History

The South Indian Cooperative Insurance Company, Madras used to finance the House Mortgage Banks by way of loans on a nominal rate of interest. When the Insurance Company was nationalized in 1956, there was no institution to finance these Cooperative House Mortgage Banks.

In these circumstances the necessity of starting some organization to finance these Primary Cooperative House Mortgage Banks were realized. Some of the veteran cooperators and other well wishers wrote articles in the leading news papers regarding this issue and also submitted a memorandum to Government.

The then Chief Minister late Shri.K.Kamaraj introduced a bill in the assembly and permitted to organize a “Central House Mortgage Bank” at Madras. The Tamilnadu Coopertive Housing Federation was originally Registered as a Cooperative Institution under the Madras Cooperative Societies Act VI of 1932 in the Name of “The Madras Cooperative Central House Mortgage Bank” in theyear of 1959 with the object of providing loan to its affiliated Housing Cooperatives for construction of houses and for discharge of prior debts.

When the Banking Regulation Act came in to force, the Apex Society had to maintain Liquidity Ratios and with a view to work outside the purview of the above act and to avoid the maintenance of liquidity ratios, the work “Bank” as per the instructions of the Reserve Bank of India the word “Society” has been substituted with effect from 28.2.1966. Further on the affiliation of various types of building and Rural Housing Societies with this Society the name has been changed as “The Tamil Nadu Cooperative Housing Federation Ltd.”.

Inaugural Function

As requested by the Board of Directors of Madras Central House Mortgage Bank then President of India late Shri.R.Venkataraman has inaugurated the Madras Cooperative House Mortgage Bank on 15.7.1959 while he was the Minister for Cooperation in Tamil Nadu in the presence of late Shri.K.Kamaraj then Chief Minister of Tamil Nadu.

Number of Members and paid-up share capital

The Federation began to work with 5 members, out of whom four were the following Primary Cooperative House Mortgage Banks and other one was individual member.

  • 1. Coimbatore Primary Cooperative House Mortgage Bank
  • 2. Erode Primary Cooperative House Mortgage Bank
  • 3. Madras City Primary Cooperative House Mortgage Bank
  • 4. Government Servants and Pub. Service Primary Cooperative House Mortgage Bank, Madras

At Present there are 619 Urban Cooperative Housing Societies and 197 Taluk Cooperative Housing Societies are members of the Cooperative Housing Federation.

In the beginning, the authorised share capital was fixed as Rs.20/- lakhs. At present this has been enhanced to Rs.300/- crores. The Share Capital position as on 31-03-12 was as follows:

S.No. Particulars No. Amount
(Rupees in crores)
1 Urban Cooperative Housing Societies 619 90.50
2 Taluk Co-operative Housing Societies 197 22.74
3 Government of Tamil Nadu 1 0.63
TOTAL 817 113.87

The Maximum share capital collected by the Federation from the Primary Co-operative Housing Societies is 6 % of the loan amount and share capital collected by the Primary Co-operative Housing Societies from their member is 7%.

Government’s Share Capital

The Government of Tamilnadu have invested a sum of Rs.488.00 lakhs as Share capital to the Federation and this has been reduced to Rs.63.00 lakhs as on 31.03.2012.

Development of the Federation

The growth of the Federation can be given in three stages. In the first stage, this Federation functioned as an Apex Body for affiliated Cooperative House Mortgage Banks (Societies) only which were functioning at corporation, Municipal and Town Panchayat areas.

(b) Till 1972-73 various types of Cooperative building societies were functioning in the State which were financed directly by the State Government. Since the Government stopped financing them in 1972-73 they were deprived of any financing agency to provide them loan assistance. The State Government have issued orders to affiliate all types of these cooperative building societies with the Federation and to provide loan facilities to them. Thus in the year 1972-73, the Federation began to admit various types of cooperative building societies working in the State. This marked the second phase in its growth.

(c) The Tamil Nadu Cooperative Housing Federation took up the Rural Housing activities from the year 1977-78 onwards in accordance with the policy of the State Govt. This marked the third phase in its growth.

Administrative Set up for Supervision of Housing Cooperatives.

  • The Registrar of Co-operative Housing Societies is the head of the housing co- operative department. The Co-operative Housing sector is a two tier system
  • The Tamilnadu Cooperative Housing federation at the Apex level body.
  • The primary cooperative Housing societies at the bottom level
  • Management

    a) In the initial years, the Management of the Federation was vested with a Board nominated by the State Government.

    b) In the year 1965-66, the elected Board assumed office. From that year onwards, the Management of the Federation was vested with elected Board till the supersession of the Board on 9-6-1976 under the Tamil Nadu Co-operative Societies (Appointment of Special Officers) Act 25 of 1976. From 10.6.1976 the Management of the Federation is carried on by the Special Officer appointed by the State Government.

    After the lapse of 22 years an elected Board assumed office from 31.8.1998. From 26-05-2001 to 08-02-2013 the management is carried on by the Special Officer. From 11.02.2013 to 16.07.2013 the management is carried on by the administrator. From 17.7.2013 the Management of the Federation is vested with elected board.

    c) Further two General Managers, three Assistant General Managers and 13 Managers are assisting to the Management in the day to day administration.