Three employees of the Nashik-based India Security Press have been arrested and four suspended in connection with the multi-crore fake stamp paper scam.

"An inquiry by the Special Investigation Team and the CBI is in progress at the ISP. The Centre is taking action against
its employees based on reports submitted to it by SIT and Banglore's stamp investigation team," a senior ISP official said requesting anonymity.

Also Read Complete coverage The Telgi tale

The three arrested employees are -- a chief purchase officer, a section officer and a clerk, he said.

"ISP has about 7,000 workers, but you cannot write off the whole staff as bad, its due to a few officers and workers that the image of ISP has been maligned," the official said.

The stamp scam's main brain, Abdul Karim Telgi, had spread his network in nineteen states.

A few political figures and several top Mumbai police officials have already been arrested for helping Telgi run his empire.

On Thursday, the Maharashtra government filed a charge sheet against Mumbai's former police commissioner, R S Sharma.