08 October
Reported: Vishal Mayur
PIL Alleges KSLECA's Illegal Practices and Tax Evasion Affecting Public Interest
Bengaluru: High Court of Karnataka has directed the government to investigate over Rs 30,000 Crore in losses attributed to the alleged counterfeiting and illegal sale of stamp papers by the Karnataka State Licensed Electrical Contractors Association (KSLECA). This directive follows a Public Interest Litigation (PIL) filed against the association.
Retired photojournalist Eshwar Raj made this revelation during a press conference held at the Press Club on Tuesday, where he stated that more than 3 Lakh counterfeit stamp papers have been sold since 2013.
According to the Electricity Supply Corporations (ESCOMs), no fees should be charged for applications for new connections. However, it has been reported that KSLECA charges around Rs300 per application, despite higher authorities being aware of this practice.
The PIL claims that KSLECA has violated its licensing conditions set in 2002 under the Karnataka Stamp (Franking Impression of Stamps) Rules, 2000. The Association is said to have used franking machines for unauthorized purposes and has unlawfully sold blank instruments. It is also accused of collecting funds under the name of a "Members Welfare Fund" from both members and non-members while evading taxes.
The petition highlights that state sub-registrars have issued multiple instruments with the same K2 challan number, violating Section 10A of the Karnataka Stamp Act, 1957. This practice raises concerns about the authenticity of the instruments and public interest.
In addition to franking violations, KSLECA is accused of distributing counterfeit stamp papers throughout the state, resulting in significant financial losses. Despite complaints to government officials, no action has been taken, prompting the petitioner to seek judicial intervention.
The High Court has scheduled a follow-up, instructing the Additional Government Advocate to investigate and provide updates to the court by October 24, 2024.