CBI probes cardamom corp for fraud

Central Bureau of Investigation has begun a probe into allegations that the Cardamom Marketing Corporation cheated banks and cardamom growers, according to officials of the top police agency Monday.

Earlier, the Spices Board had suspended Cardamom Marketing's licence to hold auctions last week after the scandal came to light.

Based at Vandanmedu, Kerala, the corporation has been conducting cardamom auctions for the last 40 years. However, it hasn't held an auction for more than two months, dealers said.

It is alleged to have taken loans, estimated by dealers at Rs 50-70 crore, from banks on behalf of farmers, who were not aware of these transactions.

Further, it is alleged to have falsified auction receipts to take loans from banks and financial institutions on behalf of growers and defaulted on repayment.

Banks and financial institutions involved in these transactions declined to confirm the sum.