Victoria Hospital, Bengaluru. He was also suffering from many long-term illnesses, including hypertension and diabetes, as well as meningitis. A year after his death, the Nashik session court in Maharashtra cleared Telgi and seven others in the Stamp Paper Scam case. The court judge, P R Deshmukh, ruled that the case could not proceed further, due to lack of evidence. Lessons Learnt The scam exposed severe vulnerabilities in India’s administrative and regulatory systems. The scandal also led to reforms in stamp paper issuance and the digitization of stamp paper records. Finance Minister Jaswant Singh at Lok Sabha said that the value of the fake stamp papers recovered by various investigative agencies was Rs 3,376Cr. He also said that since most of the stamp duties were payable to state governments, the loss of revenue for the Centre had been very little. He also said that the government would recognize all transactions executed on these stamp papers as Genuine, and claimed no legal defect in any such documents. State Governments of Karnataka and Maharashtra imposed the use of fracking machines over the old Stamp Papers. A franking machine is intended to stamp impressions of dies of approved design on private and official articles in payment of stamp duty. With this we finally reach the end of quite a long article. So what do you have to say about Abdul Karim Telgi Scam? Do you think such a fraud can occur again today? Do let us know in the comments below. Written By Nasir Hussain By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions. The post Abdul Karim Telgi Scam – From Small Time Crook to Billion-Dollar Scammer! appeared first on Trade Brains. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [16 Trading Titans. One Game-Changing Book. Unlock Their Secrets in “Masterminds of the Markets” Click here to get your FREE PLAYBOOK now!]( [Abdul Karim Telgi Scam – From Small Time Crook to Billion-Dollar Scammer!]( Abdul Karim Telgi Scam: The story of Abdul Karim Telgi, known to many as Karim Lala, is one of “Rag to Riches” built on the foundations of a scam so huge that the official number are not confirmed. However as per multiple report, it is claimed that the scam amounted up to 30,000 Cr. This scam had Telgi selling forged stamps and other legal documents across 12 states, with the help of at least 300 agents, spread across India. The scandal shook multiple state governments, especially the state of Maharashtra. It also led to the arrest of an Ex-Commissioner of Police. Today we will take a look at the story of a man who sold counterfeited stamp paper to the entire nation, for at least a decade i.e Abdul Karim Telgi Scam. We’ll look at where he was born, his first stint as a counterfeiter, and also go on to learn about how he managed to run such a massive operation until it all came to an end. The scam originated from the counterfeiting of Stamp paper, the one used in the making of judicial and non-judicial agreements. A stamp paper is an A4 size piece of paper valued at prices varying from Rs. 10 to Rs. 2,000. The value of the stamp paper depends on the purpose of creating the agreement. The higher the value of the agreement, the more the value of the stamp paper. This said value attached to the paper is called Stamp Duty. This is a form of indirect tax charged by the government of the respective state. Who is Abdul Karim Telgi? Abdul Karim Lad Saab Telgi was born in Belgaum district of Karnataka in 1961. His father was an Indian Railways employee who died when Abdul was young. Telgi managed to pay for his education at Sarvodaya Vidyalaya, by selling fruits & vegetables on trains. From a very young age, Telgi was a very ambitious man. So ambitious, that he would not mind breaking a few rules to succeed. At a young age, Telgi moved to Saudi Arabia where he spent 7 years. He then returned back to begin a new chapter in his life: Counterfeiting Although one might assume that this was the start of the counterfeiting of stamp paper, Telgi initially began his journey counterfeiting Passports. He started a travel agency named Arabian Metro Travels. He would create fake passports as well as other supporting documents that would facilitate an easier route for laborers to make a career in the Middle East, even if it was through illegal means. The business ran quite well until it came under the radar of immigration authorities. In 1993, he was taken into custody by the MRA Marg Police Station in Mumbai. Here his luck turned again upon meeting Ram Ratan Soni, a government Stamp Vendor from Kolkata who hired Telgi to sell stamp papers for him, in return for commission. Where Scam Meets Strategy: Telgi’s Own Press In 1994, Telgi in connection with Soni acquired a license to become a legal Stamp Vendor. He then acquired an old machinery that Nashik Security Press had shut down. The machine would now be used to print forged stamp papers that would be sold by Telgi. In 1996, Telgi, through his most powerful connections, managed to set up his own press on Mint Road in Mumbai. By using his links, he purchased multiple machines that were declared obsolete. Over the next 7-8 Years, he continued to sell these fake stamp papers to top companies and banks at heavy discounts. Major brokerage houses and insurance Companies were also his customers. It is reported that Telgi bribed employees at the Indian Security Press in Maharashtra to help him create an artificial shortage of stamp paper in the Market. The man had connections throughout, from employees at the stamp paper office to police and other government officials. All of them helped Telgi operate at such a scale, without being caught. Fraud and Forgeries Unleashed On August 19, 2000, Telgi’s two men were arrested in Bengaluru, while smuggling fake sheets. Police Interrogation of these Men led to multiple raids conducted across Bengaluru, in which the officials seized an estimated Rs. 9Cr worth of fake stamps paper and other forged legal documents. The police finally caught Telgi in November 2001 while he was on a religious pilgrimage at Ajmer, Rajasthan. A Special Investigation Team (SIT). IPS Officer Sri Kumar led a Special Investigation Team (SIT) named STAMPIT, which was set up to investigate the scam. After filing the chargesheet, they sent Telgi to jail. The team requested permission from the court to question Telgi in prison, which was granted two weeks after his arrest. In 2003, Social Activist Anna Hazare filed a Public Interest Litigation (PIL) with the Bombay High Court, alleging the then Commissioner of Mumbai Police R.S. Sharma for improperly handling the Telgi case. IPS Sri Kumar, in an interview, said, “Telgi was a tough nut to crack. He never gave free information. Instead when cornered with evidence, he confirmed or denied”. In fact, the team even conducted a narco analysis on Telgi, in the hopes of getting some leads that they could investigate. The End of It, Or Just the Beginning Of Something More…? Although he was in jail, Telgi continued his operations from the prison. STAMPIT’s investigation revealed that in the early 2000s, he used mobile phones to run his operations. However, he would always discover that the police were tracking his phone, at which point he would change his number. Every time he changed his mobile number, the police had to run around to secure permission to track the respective number, which took several days. Telgi was well aware of this and made sure to exploit every loophole in the Indian Judicial System. In 2017, the High Court convicted two prison officials relating to the supply of mobile phones in prison. As per a report by The Financial Times published in 2003, at least 12 cases were filed against Telgi in Maharashtra alone, relating to these stamps. Another 15 cases were filed in other states, however, no serious action was taken. Facing The Consequences … The SIT then went on to arrest 54 people, including Anil Gote, a Samajwadi Janata Party legislator from, Maharashtra, and MLA Krishna Yadav of Telugu Desam Party. Commissioner Sharma was also arrested after his retirement for allegedly protecting Telgi. In 2005, a tax demand of Rs 120 crore was levied on Telgi, which was one of the highest tax liabilities imposed on an individual at the time. In the AY1996–97 alone, the Tax Department evaluated his income to be Rs. 4.54Cr, of which Rs. 2.29Cr was “unaccounted.” He also faced a sentence of 30 years behind bars and a hefty fine amounting to Rs 202Cr. Case Closed On October 23, 2017, Telgi passed away due to multiple organ failures at Victoria Hospital, Bengaluru. He was also suffering from many long-term illnesses, including hypertension and diabetes, as well as meningitis. A year after his death, the Nashik session court in Maharashtra cleared Telgi and seven others in the Stamp Paper Scam case. The court judge, P R Deshmukh, ruled that the case could not proceed further, due to lack of evidence. Lessons Learnt The scam exposed severe vulnerabilities in India’s administrative and regulatory systems. The scandal also led to reforms in stamp paper issuance and the digitization of stamp paper records. Finance Minister Jaswant Singh at Lok Sabha said that the value of the fake stamp papers recovered by various investigative agencies was Rs 3,376Cr. He also said that since most of the stamp duties were payable to state governments, the loss of revenue for the Centre had been very little. He also said that the government would recognize all transactions executed on these stamp papers as Genuine, and claimed no legal defect in any such documents. State Governments of Karnataka and Maharashtra imposed the use of fracking machines over the old Stamp Papers. A franking machine is intended to stamp impressions of dies of approved design on private and official articles in payment of stamp duty. With this we finally reach the end of quite a long article. So what do you have to say about Abdul Karim Telgi Scam? Do you think such a fraud can occur again today? Do let us know in the comments below. Written By Nasir Hussain By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions. 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