Mumbai: Stamp paper vendors protest over recent circulars

The Asiatic Society of Mumbai Town Hall, which houses the office of the additional controller of stamps. File Pic

On Thursday, talks between Mudrank Vikreta Sangh, Mumbai, an association of private stamp paper vendors with the senior revenue officials yielded no results, compelling protesting stamp vendors to continue their agitation.

Ashok Kadam, the union president from Dadar, who has been a licensed stamp vendor for thirty years, said, "Our talks with Deputy Revenue Secretary Satyanarayan Bajaj at Mantralaya on Thursday were inconclusive, as he has asked for more time to reply. We have no option but to continue our protest."

Issue of contention

The union was objecting to circulars issued by the additional controller of stamps (the supervisory authority on stamp paper vendors) before his transfer.

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Two of the main concerns are a circular dated February 21, 2023, which mandates that from April 1, stamp paper cannot be bought by a third party and that individuals who need stamp paper must be physically present with valid identification in front of stamp vendors.

The second issue, according to the union, is that a person residing anywhere outside Mumbai or in any other district in Maharashtra is not allowed to buy stamp paper from a Mumbai stamp vendor.

Mudrank Vikreta Sangh members claim that the stamp officials are not stringent when it comes to adhering to their own rules and circulars on vendors operating from out of Mumbai.

"We are getting step-motherly treatment from the stamp department. We adhere to the rules and regulations, but our pleas go unheard. If the department circular has to be adhered to, it should be implemented across the state, and not only in Mumbai. When surprise raids and records of our register are checked by stamp officials, they restrict their check to only Mumbai city and suburbs and not the outskirts," said Kadam.

According to Kadam, on Saturday, the state association of stamp vendors have a meeting in Dhule, where all the stamp vendors from the state will be present and discuss this issue. They will decide their next step at the meeting.

Jurisdiction circular cancelled

A highly placed source in the state government informed mid-day that the issues raised by the union, the jurisdiction one has been resolved, with the Inspector General of Registration and Controller of Stamps, cancelling the said circular issued by the additional controller of stamps.
Shravan Hardikar, inspector general of registration (IGR) and controller of stamps, Maharashtra, said, "We checked the Bombay Stamp Supply and Sales Rules, 1934, and checked for Government Resolutions, if any, but did not come across any provisions that put an embargo on a stamp vendor from Mumbai selling stamp paper to people who reside outside city limits or anywhere in Maharashtra. I have used my discretionary power and have cancelled the circular issued by the additional controller of stamps. This means stamp papers can be bought by anyone from any licensed stamp vendor in the state."

February 21 circular status

Asked about the status of the February 21 circular, the IGR said, "The circular has only reiterated provisions laid down in the Bombay Stamp Supply and Sales Rules and was issued within the ambit of the power of the additional controller of stamps. The demand from the protesting union is to change the rule, which is not in my power. The appropriate authority in the state government has been informed and is in dialogue with the protesting vendors."

Why now

A senior stamp official who did not wish to be identified said, "The said rules where a person has to physically be present to buy the stamp papers is clearly stated in rules 13 and 15 (1) of the Bombay Stamp Supply and Sales Rules. Also, there is an exception, where corporate, bank or credit cooperatives can appoint a nominated person who will be authorised to collect stamp paper from vendors, like they always did."

Asked whether an industrialist or celebrity will have to be physically present before the stamp vendor to buy stamp paper, the officer replied in the negative, stating, "The ground-level scenario remains unchanged. The circular only reiterates rules that have been in existence since 1934 and amended at regular intervals. The last amendment to the rules was in 2019 and these provisions remain unchanged."

Reason for issuing circular

While discussing with the union and government officials about the ongoing protest, officials who did not wish to be named claimed that the current tussle between stamp paper vendors and advocates might be a reason for the circular being issued. The additional controller of stamps might have received representation from practising advocates and even others.

The second reason, sources say, might be the confusion over the actual value of stamp paper that the vendor sell per person per day. Until now they were selling stamp paper worth R30,000, which was not as per the stamp rules, which restrict the sale to R10,000. This means a loss of revenue for vendors. The vendor gets 3 per cent per denomination of stamp paper sold, which has upset licensed vendors.

Way out

Hardikar confirmed that nothing has changed for the citizens, who can always opt for the alternative method of stamping, that is getting their document franked, and can still execute all documents as per the law.

Asked why government departments insist that affidavits be on stamp papers, instead of franking, Hardikar clarified, "We must understand that there is no short supply of stamp paper, only a handful of vendors are protesting, but stamp paper is available with non-protesting vendors and at courts. Even the protesting vendors are protesting over a non-issue"
Satish Deshmukh, who had issued the circular when he occupied the post of additional controller of stamps, has been transferred and the post is vacant though temporary charge has been given to another officer.

In figures

According to Hardikar, The annual revenue generated by stamp duty and registration charges in Maharashtra is approximately Rs 40,000 crore, of which nearly 98 per cent of the revenue is generated through e-payment. Around Rs 3,000 to 4,000 crores is collected through franking, court fee stamps, etc. The revenue through the sale of physical stamp paper is approximately R1,000 crore in the entire state.

The state government has waived off stamp paper usage for making affidavits for government-related matters and has also made necessary amendments. Stamp paper worth R500 is now used only for private matters.

And on the number of stamp vendors in the state of Maharashtra, the IGR said, "Mumbai has only 11 licensed stamp vendors who are protesting at present."

Kadam, however, said, "There are around 28 licensed stamp vendors, including vendors selling in courts, bar association, etc, in Mumbai city and suburbs. Though other stamp vendors are not protesting with us, they support us."