Mavericks - no longer able to move files to trash

Mid 2010 McBook Pro, Mavericks clean install.



I am no longer able to move files to Trash. When I hit CMD-Delete, I get a warning that the file will be permanently deleted.



Earlier, it used to move it to Trash and I had to empty Trash.



I am not even able to drag files to the trash any more.



Google has been no help.



Has anyone else faced this at all? Any ideas would be appreciated.



Thanks and cheers

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