Website Link: http://housefedharyana.com/

The Haryana State Cooperative Housing Federation Ltd.,Panchkula came into existence on 7^th June 1973 under the Haryana Cooperative Societies Act with an initial membership of 3 Cooperative House Building Societies which has now increased to 360. Since then it has been playing a significant role in enabling the people of Haryana to have an affordable house which in turn leads to a dignified life. The Housefed Haryana is a lending Institution which advance long term loan to the members through Primary Cooperative House Building Societies on pledge of their properties for construction of residential houses. The Federation caters to the loan requirements of generally lower income group, salaried classes and petty shop keepers. At present the Federation borrowing loan from Life Insurance Corporation of India.

Objectives

(i) To grant loans or advances for construction of new houses shop-cum-flat.

(ii)To acquire, purchase and hire land to develop it into plots and to construct houses on it.

(iii)To arrange bulk purchases of building materials.

(iv) To facilitate the working of Primary Cooperative House building societies.

Activities

(i) To advance loans for construction of new houses/ shop-cum-flats/shop-cum-office and their recoveries.

(ii) To get the houses and loanee members insured with insurance companies and to follow up the claims.

(iii) To work as a spokesman of Primary Cooperative House Building Societies in State.

Financial Position:

(Rs.in lacs)

Borrowing

The Federation has borrowed loan of Rs 122.75 Crores from Life Insurance Corporation of India since its inception on the security of floating charge on the assets of the Federation. No Govt. guarantee raised for raising the above said loan from LIC. The LIC loans of Rs.27.75 Crores are outstanding as on 31.3.2016

(Amt.in Crores)

i) Loan borrowed from LIC since inception. = 122.75

ii)Loan outstanding as on 31.3.2016 = 25.75

iii) Reschedule interest. = 16.65

iii) Interest outstanding = 14.26

iv) Govt. loan = 9.99

Total = 66.65

To liquidate the LIC Loan, the Federation has submittedone time Settlement proposal to LIC of India which is under the consideration of LIC. After the approval of one time settlement scheme by LIC of India the Federation will clear all the dues of LIC. The loan to individual member of the borrowing societyis limited to his income for 48 months or Rs 25.00 lacs whichever is less.The sanctioned loan is disbursed to the societies in three instalments at different stages after obtaining the proper utilization certificates from the field’s staff of the Federation. The loan is advanced for 10 years against the security of mortgage of plot and construction thereon which will be recovered in 40 quarterly instalments consisting of principal and interest. The Federation has advanced loan to the Societies as per detail given below:-

Year (Rs. in lacs) No.of houses

2012-13 310.00 75

2013-14 180.08 31

2014-15 633.05 84

2015-16 180.28 20

Loan to Urban Poors

Apart from above scheme the Federation has started anew scheme from the year 2012-13 to provide loan to Urban Poors i.e Scheduled Castes, Backward classes and Economically Weaker Section of the Society for construction of houses for their residential purposes. There is a proposal to advance Rs.19.60 crores during current Five Year Plan period for construction of 700 houses.

The Federation is only advance loan to the Societiesmembers to whom plots were allotted by HUDA keeping in view the safe recovery. The Federation has advanced Rs.2.20 crores to the members of EWS Cooperative Group Housing Societies upto the year 2013-14,Rs.61.88 lacs during the year 2014-15 and Rs.67.72 lacs during the year 2015-16.

The response of the individuals are poor under thescheme because of the reason that maximum loan limit to an individual is fixed Rs.2.80 lacs and members could not construct houses in urban area from this amount of loan. So to implement the scheme in a better way the maximum ceiling of loan is required to be increased from Rs.2.80 lacs to Rs.6.00 lacs. The Federation has submitted the case to increase the maximum ceiling of loan from Rs.2.80 lacs to Rs.6.00 lacs to Govt. for approval. However the Federation is also providing the additional loan to such members from its own resources.

Loaning Operation: (Amt.in Crores)

(i) Loan sanctioned since inception = 167.60

(ii) No. of housing Units financed. = 21547

(iii) Loan outstanding as on 31.3.2016 = 38.92

(iv) Interest outstanding = 59.17

Recovery

Prior to OTS scheme given by the Government there was good recovery & the Federation was running on sound footing. The Federation was paying the due instalments of LIC regularly and there was no default. The recovery of the Federation is decreased during the Year 2008-09 to 2013-14.

That the Government has observed that enough efforts have not been made for the recovery of overdue loans and on the advice of the Govt. RCS has issued instruction to all Assistant Registrar, Cooperative Societies in State vide letter No. GA/1/09/9871-9908 dated 4-12-2009 to arrange to prepare sale cases of the mortgaged properties and to effect recoveries through sale. The Housefed Haryana has prepared 863 sale cases for the recovery of 37.65 crores over dues of defaulter loanee members.

The process of sale of mortgaged property is very lengthy and cumbersome process which takes more time. The Government should issue instruction to all ARCS to fix the sale dates in sale cases. So that the overdue amount could be recovered from the members. The year wise detail of recovery of the Housefed Haryana are as under:

Year (Rs.in lacs)

2012-13 1272.13

2013-14 331.84

2014-15 285.89

2015-16 461.31

Financial stability :-

Assets:As on 31.3.2016

( Rs.in Crores)

1.Loan outstanding 38.92

2.Interest outstanding. 59.17

3.Deposits 87.98

Total 186.07

Liablity:

1. LIC Loan 25.75

2. Govt. loan 09.99

3. Reschedule interest 16.65

4. Interest outstanding. 14.26

5. Share capital. 19.09

6. Share Capital 50.00

(Govt/NCDC)

Total: 135.74

It is clear from the above data that financial position of

the Federation is sound. The Federation caused default to LIC only due to OTS scheme given by the Govt. and stoppage of sale cases by ARCS. Govt. should issue instructions to ARCS in the State to sale out the mortgaged property of the defaulter loanee members. So that the defaulted amount could be recovered from members and overdue of LIC could be cleared.

Restructuring and right sizing of staff strength

The Federation has restructure and right size its staff strength in the meeting of Board of Directors held on 30.10.2013 and send the case to RCS Haryana vide letter No. 2013/7340 dated 07.11.2013. The RCS Haryana has submitted the case to Govt. for approval vide letter No. Gen/ GA/III/2013/4612 dated 19.12.2013. The Federation has abolished 26 posts and 20 posts were brought under diminishing cadre. After restructuring, the staff positions are as under:-

The Diminishing Cadre implies that as and when the post (s) falls vacant due to any reason i.e. retirement, resignation, death, promotion, adjustment elsewhere etc; the posts (s) stand abolished forthwith.

Office Building

The Federation has constructed the office building on

the plot Bays No.15-16, Sector-14, Panchkula and let out the office building to Municipal Corporation Panchkula on monthly rent of Rs.3.73 lacs per month.

Future Schemes/ Issues pending

i. Loan to urban poor:

There is a proposal to advance term loan of Rs.19.60 crores to urban poors for construction of houses during next five year plan period and out of which Rs.4.00 crores will be advanced during the year 2016-17 to the Economically Weaker Section of the Society in urban areas.

The response of the individuals are poor under the scheme because of the reason that maximum loan limit to an individual is fixed Rs.2.80 lacs and members could not construct houses in urban area from this amount of loan. So to implement the scheme in a better way the maximum ceiling of loan is required to be increased from Rs.2.80 lacs to Rs.6.00 lacs.The Federation has submitted the case to increase the maximum ceiling of loan from Rs.2.80 lacs to Rs.6.00 lacs to Govt. for approval. The approval is still awaited.

ii. Allotment of flats in the colonies development by private Colonizers:

To effectively resolve the problem of Urban Poors the Govt. is requested to issue direction for allotment of residential flats to Housefed in Group Housing Colonies developed by private colonizers for further allotment to members of EWS Cooperative Group Housing Societies. It will be easy to urban poors as both the aspects i.e. flat and finance will be available under one roof and the recovery will also be easy for Housefed as the title will remain with Housefed till the recovery of loan. Scheme is with Govt. for decision.

iv. Affordable Housing Scheme:

The Federation has prepared affordable housing scheme and sent to Registrar, Cooperative Societies, Haryana for approval and the approval is not received so far.

v. Restructure of staff strength:

The Federation has sent the case of restructure and rightsizing of the staff strength of the Federation to Government for approval and the approval is not received so far.

vi. There is a proposal to raise share capital of Rs.2.00 crores from Govt. during 2016-17.

vii. There is a proposal to advance long term loan of Rs.50-00 crores during the 2016-17 to the Cooperative House Building Societies/ Group Housing Societies and individual members.

Contact Us on :hschf@hry.nic.in