THIRUVANANTHAPURAM: A special Vigilance court judge MV Rajakumara ruled that the people accused of massive financial irregularities through loan manipulation in KTDFC, including its former MD Rajasree Ajith, should face trial. Rajasree is the first accused in the case. The action is taken in consideration of the supplementary charge sheet of the vigilance. According to the charge sheet, the KTDFC suffered a loss of Rs 64 lakh. The new chargesheet omits sections of the Prevention of Corruption Act. Earlier, the government had not given permission to try Rajshree.

The irregularity was discovered in a loan granted to Vinod S. Nair, the younger brother of former Devaswom minister VS Sivakumar in 2005. Though the loan was for an amount of Rs 22,48,000, now the liability has mounted to Rs 64 lakhs, including interest. Madhavan's property was purchased in the name of another friend after obtaining power of attorney to sell it to another friend of Vinod. Then an agreement was made with a friend to purchase the same property for Vinod. The loan was arranged on the basis of this agreement. The loan was given to Vinod without taking the original document as collateral, without checking the repayment capacity and by showing an increased market value in the documents. Apart from Rajasree, the chief managers, deputy manager, general manager of District Industries Centre and chartered accountant are also accused.