The Charity Commission has launched an inquiry into a north London charity which supports Torah study and other Orthodox causes over a £2 million loan.

The Golders Green-based Reb Moishe Foundation lent the money to a company of which the charity’s sole listed trustee, Jacob Plitnick, is also a director.

According to the charity’s 2013 accounts, the foundation was still owed £2,326,4021 by the company, Gladstar Ltd.

In a statement, the commission said that one of its concerns about the loan was that Gladstar was “reportedly running at a significant deficit and that the interest payable to the charity on the loan has also been reduced”.

The commission was “also concerned about an apparent lack of charitable expenditure, contradictory information provided in the charity’s accounts and the fact that the trustee board is currently inquorate.”

Mr Plitnick, a property developer, said this week that the loan had been repaid and that he had consulted accountants to “put everything in order. I believe everything is settled and running smoothly.”

He said that two more trustees had been appointed to the foundation.

According to the accounts, the foundation received £213,307 in 2013 and donated £44,860.

The commission said it would be looking at a number of issues including whether any conflict of interest had been properly managed and whether the loan had met the charity’s objectives.