Cooperative housing societies in Tamil Nadu are said to have become a den of corruption in that they refuse to remit money paid towards repayment of loans. There are several cases where they not yet returned title deeds to members who have already repaid their loans.
A large number of aggrieved members have petitioned the Madras High Court seeking relief.
Press Trust of India reports while taking note of a spate of petitions in the matter, the court has ruled that the state govt should immediately lay down guidelines to prevent officials of cooperative housing societies from indulging frauds.
The court observed it is unfortunate that members were forced to approach the court to get their documents through litigation for the reason that the office bearers had siphoned off the money paid by the members.
If appropriate action against the erring officials is not taken, the cooperative system would lose its credibility in the eyes of the people, the court warned.
