Thesis Submitted To The Pondicherry University in Partial Fulfillment of The Requirements For The Award of The Degree of

NATTUKOTTAI CHETTIARS
BUSINESS PRACTICES AND PERSPECTIVES
Thesis submitted to the Pondicherry University in partial fulfillment of the

requirements for the award of the degree of
Doctor of Philosophy
in
Management
By
Punitha. A
Ph.D. Research Scholar (Part time – Internal)
Under the Guidance and Supervision of

Dr. Chitra Sivasubramanian
Associate Professor,
Department of Management Studies
Pondicherry University

School of Management
May 2016
Nattukottai Chettiars
Business Practices and
Perspectives
Dr. R.Chitra Sivasubramanian
Associate Professor
Puducherry – 605 014
______________________________________________________________________
CERTIFICATE
This is to certify that the thesis entitled “Nattukottai Chettiars – Business

Practices and Perspectives”, submitted by Ms. Punitha. A, Research Scholar (Part time –
Internal) to the Department of Management Studies, School of Management, Pondicherry
University, Puducherry for the award of the degree of Doctor of Philosophy, is a bonafide
record of research work carried out by her under my supervision. The contents of this
thesis, in full or in parts, have not been submitted to any other Institution or University for
the award of any degree or diploma.
Dr. R.Chitra Sivasubramanian

Research Supervisor
Place:
Date:
Punitha. A
Research Scholar (Part time- Internal)
Pondicherry Univeristy
Puducherry – 605 014
____________________________________________________________________________
DECLARATION
I hereby declare that the research work in this thesis entitled “Nattukottai
Chettiars – Business Practices and Perspectives”, submittedtowards the degree of
Doctor of Philosophy in Management is the original work done by me under the guidance
of Dr. R. Chitra Sivasubramanian, Associate Professor, Departmentof Management
Studies, Pondicherry University, Puducherry. I further declare that the content of this
thesis, in full or in parts, have not been submitted by me to any other institution or
University for award of any degree or diploma.
Punitha. A
Place:
Date:
Acknowledgements
There was an abstract picture of this part of the thesis always in the corner of mind,
all these five years of research. It’s like a trip down the memory lane, being grateful to the
Almighty, for surrounding me with such a handpicked group of good people. I thank God
for accommodating me into this serene University and the beautiful campus.
My Research Guide Dr.Chitra Sivasubramanian is to be thanked with all the
gratitude I have in me for being such a motivating supervisor, at times a sister, teacher,
friend and most of the time – an angel to me. I thank god for ushering my research under
her supervision. I thank whole heartedly Prof.R.Panneerselvam, HOD of Department of
Management Studies for his kind support.
I sincerely thank Prof.G.Anjaneya Swamy, Dean, School of Management for the
kind help and support. Being Doctoral Committee member of the study, it is his
constructive contributions and the strong support that pushed me during the slack times.
Very special thanks are attributed to him for helping me in finalizing the title of the study.
Working under him is quite an experience of learning perfectionism;I thank him for that
too. I thank whole heartedly Dr. R. Kasilingam, Doctoral Committee Member who
contributed to the study with constructive criticisms and supported all along with a smile.
My respectful thanks to my three mentors, who are very important for the study to
take a good shape.First, Prof. Raman Mahadevan, acclaimed Business Historian and a man
of wisdom, who blessed me and guided me with such a grace only possible for a pioneer
like him. Second, Dr. Pasupathy, Food Safety Scientist, who is more like a brother to me
than mentor, and the one responsible for sowing the seed of this research idea. I
affectionately thank him for the ready guidance any time, even with his busy schedules.
Next is Dr.Lazar, Dept. of Commerce, PU – my friend, colleague and mentor. I specially
thank him for his “patience” in listening to my crazy ideas and still steering me into the
right path of the research.
I thank all the staff of the DMS, who helped and supported me during the study.
Special thanks to Mrs. Mala of Roja Muthiah Library, staff of National Library, Kolkatta
and the staff of Kovilur Mutt Library for their tremendous and out of the way support. I
thank Thuirunavukkarasu Annanfor shoving me into the Kovilur Mutt Library. I thank my
house keeper Ms. Saraswathi, for taking good care of me with patience during my study.
Friends- life is not complete without friendships and so is the research work. I thank
Mrs. Umasri, my colleague for being my ride and for being on my side for years now. Her
tremendous support pulls a special mention. I thank Mrs. Kanimozhi and Mr.Nizamuddin
for their supportive and truthful friendship which helped at low times of research.
If there is anybody in the world who doesn’t expect to be thanked, it should be a
mother. My Amma- nobody has invented yet a word that will rightly express my gratitude
to her. Hence, I dedicate this thesis on her feet. I thank my brothers Saravana and Gopi, my
pillars of strength, my sisters (in –law) Theivanai and Subha for their love and for taking
care of me affectionately. I thank my loving sister Deepa and brother-in-law, for being
there for me always, no matter what I request for. I thank my nephews and nieces,
especially Agathiya and Sanjana parvathy, who beautifyand rejuvenate my days with their
smiles.
I thank my brother Ramachandran, who is also my friend, philosopher and guide
for helping me moldmyself and for strengthening me to complete this work. I thank with
respect my uncle Shanmugasundaram for the great, strong, and kindwords of
encouragement and appreciation for the study. It worked wonderfully, thank you very
much.
Usually they say “a woman behind a man’s success”, but I have three men behind
my completion of this thesis.
My father – Appa, I am because, you were. It is your belief in honesty and goodness
in life that transcended all our lives. Thank you.
My friend “Nallakeerai” Jagan –who took me to all the places I wanted to go to
collect data, sometimes without knowing the destination or availability of books. He did it
without a word of grunt. Without your help, this was impossible. Thank you for your
unbeatable patience.
My Son (sun) Surya - my pillar of motivation and destination and the reason for
taking up this big step. The support he has shown during my research period needs tons of
words to thank and hence, I am not doing it. Just, I will say, I love you.
Contents
List of Maps i
List of Figures i
List of Tables i
Abstract ii
1 Introduction 1
1.1 Business Communities of India 1
1.2 Importance and Influence of Business Communities in India 3
1.3 Introduction to Nattukottai Chettiars 4
1.3.1 Historical inference/ Maritime Trading 5
1.3.2 Geographical Location 6
1.3.3 Nine Temples – the Base 8
1.3.4 Indigenous Bankers 9
1.3.5 Places of Business 11
1.3.6 Characteristics 12
1.3.7 Family 14
1.3.8 Architecture 15
1.3.9 Chettinadu cuisine 16
1.3.10 Chapter Summary 17
1.4 Review of Literature 17
1.4.1 Research Works on Nattukottai Chettiars 17
1.5 Research Origin 20

1.6 Research Gap 21
1.7 Research Questions 25
1.8 Need of the study 26
1.9 Scope of the study 27
1.10 Objectives 28
1.11 Research Methods 29
1.11.1 Research Strategy 29
1.11.2 Qualitative Methods 30
1.11.3 Interviews 30
1.11.4 Data Reduction 30
1.11.5 Coding of Data 31
1.11.6 Observation 31
1.11.7 Simplistic Inductivism 32
1.11.8 Analysis and Interpretations 32
1.11.9 Concept generalizations 32
1.11.10 Sources of data 33
1.11.11 Reliability and validity of data 34
1.12 Future scope of the study 34
1.13 Chapterisation 35
2 Business Practices 37
2.1 Introduction 37
2.2 Trading – Historical inferences &Overview 38
2.2.1 Pattinathar 43
2.2.2 Karaikal Ammayar 44
2.3 Business practices -Colonial Era 45
2.3.1 British India and the Indian Business 45
2.3.2 Business Practices 48
2.3.3 “Kittangi” - TheShop 50
2.3.4 Agency system 53
2.3.5 Sub –Agency or “Utkadai”: 54
2.3.6 Capital and Deposits 55
2.3.7 Loans 61
2.3.8 Interest rates on Deposits and Loans 61
2.3.9 Practice of “Magamai” 66
2.3.10 Trade language 67
2.3.11 Choultries (Nagara viduthi) 68
2.3.12 Hundis (Undi, Undial - ) 69
2.3.13 Book keeping methods 74
2.3.14 Human Resources Management 75
2.3.15 Other Business Ventures – Textile Industry 80
2.3.16 Other Industries 82
2.4 Business –The Phase of Independence 83

2.4.1 The Transition 83
2.4.2 Cotton and Textiles 89
2.4.3 Banking Business 89
2.4.4 Other challenging industries 92
2.5 Business – The Phase of Globalisation 96

2.5.1 Change of Practices 97
3 Business, Places and People 100

3.1 Burma (Myanmar) 100
3.1.1 Introduction 100
3.1.2 Chettiars, Indiansand Burma - Impressions 101
3.1.3 Funds 106
3.1.4 Firms 109
3.1.5 Acquisition of Lands 110
3.1.6 Japanese Invasion on Burma 112
3.1.7 Nationalisation of Lands 112
3.1.8 Rice Riots and consequences 114
3.1.9 Separation of Burma 116
3.1.10 Nattukottai Chettiar Association 121
3.1.11 Conclusion 122
3.2 Ceylon (Srilanka) 123

3.2.2 Rice Riots 124
3.2.3 Chetty Crisis 127
3.2.4 Acquisition of lands and estates and accusations 128
3.2.5 Chettiars Association 129
3.2.6 Exodus of Chettiars from Ceylon 129
3.3 Malaya (Malaysia) 131

3.3.1 British Malaya 131
3.3.2 Swampy jungles to paddy lands – The conversion 132
3.3.3 Rural Indebtedness and Colonial reactions 134
3.3.4 Acquisition of Land and Estates 138
3.3.5 Trade 139
3.4 Straits Settlementsand Singapore 141

3.4.2 Trade and Banking 143
3.5 Indo China (Vietnam) and Saigon (Ho Chi Minh City) 146
3.5.2 Money lending in Saigon and Cohinchina 146
3.5.3 Depression, Riots and Expulsion 148
3.5.4 Chettiars – Villains and Heroes 149
4 Economic, Social-cultural and Political Perspectives 152

4.1 Economic Perspectives 152
4.1.1 Multiplying money 152
4.1.2 Assets and Investments 152
4.2 Socio-cultural Perspectives 154

4.2.2 Chettiars in Society and Chettiar’s Society 156
4.2.3 Family 157
4.2.4 Marriage 158
4.2.5 Reciprocated Dowry and its consequences 159
4.2.6 Division of Assets 160
4.2.7 Adoption of Son 162
4.2.9 Seclusion/ inclusion with other communities: 165
4.2.10 Community Organization and Associations 167
4.2.11 Community Decisions and Obedience 169
4.2.12 Women’s role in the Community and Business 171
4.2.13 “Nagara viduthi” 173
4.2.14 Social Life of Chettiars in Southeast Asia 175
4.2.15 Spirituality 176
4.2.16 Philanthropy 179
4.3 Political Perspectives 189
4.3.1 Colonial Phase 189
4.3.2 Phase of Independence Struggle 190
4.3.3 Southern Indian Chamber of Commerce 193
5 Conclusion 195
5.1 Discussions – Business Perspectives 195
5.1.1 USURY - Criticisms and Crucifications on Chettiar Interest rates 195
5.1.2 Rural Indebtedness 200
5.1.3 Insider’s Perspectives 201
5.1.4 Criticism -Cooperation with the Colonial government 202
5.1.5 Financial Cliques 204
5.1.6 Business Bonds or Familial bonds 205
5.1.7 Values and Ethics 207
5.2 Socio-cultural Perspectives 210

5.2.1 Origin and time line 210
5.2.2 Architecture:Implications and impact of the palatial houses 213
5.2.3 Behavioral Changes 215
5.2.4 Population 217
5.2.6 Identity 225
5.2.7 Socio-Cultural Evolution 225
5.3 Recommendations and Conclusion 227

5.3.1 Wealth creation and Multiplication: 227
5.3.2 Wealth Management: 227
5.3.3 Social status and Heritage 227
5.3.4 Spirit of Entrepreneurship 228
5.3.5 Stepping beyond caste and towards community 228
5.3.6 Possibilities to remake the history 228
5.4 Limitations 229

Bibliography 231
Appendix i
List of Maps
MAP 1-1: VATTAGAIS AND CLAN TEMPLES 7
MAP 1-2: CHETTIAR BUSINESS LOCATIONS (STARRED) 12
MAP 3-1: STRAITS SETTLEMENTS AND FEDERATED MALAY STATES 142
MAP 3-2: FRENCH INDO-CHINA 147
List of Figures
FIGURE 1-1: CHETTINADU PALACE, KAANADUKAATHAN 16
FIGURE 1-2: STUDIES ON CHETTIARS 23
FIGURE 2-1: CHETTIAR CHILDREN 43
FIGURE 2-2: A CHEQUE OF 1910 DISPLAYING THE TOZHILVILASAM 49
FIGURE 2-3: A KITTANGI 50
FIGURE 2-4: A KITTANGI ORGANOGRAM 51
FIGURE 2-5: KAI PETTI 53
FIGURE 2-6: INTEREST BOOKLET 65
FIGURE 2-7: THAVANAI HUNDI MODEL 73
FIGURE 2-8: DARISANAI HUNDI MODEL 73
FIGURE 3-1: A STATUE OF CHETTIAR WITH HIS “KAI PETTI” IN BOAT QUAY, SINGAPORE 145
FIGURE 4-1: IMPORTANT ELEMENTS OF CHETTIAR SOCIETY 155
FIGURE 4-2: “KAZHUTHIRU” 160
FIGURE 4-3: 1920 CENSUS BASED ON NINE CLAN TEMPLES 167
FIGURE 4-4: 2006 CENSUS OF DEVAKOTTAI CHETTIARS 168
FIGURE 4-5: “CHETTINADU KOTTANS” 172
FIGURE 4-6: RAMESWARAM NAGARA VIDUTHI 175
FIGURE 5-1: A JOINT EFFORT FOR COMMUNITY FUNCTIONS 224
FIGURE 5-2: “NADU VEETU KOLAM” FOR OCCASIONS AT HOMES 224
FIGURE 5-3: BOARD TO DRAW LINES 225
List of Tables
TABLE 2-1: RATES OF RETURN IN DIFFERENT COUNTRIES 64
TABLE 2-2: NORTH INDIAN AND NATTUKOTTAI CHETTIARS’ GROUPS (UNIT: 10 MILLION RUPEES) 93
TABLE 3-1: PADDY CULTIVATION AREA 106
i
Abstract
Nattukottai Chettiars, also called as Nagarathars, hails from the southern part of
Tamilnadu. The place they inhibit is called as “Chettinadu”, meaning –the land of Chettys.
Chettiars are southern equivalent to the “vaishyas” or “baniyas” of Northern India. The
Nattukottai chettiars stand out for their adventurous spirit of entrepreneurship, as the
history mentions them as Maritime traders. They acquired huge wealth and fame during
1800- 1940s by venturing into the Southeast Asian countries as money lenders and traders.
Their indigenous banking system, combined with organizing and accounting skills that
were compared with the European bankers, made their centuries -1800s and half of 1900s-
full of money. Frugal, spiritual and simple chettiars found their way in the development
areas of Burma, Malaysia, Singapore and Ceylon, out of which, Burma was their important
head quarters for banking operations in the past century.
The Business Practices and the kinship network is the base of their success story and
that was studied thoroughly in this research work. The intra-Society of chettiars, which
forms a vital part of their business, is perceived under various factors that influenced their
business. The Economical, Political and Socio-cultural perspectives are brought out in the
broad sense of business.
The wealth gained by the industrial giants from this community is duly given back to
the society in various forms. The study also appraises the role of Nattukottai Chettiars in
development of the state in the areas like Education, Health Care and Spirituality. The
study tries to relate the Business Values of these groups with the community values, family
values, cultural values and historical values.
As an outlook, the research work tries to revisit the success story of a clan and kinship
network and tries to understand the mistakes that caused their fall under different
perspectives. This work is a qualitative study, using case study method.
ii
1 Introduction
1.1 Business Communities of India
The Indian Society is special and unique for its diversified ethnic groups with
various complexions, religions, languages and culture. Caste and Communities are
indispensible in the economic strata of the country, as the centuries of practice has infused
our system with categorically classifying the people other than economic and education
status. When trying to define the term community, after a long and deep search, the
definition that suits better is “beyond the concept that people are involved in community,
there is no complete agreement as to the nature of community”1.
The economic and commercial activities of the Indian society historically have been
dominated by the influential and powerful business communities of India. The “varna”
system categorically specifies the “vaishyas” to conduct trade and business. The people
who have been in this category had grown into merchant communities. Called by various
names all over the country like “baniya2”, “Vaniyar”, “Seth”, Chetty”, “Komatti” and so
on, these business communities truly have played their part well in the area of banking and
trade. Curiously, if keenly observed, one can see the shade of same words but slightly
modified with regional accents and tones.
The major business communities3 of India are Banias, Marwaris, Khattris, Bhatias
and Parachas in the North India, Gujarathi Banias, Parsis, Sindhis in West and Chettiars
and Komatis in South India. Here we need to understand that Komatis are also Chettiars,
1
Hillery, G. A. (1955). Definitions of Community: Areas of Agreement. Rural Sociology [Serial
Online], 20 (2), 111-123.
2
“baniya” in north is equivalent to the term “Vanigar” or “vaanigar” in Tamil. It is to be noted
that “the syllable “B” and “V” are often interchanged in north and south of the country.
“vaaniya Chettiar” is a popular caste in south India
3
C.A.Bayly. (2011). Merchant Communities-Identities and Solidarities. In M. M. Kudaisya (Ed.),
The Oxford India Anthology of Business History. New Delhi, India: Oxford University Press.
1
but the wide usage of term Chettiars mentioning the “Nattukottai Chettiars” of Tamilnadu
thus differentiates the region. In India, the family business and Community business are
to be synonymously studied with the castes. Caste system is the corporate element critical
in structuring the business communities, particularly the Chettiars4.
The society’s perception towards the traditional business communities is very
complex. On one hand they were seen as parasites and usurers and on the other hand, there
is a grateful view for those business communities who carry on charity works like building
schools, choultries, ponds, lakes, hospitals and temples. In villages many people see the
traditional merchants and moneylenders community as of paternal sponsors on
economically bad times.
According to many Indian Business historians, it is evident that the Colonial Rule
encouraged the businessmen to exploit the society including poor as their only motive is to
cater to the needs of the European population. As a consequence to this long rule, the
society had an ill view on Businessmen as a whole. Merchants, let them be petty
shopkeepers or money lenders, were viewed as parasites.5 As per Dharma, they were seen
as destroyers of the society. But still, for some communities, Colonial period gave a
change, for example Nadars of Tamilnadu who were eking their livelihood as toddy tappers
found business attractive and they emerged as a highly visible business community of south
India.6
Till date, the identity of these communities mostly remains as business. However,
the occupation of the majority of these people has changed. The narrow distinction between
the community and caste is not properly defined in India and hence the noble goal of
community gets tainted with caste color. The group of people with same occupation, and
4
(C.A.Bayly, 2011, p. 99)
5
Ambirajan, S. (1991). Changing Attitude towards Business in India. In D. Tripathi (Ed.), Business
and Politics in India-A Historical Perspective (pp. 1-18). NewDelhi: Manohar Publications.
6
(Ambirajan, 1991)
2
from the same geographic location with similar food habits develops a common dressing
pattern, due to the climate of the region and availability of food, develops a common
behavior and thus forms a culture. When they marry among the group, they becomes
relatives and at one point of time this group, as a community acquires a name, mostly based
on their occupation or area.7 When a member moves out of the trading community and say
becomes a doctor, by concept, he joins the doctor’s community, called as “vaithiyar”. But,
when he is named under a certain caste, the grey area becomes darker and by generations
the community and the original purpose of forming groups disappears. This is a common
phenomenon and Chettiar community as any other business community in India is
undergoing a sea of changes and struggling to stick on to its original identity of
tradesmanship.
1.2 Importance and Influence of Business Communities in India
The modern society, may it be business, politics, Judiciary or media, the happenings
we see around us or looking at the glimpse of it in the newspapers every morning often
gives us a feeling chill and still, not knowing the righteousness of the path we are moving
into. All the incidents, developments – good or bad –when deeply dug, often end up in the
alley of business and are interconnected directly or indirectly to industries. We are never
away from business houses. Society and business are interdependent, and in the right sense
business is for society and it is not vice versa.
Unfortunately, Indian economy and society are deep rooted with the concepts of
community. The age old varna system created a separate class called “Vysyas” who were
assigned to do the trade. The communities that have carried trade as tradition for long time
are usually called as Business Communities.
7
Vasudev, S. J. (2013, April 15). The Four Tiers of the Indian Caste System. Retrieved March 10,
2016, from Isha Blog: http://isha.sadhguru.org/blog/
3
From the day one, seen as people who are concerned with profits, the vaisyas have
not commended much respect in the literatures or scriptures. Manu Dharma quotes
businessmen as “deceivers in open day light” and compared them with “Sudras”. This
image of business communities are centuries old and stayed. Although side by side the
image of charities and donations by business communities are also accepted by the society,
the thought of “charities and donations” too come from the excess or overrated profit made
by them lingers in the minds of common people.
The Indian Business scenario had seen relatively very few business communities
dominating the whole economical platform, given with such a diversified class and
community systems for one big country. The major players Tatas from Parsis and the Birlas
from Marwaris are still referred to as the synonym for being rich in rural India.
What we see as the influence they veil in politics and the administration of the
nation is only the tip of the ice berg. Right from the days of Swadeshi kings to Moguls,
then British to Ghandhi and congress, the dominant business communities were close to
the ruling throne and enjoyed preferences and privileges more than the common soldiers
or farmers. Being under the patrons of kingdoms for hundreds of years, the loyalty towards
the throne has become a part of their tradition. But, the healthy survival of their business
is put up front even before the loyalty.
1.3 Introduction to Nattukottai Chettiars
Commonly called as Chettiars, this unusual community of South India, hails from
the interiors of Tamilnadu. The land they come from is called as “Chettinadu” –meaning
“the land of chettys”. With a rich heritage and much richer history, this community has
seen many facets of ups and downs. They are mostly mentioned as “Nagarathars”, by them,
meaning those who are from “Nagarams” – towns.
Chetty is the term commonly used for the vaisya caste in south India similar to the
Banias in North India. The term ‘ar” is added to “Chetty” to mark respect, as the term “ar”
means “elder brother” in tamil. It is a common phenomenon in tamil nadu with many other
castes like the “mudali” (which means the first person or leader) called as “mudaliar”. This
change is relatively recent from around 1920s, and the documents prior to this period
4
mention them as “Chetty”. The literatures during this change in term mention chettiars as
“chettyars” with a “ y” instead of “I” as it is used now. For the comfortability of spelling
and pronouncing, later slowly the terminology got changed to “Chettiars”.
When “Chetty” is considered as a caste in the Indian social system, what makes
some of these castes based business groups still called as communities by the historians
and sociologists? When this curious question lingered in the front row of the research
questions, the following definition seems fit to be an answer: “Community is an
aggregation of individuals belonging to a definite geographical area and bound together by
certain degree of cultural and economic interdependency”.8 According to this definition,
the Chettiars to be called as community seems to be right as they have a definite
geographical boundary, strict cultural practices and a totally economical interdependency
displayed during the period 1800-1950s.
Further, the present scenario of their dispersion to various places in India and
abroad still makes them called as community as the other definition of community goes as
“functional elements generating cooperation and collaboration among the members of a
collectivity, regardless of spatial boundaries.”9 The Nagarathar Associations are found in
almost all the towns of India and major cities of the world, and their functioning of
conducting common festivals like “pillayar nonbu” at the temples most often built and
maintained by them.
1.3.1 Historical inference/ Maritime Trading
The modern research studies on historical facts are mostly based on documentary
evidence. Any fact or information on the community of chettiars are not available until the
17th century, which throws light on their salt trading activities in the interior regions of
8
Tripathi, D. (1984). Business Communities of India. NewDelhi, India: Manohar Publications.
9
(Tripathi, Business Communities of India, 1984)
5
Tamilnadu.10 They were known in the ancient period as maritime traders, settled in the
port town of Kaaviripoompattinam for many centuries. They have been in various
kingdoms even before they settled in this port town. After kaveripattinam, they have moved
to the present day settlement, chettinadu.11Maritime trading was the major occupation for
the chettiars. Money lending has become the profession for the past few centuries.12
Much noted for their sharp business acumen, frugality and simplicity, Chettiars are
as well much criticized for usury in the Colonial history. Where they claim high level of
respect in the ancient Chola period for their honesty, ethicality, charity and spirituality they
face accusations of being rigid, unethical, and greedy in the later years. They
internationalized themselves, owing to their unique set of skills of entrepreneurship,
financing and socio-cultural acumen right from the beginning.
1.3.2 Geographical Location
Chettinadu refers to the village clusters that were inhabited by the chettiars. The
number of villages and dimensions is debatable as there are various documents stating
different statistics. However, the transition in their occupation from salt traders and
maritime traders in historic period, moneylenders and indigenous bankers to industrialists
and retail traders in present day have fanned them all over the world. Hence, the
concentration of chettiars found in the chettinadu has deteriorated day by day and it is very
thin or nil in some of these villages today. What still makes these places as chettiar villages
are the annual temple ceremonies attended by the family members, the temples still
receiving huge donations and maintained by chettiars, the clan temples maintaining the
10
Rudner, D. W. (1987). Religious gifting and Inland Commerce in Seventeenth Century South
India. Journal of Asian Studies, 46 (2).
11
Thurston, E. (1909). Castes and Tribes of Southern India (Vol. V). Madras, India: Government
Press.
12
Grantham. S, M. A. (15th June 1930). Burma Provincial Banking Enquiry Commitee, 1929-30.
Rangoon: Government of India.
6
population registry and marriage registry of chettiars and the partly abandoned grand
palatial bungalows without people living in it. It is a constant struggle for those who live
in these big mansions to connect the two different points of economic statuses –once
abundantly rich in wealth and heritage and now only the crumbling heritage and nothing
else.
The chettiar legacy has that previously there were 96 villages,13 but slowly it got
reduced to 80 villages under 7 clusters namely Melapathur, Kilapathur, Mela Vattagai, Kila
Vattagai, terku Vattagai, Pathinaru Vattagai, and Neendakarai Pirivu. The list of villages
is enclosed for reference in the appendices of this thesis.
Map 1-1:Vattagais and clan temples14
13
A archival group photograph in the Kovilur Mutt museum titled as “96 villages Chettiar
Meeting”
14
Source: Rudner, (1994)
7
According to the Burma Provincial Banking Enquiry Committee Report, which was
a British India Government publication, Chettinad denotes a barren waterless region
including 58 villages of the Ramnad District of the then Madras Presidency of British India
and 20 Villages of the Pudukottai state.15
There is another count and a list of a total of 75 villages under 7 clusters16
mentioned by Rudner, with a little contradiction of names of the villages as per the old
documents. In another document, Chettinad is mentioned as the property comprising a
series of 3 clusters of total 11 villages, and network of 73 villages and 2 towns forming
clusters spread over a territory of 1500 km2 in the present districts of Sivagangai and
Pudukottai in Tamilnadu.17. The number of villages can be finalized as 75, by simple
majority of authors confirming the number.
1.3.3 Nine Temples – the Base
Chettiars basically belong to any one of the nine clan temples, all of them located
in the chettinadu area. All of these temples are “Saivaite”, God Shiva and his wife Goddess
Shakthi, as predominant deities. It is said that when they moved to the interior part of
Tamilnadu from the coastal area on the request of the Pandiya King,18 he offered them
these temples for them to get settled in his country. The temples are Ilayathakudi Temple,
Mattur Temple, Vairavan Temple, Iraniyur Temple, Pillaiyarpatti Temple, Neman Temple,
lluppaikudi Temple, Sooraikudi Temple and Velankudi Temple.
15
(Grantham. S, 15th June 1930)
16
Rudner, D. W. (1994). Caste and Capitalism in Colonial India, The Nattukottai Chettiars.
California, USA: University of California Press.
17
UNESCO, P. D. (2014, April 15). UNESCO-World Heritage Convention. Retrieved September
2, 2015, from Chettinad, Village Clusters of the Tamil Merchants:
whc.unesco.org/en/tentativelists/5920
18
Chettiar, D. C. (Ed.). (1941). Dhana Vaisiyaraagiya Nattukottai Nagarathar Charithiram.
Paaganeri, Tamilnadu: Dhanavaisiya Youth Tamil Association.
8
Chettiars have followed distinguished practices of clan temples like each of the
chettiar family, called as “Pulli” is registered in their clan temple registry. When the son of
the family gets married, the clan temple registers him as a individual “pulli”, thus
recognizing his family. The clan temple of the groom as well as the clan temple of the bride
acknowledges the marriage by sending a floral garland. The clan temples further acts as
the place of reconciliations and family conflicts settlements. A male and female belonging
to the same clan are not allowed to get married, only cross clan temple marriages are
accepted, with an exception of two temples – Iraniyur and Pillarpatti . these two temples
are treated as brother clan temples and hence, inter-clan temple between these two are not
allowed. The clan temples are well maintained with huge amounts of money donated by
the chettiars. Clan temples are one of the primary instruments of political integration for
the people of Chettinadu.19
These temples are marveled for their architecture and stone sculptures. The details
in the carving of the sculptures on the pillars of these temples are subject to wonderment
and the stone pillar tubes20 inside the temple to collect water from the top directly to the
deep ground as a water harvesting system shows the responsibility of the collective society
in an arid area.
1.3.4 Indigenous Bankers
As per the definition of Jain, “The indigenous bankers are a separate entity
intermediate in nature and scale of operation between the money-lenders and the joint-
stock bankers. They carry on all the business of a modern bank, but their scale of operation
is small, and the form of the enterprise is that of the traditional firm”21. Thus, the chettiars
19
Rudner, (1994)
20
Big pillars are holed up inside meticulously to use them as water tubes
21
L.C.Jain. (1929). Indigenous Banking in India. London, UK: Macmillan.
9
operations as money lenders during the colonial period make them the perfect indigenous
bankers.
The chettiars were the pioneers in Micro financing in Asia. What began as a
communal activity within families and between chettiar families became a phenomenal
development for this business community, extending their money-lending activity outside
the country too. Their merchant banking activities are earlier to the documentation in
western history. As the modern banking developed, the role of micro financing conducted
by the chettiars slowly diminished after 1980s. The entrepreneurs like chettiars who starts
up with smaller firms in new places and countries has to overcome the “liability of
newness” and liability of smallness, and they have done this well. 22
. Between 1896 and
1930 their total assets rose steeply from 1 to 8 hundred million rupees.23
Without going for adopting the business methods of their new business places,
without learning the language of the people they do business with, without getting
accustomed to the culture of the soil, without changing food habits or dress and without
changing religion or religious habits, (instead they built their own temples to keep up with
their rituals) chettiars have managed well in their business. Where ever they were, they
didn’t go for joint ventures or partnership with the sons of the soil of other kingdoms or
countries. Instead, they cooperated with the Kings and governments to get their business
established. This keeps their traditions intact even after 100s of years.
22
Rani Tan, W.-L. T. (2011). From Communal Entrepreneurship to International Networks: The
case of the Chettiars in Asia. The 56th International Council for Small Business. Stockholm:
ICSB World conference proceedings.
23
(Ito, S. (1966). A Note on the" Business Combine" in India- With special refernce to the
Nattukottai Chettiars. The Developing Economies, 4 (3), 367-380.)
10
1.3.5 Places of Business
The population of Chettiars was around 10,000 in 1896, and in 1921 consisted of
about 40,000 Chettiars.24 By 1930, it was 50,00025 and It was predicted to be 80,000
during 1966.26 The recent population status is not clear because there is no caste census
data available. With such a narrow area as origin, during 1850 – 1940s, their business
connections were wider. Their business areas apart from Madras presidency were in
Burma, Ceylon, the Federated Malay States, the Straits Settlements and Cochin China.
They have been overseas principally in Burma, and also in Ceylon, Malaya, Singapore and
accumulated wealth. The major countries they adventured for conducting business ventures
were
 Burma (Myanmar)
 Ceylon (Srilanka)
 Thailand
 Saigon (South Vietnam)
 Federal states of Malaya (Malaysia)
 Singapore
 Sumatra (Indonesia)
 Mauritius and
 South Africa
24
Rudner, (1987)
25
Mahadevan, R. (1976). The Origin and Growth of Entrepreneurship in the Nattukottai Chettiar
Community of Tamilnadu 1880-1930. NewDelhi, India: JNU.
26
Ito, S. (1966). A Note on the" Business Combine" in India- With special refernce to the
Nattukottai Chettiars. The Developing Economies, 4 (3), 367-380.
11
Map 1-2:Chettiar business locations (Starred)27
It is noted that there were correspondents for chettiar firms in London and also in
the continent.
1.3.6 Characteristics
Chettiars’ unique qualities and strict adherence to the community rules combined
with spirituality and simplicity made them an interesting group. What made them the most
interesting is the wealth they acquired in a short span and the business acumen they had.
To quote Thurstons’ words
“Of all the Chettiars, perhaps the most distinctive and interesting
are the Nattukottai Chettiars”28
L.C. Jain mentions them in his book “Indigenous Banking in India”, as
27
Source: (UNESCO, 2014)
28
Thurston, (1909)
12
“ they have a reputation throughout the land for their spirit of adventure and
enterprise, for their natural shrewdness and ability and for their acts of magnificence.”29
They have a tradition of mobility in seeking trade opportunities. It is widely

accepted by many of the researchers’ worldwide that Chettiars are the most enterprising
community of South India and the most mobile community too. 30 They have shown
preparedness for great austerities in pursuit of fresh business openings. The spirit of
economy and finance of Chettiars in history is a subject of wonderment. The freedom
given to the sons of the family in terms of share in the family estate, investment and
management of business and funds, cooking etc gives the man a sense of responsibility and
competition among his siblings. 31
During their thriving period in 1900s, their individualism and asceticism in

economic activity and the success hitherto was ensured by the
 peculiar joint as well as independent family system,

 Agency system in Business
 close knit community network
 Chettiar Associations
 sharp intuitive acumen for finance
 natural frugality
 great strong spirituality and
 simplicity
29
(L.C.Jain, 1929)
30
Takeshi, H. (2015). A comparison of the home remittance systems of Indian and Chinese
migrants in South East Asia: Nineteenth and twentienth centureis. In C. K. Jayathi Bhattacharya
(Ed.), Indian and Chinese Immigrant Communities: Comparitive Perspectives (pp. 58-69).
Singapore, Singapore: Anthem Press.
31
(Ito, 1966)
13
Even though they go overseas to conduct business, there are only few instances in
the historical period and colonial period that they have settled over in those countries. They
kept their roots firm in their native land. Migration was not their idea. They are very much
strong and stable in this concept and never got attracted to the charms of other countries.
As an unwritten rule, they kept their families back home, sent all their earning to
their country and made it a rule to come back to the family after earning money, which was
usually a period of 3 years. This was followed from the ancient period when they were
maritime traders. They will set sail with their articles and goods, do the trading in other
countries and come back home with huge profits as a reward for their adventure and risk
taken to go overseas in those days without mechanical boats and living at the mercy of the
seas for months together.
But, this characteristic seems to have dwindled in the post independence period and
present scenario. There is still that adventurous spirit to go abroad not to conduct business
but to be employed by other organizations. In the present day context, most of the chettiar
youngsters who are living abroad are employees in software industry and some are working
as doctors, administrators, bankers etc.
1.3.7 Family
What intrigued most of the western researchers as well as the South East Asian
researchers while studying the chettiars family system during 1800-1930s was, their
uniqueness of maintaining a certain degree of independence even though living as joint
families. Chettiar family system is a mixer of both Indian and western system.32 They lived
as undivided family like in Indian Hindu system, with parents and married brothers under
one roof. The girls of the house were sent to their husbands house, on the same day of the
32
(Ito, 1966)
14
marriage and they lived in the husbands house thereafter,. But what makes them unique is
the independence of married sons in terms of finance, cooking and family matters.
Houses were built huge to accommodate the sons and his (future) families under
one roof. The rice, money and other necessary groceries are calculated and issued to each
of the sons family in the house. If any son chooses to spend more, it is allowed but, properly
debited in to his account. During the division of assets, which occurs usually after the death
of the father, his excess debit is subtracted with interest from his share of assets. This
indicates the business conduct is not away from the families. And families were also
conducted on the lines of business.
The system slowly vanished into the big waves of modernizing India after
independence and now the chettiars are not found to practice joint family system.
1.3.8 Architecture
The Chettiar mansions and palatial houses are widely acknowledged, appreciated
and awed with wonderment all over the world for their grandeur in appearance, nuances of
art work in their grand doors of Burman teak woods, chandeliers imported from Europe,
china cutleries, Italian marbles, Aathankudi tiles, high elevation, big thinnais33, low hung
windows, courtyards that is big enough to conduct marriage ceremonies, Concrete figurines
on outer walls for decorations, balustrades, parapets, cornices, wooden carvings, stuccos
& wall paintings, huge carved columns of wood & stone, arches & porches, roofs capes
and upper storey’s with art works. What is not mentioned often is the water harvesting and
management system inbuilt in the house and the architecture which supports communal
living. The present dilapidated condition of empty chettiar mansions which are more or
less abandoned by the present day successors who live far away from the native land is
mainly due to the high maintenance cost. It is estimated that there is a loss of about 19%
33
( Thinnais are like platforms in the entrance of the house)
15
of heritage buildings, palatial houses in chettinadu.34 But, still a good number of these
architectures are surviving to showcase the uniqueness and importance of the water
harvesting and culture based building system. The houses which were so meaningful for a
joint family set up is not worthy for the community now which found its living in various
cities worldwide and living as nuclear families.
Figure 1-1:Chettinadu Palace, Kaanadukaathan
1.3.9 Chettinadu cuisine
Another important identity of Chettiars is their cuisine. No part of the world which
has NRIs is seen without a Chettinad Restaurant. The spicy and colorful Chettinad
preparations win people with food affinity easily. The facts that are important to note on
the chettiar cuisine is that, the main cooks that chettiar families employed are from other
communities like vallambar, kallar, valayar etc of the chettinadu area. Food is treated as an
important part of any ceremony and marriages and hospitality becomes an identity of
chettiars due to their lavish, intense and grand food culture.
34
(UNESCO, 2014)
16
1.3.10 Chapter Summary
This chapter is an effort to consolidate the Chettiars business and culture in a nut
shell. Even though they are identified mainly with business in the past, now the mention
of this community is associated with diversified areas. This is due to the decline in their
business and due to their vibrant socialization in the past few decades, raising the iron
curtain of their secluded life style in Chettinadu. It is mostly for the historical architecture
and cuisine they are remembered often, pushing the business achievements behind.
1.4 Review of Literature
1.4.1 Research Works on Nattukottai Chettiars
Even though there are a few numbers of studies on the Business communities of
India, it is found that the north Indian business communities earn a great prominence than
the south Indian business communities. The studies conducted so far on the south Indian
business communities are very rare and not frequent, thus missing the documentation and
data for years together. The long and rich history of entrepreneurship development of India
will not be a complete one without understanding the growth and transitions of these
business communities.
The study on Nattukottai Chettiars is not taken up in India as it deserved in terms

of business, history, heritage and culture. Very few papers are published so far, and two
studies were found relevant as a background literature for this present study. One is the
unpublished M.Phil thesis (1976, JNU) of Raman Mahadevan, acclaimed Economic
Historian, titled “The Origin and Growth of Entrepreneurship in the Nattukottai Chettiar
Community of Tamilnadu, 1880-1930”. The other one is the “Local banking and material
culture amongst the Nattukottai Chettiars of Tamil Nadu”, study by S.Sridevi, in 2005,
Centre for study of social systems, JNU. Raman Mahadevan has contributed an elaborate
study on the Chettiar Community and the overseas ventures. The time line of this study
stops at 1930, whereas Sridevi’s study focus on the social systems and the material gifting
and possession culture of the Chettiars.
17
Rudner’s anthropological study35 on chettiars throws lights on the life style and rich
heritage and history of chettiars till 1932. The long field visits and stay in India helped him
detail the important anthropological facts and information of the Nattukottai Chettiars.
Sir James George Scott(1882) in his book “The Burman – His Life and
Notions”36give us a fair description of the Chettiar money lenders role in Burma during
the end of 1800s. He compares the naïve ever care-less Burmans and the all-knowing
businessmen –the chettiar money lenders - and the ill consequences of usury. His narrative
explains the competition among the English Business men and others including the
Chettiars.
Sean Turnell (2005)37had also contributed on the role of the Chettiars in Burma in
various perceptions. He analyses the Banking and cooperative credit of Burma during
colonial era in his study and wonders whether the role of chettiars in developing Burma
into its present state is properly judged. He studies the rural credit system and effects of
Japanese occupation of Burma.
Weerasooriya has a descriptive account on his book in 1974, the Nattukottai

Chettiars banking operations in Ceylon38. Medha Kudasia tries to bring out the role of
chettiars in Singapore, and so does the authors Rani Tan and W.Tan39.
35
(Rudner, Caste and Capitalism in Colonial India, The Nattukottai Chettiars, 1994)
36
Scott, J. G. (1882). The Burman - His Life and Notions (Vol. I). London: Macmillan and Co.
37
Turnell, S. (2005). The Rise and Fall of Cooperative Credit in Colonial Burma. Macquarie
economics research papers. Sydney, N.S.W: Macquarie University, Dept. of Economics.
38
Weerasooriya, W. (1973). The Nattukottai Chettiars Merchant Bankers in Ceylon. Dehiwala,
Srilanka: Tisara Prakasakayo.
39
(Rani Tan, 2011)
18
Relatively, much earlier some studies were made on Chettiars in British India like
Chester L.Coopers study on the Chettiars. Usha Mahajani’s40 study on Malaysian
migration, Arasaratnam on Malaysian Chettiars. And K.S. Sandhu has studied the role of
chettiars as migratory people in Malaysia. Hamashita Takeshi41 in his study compares the
remittance systems of Chinese and Indian migrants in Southeast Asia, in which he tries to
bring out the home remittance system of chettiars from Malaya.
All these papers lack the overall view of chettiars including their role and
happenings in Chettinadu. They are all from outside India. It is very difficult to understand
the nuances of this peculiar community as an outsider of the culture. Further, all these
studies mostly based on the literature only. The information got from the chettiars is sure
to have only the positive sides due to community affinity.
Shoji Ito42 gives a report on Business Combines that were formed by the Chettiars
after 1930. He infers that the Business groups formed by the Chettiars are for more strong
and richer than the other counterparts of Northern India.
Apart from these studies, there are few studies that mention the chettiars and their
business practices occasionally in papers and studies that are of other dimensions.
MGG Pillai43 looked at the political tangled ties of India and Burma as a result of
the tragedy faced by the Nattukottai Chettiars in the 1960, when they were force evicted
from Burma, leaving behind enormous wealth mostly in the form of agricultural lands.
40
(Mahajani, The Role of Indian Minorities in Burma and Malaya, 1960)
41
(Takeshi, 2015)
42
(Ito, 1966)
43
Pillai, M. (1993, Feb 6). India and Myanmar: Tangled Ties. Economical and Political Weekly,
28 (6), p. 213.
19
Also he opines that India is unable to shake of her once dominating imperial presence over
there.
Jawid Laiq44 when analyzing the political, racial and economic condition of Tamils
in Malaysia in his research work on “Socio-Political study of Indian Minorities” in
Malaysia, Singapore and Ceylon, picks up a subtle bitter tone on the Nattukottai Chettiars
opining that as this “Rentier” class with huge capital reserves unwilling to take risk and set
up industries during the booming development economy of Malaysia is also one reason for
the middle class Indians to lose place in politics and society.
V.Nath45 in his article mentions that Nattukottai Chettiars owned a large proportion
of lands of Myanmar and were involved in rice and timber. He also mentions that except
one company there is no large industrial house is of Chettiar origin.
John Rogers46 in his article about the Srilankan grain riots of 1866 clearly mentions
the importance and influence of Nattukottai Chettiars in Srilanka in rice import and trading.
1.5 Research Origin
The present study was first intended on a much wider theme – Business
communities of India and their Business practices with a historical perspective. The
researcher being a south Indian, started with dominant business communities of south
India. While trying to locate literature on Chettiar community as a first step, to the
wonderment, it is found that only a handful of studies are made so far in this area. Hence,
44
Laiq, J. (1974, October 26). By-Product of a Plural Economy- A note on the politics of the Lost
Indian in Malaysia. Economic and Political Weekly, 9 (43), pp. 1825 -1828.
45
V.Nath. (2000, November 25). Entrepreneurship by Religions and Castes: A Survey. Economic
and Political Weekly , p. 4218.
46
Rogers, J. D. (1987, July). The 1866 Grain Riots in Srilanka. Comparitive Studies in Society and
History, 29 (3), pp. 495-513.
20
it was decided to study deeper the Nattukottai Chettiar community which has such a rich
history and heritage with the tradition of business still being carried out.
The major deficiency in the studies on Indian business groups based on family and
community are either they have been conducted to estimate the economic wealth, or to
criticize or praise the successful persons who built those empires. The basic foundation of
causes that created the community business to be a concept after hundreds of years is not
properly conducted.47
Further, there is no analytical study done so far in India to find out the reasons for
success or failure of these business groups with traditional community’s perspective. The
major reason for this is for want of data. There is no proper documentation done on these
business communities after major economical changes in the country like World wars,
Independence struggle and post independence period.
Hence, it seems fit to find and document the social and culturalchanges that had the
effect and influenced the growth and diversification of this community as the first priority
step for future research works.
1.6 Research Gap
It would be apt to quote Prof. Tripathi’s words here:
“… very little attention has been given to the history of Indian business. The result
is that our understanding of the nature of these communities, the process of their evolution
and their distinctive contribution to the growth of Indian business system is woefully
inadequate. If we wish to grasp the social dynamics of Indian business, this gap in
literature must be filled”.48
47
(Ito, 1966) Ito mentions with a worried tone of this part of history going undocumented
48
(Tripathi, Business Communities of India, 1984)Prof. Tripathi in his IIM-A Monograph series
points out the importance and inadequacy of literature
21
An article written by Shoji Ito in 1966 throws some light on the gap of the
documentation after 1930s. In his article he claims that regarding the industrial activities,
the process of formation of industries and the state of their business combines during
1960’s were not studied and published except for his paper in Japanese language. He also
mentions that, till 1966, there is almost no reference to the business combines of this
community.Basically the studies published on Nattukottai chettiar community can be
divided into the following three major divisions:
1. The studies that were conducted as survey based on sociology and

anthropology and was seen as a caste study
2. The Research works on rural indebtedness, agricultural credit, indigenous
banking and finance of Burma
3. The Research works on History of Banking in Colonial Period, economic
history of the countries Burma, Singapore, Malaysia and Ceylon (Srilanka)
The other kind of classification could be made as
1. Research works in India
2. Studies Outside India
3. Research works on other topics but that mentions chettiars issues
The studies on Nattukottai Chettiars are very few and moreover research works on
their business practices are too little in number given the proportion and volume of their
trade overseas.
After a thorough search and analysis of the past studies the following gaps in the
literature are found:
1. Almost all the studies stop at the timeline of 1930-40s. No extensive
research is made for their presence and role after that period. This paves way for
speculations and assumptions, many times unreal. The Chettiar business under French
colony of Saigon is almost not studied.
22
Studies on
Chettiars
Studies giving emphasis Based on location of Research works

and importance to the study mentioning
Chettiars Chettiars in
Research works smaller portions
conducted in India
Sociological/
Anthropological
Conducted outside India
Indian /Colonial
History
Banking, Rural
indebtedness,
agricultural credit
Southeast Asian Studies
Figure 1-2: Studies on Chettiars
2. Here we can notice that, as there is no proper study on the wider area of
establishments on chettiars, often there are misunderstandings, under or over
estimations on chettiar investments. No effort is seen to make a comprehensive study
on the fortunes made and the investments into industries thereafter.
3. Third, there is no comprehensive study on what happened back home in
Chettinadu, the native area, where all the wealth accumulation were duly sent to, during
those trying years for this community. The invisible drain holes were never mentioned
are looked for.
4. Being such organized and successful professional businessmen, the
strategies and crisis management efforts, if any, taken by them to handle the situation
during repatriation from Burma was not studied
5. The dilemma and delay of chettiars in turning towards the industrial and
trading world of newly formed independent India, with such a huge accumulation of
assets business knowledge and practice.
23
6. Being influential in the British India and having cordiality with the British
officials, what was their stand in the independence struggle and towards the National
Congress? The contribution towards independence struggle is not analyzed or studied
7. The reason for the tumbling down of collectivity, close knit kinship and
network of the villages and the migration of families from their native to urban areas,
leaving the palatial homes left behind unattended is not clearly studied and understood.
8. The magnanimity of altruism and the abundance of charities – Factors that
caused this behavior among the chettiars, which is still seen is not studied so far.
9. The subdivisions of Chettiars, as a caste, and the problems that rose out of
marriage alliances outside the community during the colonial era and the days after are
not studied, which is a main contributor for dilutions of the identity as business
community.
10. The loose ends in the history of their origin from Chola period are not
clarified and cleared.
Hence, the questions formed a fresh base for a new study to apprehend and
understand the missing pieces of the literature. Most importantly, the present scenario of
the chettiar community has to be understood to make the study an informative one for,
what of business communities can contribute to the entrepreneurial side of India. Here, the
business communities need not to be based on the caste, but a community can be based on
the occupation and other objectives too. The study may contribute in understanding how a
close knit community can grow and elevate the economy around them, taking chettiars
business practices as an example.
24
1.7 Research Questions
Based on the research gap the following questions were framed to make a
clear understanding to move towards the research objectives.
1. What is the historical background that they were called as maritime traders or salt
traders from the start?
2. Were the Chettiars part of Indian Social structure as Business Community or just played
a role in one of the stages of evolution of British India’s economic expeditions in
Southeast Asian countries?
3. Do they really display different practices of business to make them stand out from the
crowd?
4. What is the role of “caste” in their Business?
5. What are the major business strategies and practices that have made their indigenous
banking business a huge success during the British rule?
6. What were the accusations made on them during colonial period and were the
accusations true and justified?
7. Are the appreciations on their honesty and charity well deserved?
8. How was the community and social network maintained and used for the business
growth?
9. What were the impacts of sudden rush of huge wealth in their hometown in India and
what were the major investments / what did they did with such wealth amassed?
10. At various points of the period in their long history, what changes happened in the
social composition of this community and how they have handled/ handling it and what
are the impacts of these changes in their business life?
11. Are they still into business? Are they still called as business community and are they
willing to continue their journey with this tag of business community?
12. Is it their economic interest, competitive spirit even among siblings, religious affinity,
and search of spiritual actualization through their established “Mutts”, occupational
grouping or the social division as traders made them stick together as community till
today?
25
1.8 Need of the study
The studies on Business History are very limited. Even though the Business
communities are studied under various disciplines and perspectives like Anthropology,
Sociology, Political science, History and for their geographical location, in this stance
Southeast Asian studies, it is to be noted that in the view of economics and management it
is not even a handful. Furthermore, the studies discussed above are also conducted all by
foreigners except two instances. In those two, one had not had the chance to study the tamil
documents due to language barrier. Hence, it can be stated that for such a rich heritage
community with a rich history, it has not got its due place in research and documentation
of history.
Most of the studies stop by the chronological year of 1930, some till 1960 and
nothing further. The geographical spread, modern day developments, cultural dilutions,
Social changes and many more factors that transformed the community are not duly
studied. The present day scenario dangles with the very identity of the community –
Business entrepreneurs (?)Are the characteristics that portray the chettiars such as
 adventurous maritime traders,

 perfectly organized indigenous bankers,
 altruism/ philanthropy in abundance,
 simple living,
 confined to a small geographical area,
 spirituals to the core,
 family and business well managed together and so on,
still in vogue? This has to be found out because the entrepreneurial quality is closely
associated with their social and cultural qualities.
When noticing the present scenario, the younger generation, leaving apart the
youngsters of other communities, the very own youths of chettiar community is not aware
of the historical facts and of the communities’ rich heritage. For example, the fact that
“Rajah” sir Annamalai Chettiar is not a King of Chettinadu, but Rajah Sir is a title conferred
26
to him by the British is not known to many of the youths of this community, which was
found during the pilot survey made by the researcher. Drifted a long away from the roots,
due to lack of authenticated and serious studies to throw light on the historical facts, the
community lacks the energy to revive the spirit of entrepreneurship and our country is in
need of courageous and adventurous youth to step into entrepreneurship with innovation
and vigour to ”make in India”. The studies on this area may inspire to open up a path of
entrepreneurship instead of seeking employment as a mandatory situation. Particularly in
Tamilnadu, where the Engineering education has gained momentum and surplus supply of
engineers are finding employment opportunities abroad or unemployed, the return of the
spirit of entrepreneurship is the call of the day.
Hence, it is necessary that the gap in literature should be bridged with detailed and
systematic study on the Nattukottai Chettiar community, which may inspire and rekindle
the entrepreneurship nerves in us.
1.9 Scope of the study
The few studies made so far on this subject had been on various interdisciplinary
perspectives as mentioned in the above chapter, i:e, anthropological perspective, Sociology
perspective and Historical perspective. There seem to be no studies made so far in the field
of management focusing on the business practices of Nattukottai Chettiars and their unique
qualities and strategies in Business conduct.
Based on the pilot survey and interviews conducted in and around the Chettinadu
area, it was understood that the people contain much more undocumented information and
facts on chettiars. Further the treasure like documents, importantly in Tamil language gives
tremendous insights which solve many of the research questions like the events and
methodology of transition phase from merchant bankers to industrialists. This study would
be an honest try to stretch the historical representation of chettiar community to a further
period of globalization era.
Further, the thin line that differentiates the “caste” and Community of Indian
society is blurred beyond repair in the fast growing world of infra structural developments,
27
cultural complexions and social collaborations. In the era of Face book and twitters as
social media, the geographical boundaries of these social conventions seems to be
crumbling forever from the top, but a crucial and deep look towards the foundation is the
need of the hour to check the transitions of caste and community systems of India, as
sometimes what seems in the surface need not be true. Hence, this study tries to bring in
the interdisciplinary touch of the impacts of community and caste based business on the
societies of the independent India.
1.10 Objectives
Based on the Research questions the study is framed with the following objectives:
1. To study the Nattukottai Chettiars Business Practices from the Historical period
to the present date
2. To study and reiterate the social and cultural systems that complemented their
business, then and now
3. To understand the philanthropic and spiritual characteristics of the community
and
4. To understand the various centre points of interest and boundary of the
community at different time periods
28
1.11 Research Methods
The case study approach is selected for this study, for the great advantage of case study
helps in understanding the changes over a time period and can also be documented. For the
present study being a longitudinal research, case study method is found as themost suitable
approach. A case study strategy is a complex process. Case study method uses many types
of method to collect data. It includes documentary analysis, questionnaire methods,
observation and interviews. Hence, a wider variety of data are utilized in thisresearch study.
1.11.1 Research Strategy
a) The objective of the study is to understand, analyse and find the important events
and turning points in the century long history of the Chettiars, based on the
chronology and demography
b) The broad area of the study is Management and business practices, focus being
on the factors that affect the Business as occupation of the community.
c) The locus of the location is primarily library, field interviews and observations.
d) Qualitative data is primarily used to generalize any arguments and descriptions,
analyse and conclude on concepts and cases.
e) Procedure of the study is mainly comparison of data collected, descriptive
measures of data wherever applicable, in-depth analysis of events and
happenings, and evaluation of analysis of commentaries, policies and reports.
f) The time dimension of the study is Longitudinal as basically the present study
tends to fall under the category of Business History.
According to the definitions of originality of research by Phillip and Pugh (1994,

pp.61,62) the present study falls under:
 Bringing a new evidence to bear an old issue

 Bringing cross-disciplinary view and using different methodologies
 Looking at areas that people in the discipline haven’t looked at before.
 Adding to knowledge in a way that hasn’t previously been done before
 Using already known material but with a new interpretation
29
1.11.2 Qualitative Methods
The present study is conducted with a collection of voluminous data from various
sources mentioned below. The data thus collected were thoroughly studied, understood,
arranged chronologically and chapter wise and interpreted after analysis of various versions
and assumptions of facts and figures. The data were organized and the totality obtained
after tireless study with a holistic approach. Documentary analysis method is used for the
major part of the study.The study is also purposive and focused in nature to extract
information on the business practices and factors that affected the business practices of
chettiars. Hence, the perspective of interpretation of data was primarily business and
entrepreneurship oriented. But, the study being of interdisciplinary nature, the sociology
and anthropology perceptions are also taken into consideration.
1.11.3 Interviews
In this study, interview method is used to understand and analyse the community
members’ present mind-set on
 entrepreneurialintentions and willingness,
 their business practices,
 Heritage and heredity understanding and
 knowledge and history of the community,
The data gathered are qualitative in nature.Moreover, the field visits to the area in
and around Karaikudi, the unofficial capital of modern day Chettinadu and Singapore were
made in order to observe the present scenario of chettiar business families residing in India
and Singapore. These observations and interviews are mixedwith a tinge of anthropological
approach to the study to look into the life style of chettiars in order to corroborate the
generalizations on their natural frugality and simplicity.
1.11.4 Data Reduction
Before data analysis, data reduction method is used to screen the data for the
relevance, authentication and importance. Condensing of data is done to make the gist of
vast data obtained through secondary sources. Then transformation of empirical data was
done through several ways as mentioned below:
30
 For the data on the topic of business practices, the data were paired down as statements
similar in their core meaning.
 On the data of funds and wealth accumulation, précis of contents and comparison
method was used to reduce the data.
 Further, for social and cultural data which was really voluminous and complex with
observation data, interview data and various forms of documents as data,
phenomenological analysis was used.
 Moreover, for the other difficult part of arranging the available data in chronological
order with wider variables, Analytical categorization method is used to subsume a wide
array of data under each category.
 Again, as overall structure, key themes and categories were made according to the data
analysis, it became a cyclic procedure until a saturation point was met.
1.11.5 Coding of Data
Data coding method is followed for organizing and sectoring the data. Coding is
done on two different methods for the present study:
1. Based on the chronology (time period of the data)

2. Based on the location of the data, in the present study – India, Burma, Ceylon,
Malaya, Straight Settlements (Singapore) and Saigon.
3. Based on the activity – Business practices, social practices and altruistic activities.
Cross sectional as well as non-cross sectional methods were used to pull-in and
analyse the data. Once the coding and labeling were done, which is the most difficult part,
the un-orderly data became ordered, organized and ready to use and analyse. Then the
comparisons and connections of concepts were made, with analytical explanations and
interpretations were made.
1.11.6 Observation
The research being on the community and the behavior of a group of people,
observation method is also used for the study. Generally, field based observations include
qualitative observations, direct observations and participant observation. According to
31
Lofland (1971, p. 93), “All these terms refer to the circumstance of being in or around an
ongoing social setting”. In this research, the researcher was better able to capture the
context with direct observation. Direct observation method gives the advantage of
understanding the concepts and facts that the participants would not be willing to talk in
open or in an interview. The social gatherings such as marriages and temple festivals were
taken as fields for observation for this study.
1.11.7 Simplistic Inductivism
The researcher followed the concept of simplistic inductivism that is the research
is conducted with an open and flexible mind to allow the qualitative data analysis to take a
course on its own for constructive theories and explanations. Even though it’s a painstaking
work, the changes in research design was considered and done a few times based on the
analysis and finding of the data as the time passed by. But, at the same time, the study and
analysis was not done with a empty mind, (not having any real idea for the base).
1.11.8 Analysis and Interpretations
The data interrogations, comparisons with intuitive comments were logged as

memos in the report of interpretation of the data. This is purposefully done to make easy
understanding of the method of analysis.
1.11.9 Concept generalizations
Three ways of generalizations are used in the study:

1. Representational generalization
2. Inferential generalization
3. Theoretical generalization
Proper use of evidential data from interview as well as observations, analytical
methods and interpretations of documentary evidence has ensured the credibility of
generalizations. Wherever possible, validation and inferences were drawn based on the
evidences with great care.
32
1.11.10 Sources of data
The present study has used the two types of data –primary and secondary. Primary
data are collected through
 Interview with an open ended questionnaire.
 Field visits to the towns and villages of Chettinadu (Karaikudi,
Ponnamaravathy, Koppanapatti, Valayapatti, Tirumayam, Kovilur, and
other important temples of Chettinadu),
 field visit to Singapore, to observe the Chettiars settled there,
 observation methods on social gatherings like marriage and other functions
conducted in chettiar houses
Secondary data are collected from different locations, libraries and in digital format.
 Very old books found under the special archives in three libraries – Roja
Muthiah Library, Connemara Library and National Library, Kolkatta
 Books on Chettiars – e-sources and libraries
 Journals and articles published by Chettiars in Burma and India
 Articles in Digital format available through Library e-source
 The journals, letters and diaries of chettiars through private collections of
some chettiars
 Official Publications of British India and other Indian Government
Publications
 Newspapers and magazines
 Souvenirs issued during chettiar marriages
 Memoirs and autobiographies of some chettiars
 Advertisements of chettiar firms
 Websites of chettiar industries
 Pamphlets, Reports of Nagarathar Associations, Resolutions book
 Blogs of some Chettiars
33
1.11.11Reliability and validity of data
Since, the credibility of the data stands as evidence for the research findings and
interpretations, great care is taken to ensure the reliability and validity of the data. Only the
data which has a proper publication and authenticity were taken into account. The journals
and articles were collected with great care to assure the greater resonance with the
objectives of the study.
The interview schedules were well planned with handpicked interviewees, with
whom the basic details can be checked with background check method. Further, great care
was taken while asking questions to ensure that the interviewee understood the question
and it was also ensured that the language didn’t stand between the interviewer and the
interviewee. Moreover, the information material used in the study from any interviewee
was cross checked for relevancy.
In most cases, observation method was more useful, particularly in social
gatherings, where the discussion and gossips between the relatives were more honest and
without prejudice and bias. This was realized and understood, while the same question
asked at an interview, the interviewee gave a different answer of what she/he was saying
as in the gathering. Hence, the researcher tried to find out some of the crucial facts as a
participant in group discussionthan coming out open at an interview.
1.12 Future scope of the study
This study is an honest effort to put the missing pieces in the historical analyses of
a business community and its transitions. When most of the studies made on the
community were stopped at the year 1930 due to lack of data, and the authors openly
requesting the future authors to continue the study, the researcher tried to put in the data
available in a coherent manner. But still, the following areas are found as the scope for
future studies:
 The behavioral pattern of chettiar business men and women to confirm with the
depicted image of their frugality, simplicity and spirituality
 The migration pattern of chettiar NRIs who are spread now all over the world
34
 The Nattukottai Chettiar Associations and their operations towards the betterment of
the community
 The business areas that is spotted with chettiars concentration like Chit funds, Medial
wholesale business, Stationeries wholesalers and retailers and other major industries
 The major chettiar business groups like AMM and Rajah group and their developments
as international companies
 The CSR of Chettiar companies in relevance with the historical glimpses
1.13 Chapterisation
The Chapterisation is planned based on the research objectives.
The first chapter has three major divisions, first being introduction to the topic and
its concepts, focusing on the introduction to various concepts like Business communities
on India, then moves on to the introduction to the Nattukottai chettiar community in general
briefing their roots in ancient India, their occupation, movement from one place to other,
their tradition and culture. Second division is a brief review on the past literatures and the
third division is dedicated to the research methods followed in this study in detail.
The second chapter is the major analytical area of the study which comprises of
chronological arrangements with further sub-division based on geographical locations and
countries focusing on the business practices of chettiars. For easy understanding and
processing, the chronology is divided into four major periods namely, ancient period,
colonial period, after independence and present scenario.
The third chapter is dedicated to the Places of Chettiar Business, the important
Southeast Asian Countries of their business. Burma, Ceylon, Malaya, Singapore and
Saigon were taken for study and a detailed description of the historical incidents were
presented with proper logical pattern.
The fourth chapter brings out the perspectives part of the thesis. Economical,
Social, Cultural and political perspectives are presented in this chapter. Their philanthropy
is studied under social perspective and spirituality under the Cultural perspective. This
chapter brings out other dimensions of the Chettiars and their business.
35
The fifth chapter brings out the points for discussion throughout the study chapter
wise. The points were discussed according to the past literature with the present scenario
and analyzed. The generalizations are made on this discussion and conclusions are arrived
at based on the generalizations
36
2 Business Practices
2.1 Introduction
Chettiars has sculpted a deep mark in the indigenous banking history of British India
as well as the provinces of the then British India like Malaya, Singapore and Burma. Often
in the literature, the Nattukottai Chettiars organization, cooperation and business methods
are mentioned as a remarkable one like European Merchants49.Their business skills, book
keeping methods, adventurous business establishments in the places of unexploited
opportunities, coordination among the kinship, cooperation with the Government and the
locals, risk taking – even to the extreme of losing life, holding on to their faith in remote
places, charity and spirituality as the backbone of their business and any other thing that
was the day-to-day practice are studied in this chapter. Arranged in the chronological order,
and geographical divisions inside, this chapter tries to bring out the differences and
similarities between the past and present in the long journey of business conduct of the
chettiars.
The previous studies on the business practices of the Nattukottai chettiars were mostly
done on the time period between 1850-1930, due to the availability of data in the form of
government documents and research studies conducted mainly by the authors outside the
country. The other reason for the particular time period is that that was the glorious wealth
acquiring years of the chettiars. Due to the non-nativity of the authors and the not-so-
extroverts chettiars who are unlikely to open up their business details unless the detailsare
on the good side of their business practices, the studies has a monotonous tone of the fixing
up of interest rate and using the temples as a meeting place. The intricacies of the business
and the native intelligence of the chettiars were not much focused. Hence, this chapter tries
49
Press.
37
to look on the things that were often missed while studying the business (ad)ventures of
Chettiars.
2.2 Trading – Historical inferences &Overview
According to the legendary stories on the historyof the chettiars, they immigrated
to the present location of chettinadu thousands of years ago from kaveripattinam50. The
folklores that were maintained as a part of tradition and pride of Nattukottai chettiar
community is the main source of inspiration for many of the historical entrepreneurial
adventures. The history then and again emphasize on that, the trading may have created the
gut feeling to take up on new places where the other communities of North India or even
the people around their habitation chettinadu, were not willing to go.
There are various mentions on Chettiars in the ancient literature. The culture,
tradition and the cross verification of facts infers that the Chettiars were moving from one
place to the other in Tamilnadu in groups and essentially did some kind of trading like salt,
rice, and precious gems. A common usage of aged chettiarswhen mentioning their
expeditions to Burma is “kondu vikka poradhu”, and they mention this word even today.
The meaning of this Tamil term is “(setting sail)with goods (or gems) to sell”. They use
this term for even those who went to Burma for banking business and not trade. The term
thus is not literally used, but as a usage that is used for centuries to mention the expeditions.
Thus, a curious linking of facts may throw light on the fact that, chettiars were doing
maritime business for long time and that still lingers in their language!
50
(Chettiar, 1941)This book of Nattukottai Nagarathar Charithiram claims to be written on the base
Poongondrai Velangudi Inscriptions. This was kept as a manuscript in palm leaves in one of
the Mutts of Chettiars (Thulavur Mutt). This was reviewed and re-written by VR. L. Chinnaiya
Chettiar as a small book in 1894, published by Thanjavur Subramaniya Aiyar of Devakottai
and after a longwait, published in paper with the help of Ramanathan Chettiar and Arunachalam
Chettiar in 1941. Interestingly, there is a debate on the authenticity of this book due to the non-
availability of the stone inscriptions now in the said temple. Apparently, the very famous Edgar
Thurston’s work on Chettiars mentions some of the facts from this book.
38
To add the authentic facts, Rudner mentions the following religious gifting
documentations: 11the century gifting to Chidambaram Temple, 14th and 15th century to
Tirupathi, and 17th Century to Palani temple. Palani temple’s palm-leaf documents
(manuscripts) reveal many facts about the Chettiar trade practices.51
According to the “Nattukottai Nagarathar History”, chettiars were doing the
business of precious gems in “Santhiapuri town in Naganadu”. Their mutt was called as
“Sadasiva Guru Peetam”. During Kaliyuga 204( in Tamil, 2898 BC) due to the
torture of the King, they migrated to Kanchipuram and continued their trade on Precious
stones and gems.During Kaliyuga 2312 (789 BC), again they migrated after living in
Kanchipuram for 2107 years52due to unjustified taxes and fines levied by the King Kanchi
Prataparasan.
They reached the Chola Kingdom, assured by the Chola King Manuneedhi Cholan,
allthe due respect in his country as Prime traders (Pradana Vaisiyas) along with the
prestigious honor of crowning the Kings of his lineage. This is the town of Poompuhar,
also known as Kaaviripoompattinam53. The mention of Poompuhar and the trading families
of Kannagi and Kovalan, the lead roles of Silappathigaram, a great Epic of Tamil, is often
mentioned54 by authors to show the connectivity between the Chettiars (traders) and the
town of Poompuhar. Another link we can see here is that,the once flourishing port of
51
52
Sridevi, S. (2005). Local banking and material culture amongst the Nattukottai Chettiars of Tamil
Nadu. New Delhi, India: JNU.
53
Kaviripattinam is called on a lot of names. Kaviri means the river Cauvery and pattinam is city.
It was a flourishing port town in the famous Chola dynasty. It was also called as
Kaveripattinam, kaviripoompattinum, which is a version of kaviri – puhum- pattinam –
meaning Cauvery river entering city, poompuhar etc.
54
(Sridevi, 2005)
39
Kaveripattinam was destroyed or probably submerged55 by a Tsunami56 and it is believed
that, they left kaveripattinam and settled in some interior parts of the state where there was
no sea. AsTsunami destroyed the port and their business,they built high elevated houses in
Chettinadu for the fear of Sea.57
In Kaliyuga 3775 (674 AD), due to the humiliation caused by the Chola King
Poovanthi Cholan ,the Chettiars out of sheer agony and self respect, committed group
suicide, which was more or less a genocide, leaving apart only the 1502 male members of
the community who were with the guru Atmananthasasthry in the Mutt.During Kaliyuga
3784 (683 AD), in order to crown the Chola king, the 1502 Bachelor boys had to get
married, as bachelors are not eligible to crown the King. Hence, ainter-caste marriage
arrangement was accepted with Vellala girls. After this marriage agreements, chettiars
were called as 'Upayakula Bhoopala Vaisyar', 'Ratna Dana Makuta Bhoopala Vaisyar'
and 'Chandra Gangakula Vaisyar', each denoting the group of chettiars living in a
particular street.
During this period, the flourishing Chettiars were invited by the Pandiya King
Soundarapandian in order to enrich his kingdom which was resurrecting after destruction
by war. Chola king asked one group of chettiars to go along with Pandya King, but they
refused to move without the two other groups. Hence, Chola Kingsent them all together on
assurance by the Pandiya King that the Pandiya kingdom will treat them with more respect
and all the privileges they were enjoying in the Chola country. As per assurance, Pandya
king gave the region that was West ofthe sea, North of the Vaigai River, East of Piranmalai
55
C.P.Rajendran, K. R. (2011). Geoarchaeological Evidence of a Chola Period Tsunami from an
Ancient Port at Kaveripattinam on the Southeastern coast of India. Geoarchaeology: An
International Journal .
56
Nagapattinam District. (2015). Retrieved March 26, 2016, from tn.nic.in:
http://www.nagapattinam.tn.nic.in/poombuhar.html
57
(Muthiah. S, 2000), (UNESCO, 2014)
40
mountain and Southof the Vellaru river. The King granted them the town of Ariyur
andPiranmalai temple, Sundarapattinam and its temple, and Ilayathangudivillage and its
temple. This region is the present day Chettinadu. Among the groups, the seven lineages
that settled in the Ilayathangudi area were called as Nagarathars or Nattukottai Chettiars.
They formed into nine groups and eight groups got separate temples for each group from
the King,the ninth division being the group that stayed with the Ilayanthangudi temple
itself. Thus these nine temples became clan temples of chettiars.
This is where there are contradictions that, whether the Chettiars moved to interior
of Tamilnadu on the request of the Pandiya King or because of the Tsunami in Poompuhar.
However, they thus got settled in Chettinadu, creating the arid region their place of
habitation.
Kaveripoompattinam submerged into the sea is a known history. But for Pandiya
King requesting traders to come to his country is the one in question. As a correlation to
this theory, a similar request is found in Gangai konda cholapuram inscriptions (Time
period –around 11 century AD). In the stone inscriptions of GangaiKonda cholapuram, a
proud capital of Cholas, it is found that, Paranthaga Cholan had set up a market place, like
a trade hub, for the benefit of the society and 500 tradesmen were stabilized in that market
place. (in Tamil, it is called as Nilai Thalam or pettai thalam).58 Further, tax free benefits
were also given to enable their growth. These tradesmen in that kingdom proved
themselves worthy of this gesture of the King. They constructed schools or donated lands
for schools. Festivals were conducted or sponsored by them. The tradesmen built temples
or donated gold to king for building temples.
Another interesting practice to highlight is the practice of donating oil to light lamps
in the temples. It is called in Tamil as “Vilakkerikka nei kuduthal”.These practices
58
Pandurangan, A. (1997). Kalvettukalil Chola Varalaru- Padhinoraam Nootrandu. Pondicherry
University, Tamil. Pondicherry: Pondicherry University.
41
soundvery synonymous with the Chettiar groups too, and thus helping us understand the
possibility of the “Vaisyas” treatment in the History.
The Palani temple gift deeds (Manuscripts in palm leaves) are called as
“Nagarathar Arapattayangal”,59( ) meaning the “Endowment
deeds”. These help in understanding the business practices of Chettiars during the
Seventeenth Century. It further stands as a testimony of the belief of Chettiars legend that
they had been salt traders. The manuscripts range from year 1600 to 1805.
The elaborate deeds tell us the story of the Chettiar trader from Chettinadu, who
went to Palani, a famous temple town with God Muruga as prime deity, to conduct salt
trade. Palani had a huge demand for salt and the chettiar named as Kumarappan, made the
God as a partner to his business and duly gave a share of the profit – called as “magimai ”
- in the diety’s name and the amount was used to distribute food(prasadam)60 to the needy.
Then, after he established his business well in the town, he brought some more Chettiars
to conduct the trade, all in the same methodology of setting aside a certain share of profit
to the deity as “magimai”. This practice of “magimai” was followed in the colonial business
era too.
These Historical references help us understand the long history of chettiars as
traders and have not changed their occupation even though they changed their living places,
cultures, inter-caste marriages and so on.
59
“Aram” in tamil means “Dharma” in Sanskrit and “gift” or “donation” in English. “Pattayangal”
means documents. Hence, the meaning of the term comes to “Endowment deeds”. “Aaru” in
tamil means the number six and might be because of the similarity in the pronounciation of
the two words “aram” and “aaru”, Rudner mentions these documents as “Six deeds of gift”.
Further, he elaborates that, the original manuscript of palm-leaves is not seen by him, but the
transcript published by Prof. V.Sp Manickam is the base for his notes. It seems there are six
deeds of gift mentioned in the transcript. Hence, it is a point to be clarified on the real
translation of the term “arapattayangal”, whether six deeds or endowment deeds..
60
Being “prasadam”, the food belongs to the God and first offered to him. Then in the name of
Lord Murugan, it was distributed to the priest, the chettiar himself and also others.
42
After that, the importance of chettiars was mentioned in seventeenth and eighteenth
century documents. Chettiars’ trade endeavors extended to straits in the end of eighteenth
century. They gained control of pearl fisheries in the Ceylon Straits and the Gulf of Mannar.
The control was previously with the Muslim Marakayars, who was granted this control by
theRamnad King, called as Setupathi. The control was not easily acquired by the Chettiar
traders; they had to settle monetarily the competitors like the Dutch, Raja of Thanjavur and
the Nawab of the Carnatic61. This induced Chettiars to build a close relationship with the
Rulers and Zamindars.
Figure 2-1: Chettiar Children62
2.2.1 Pattinathar
Pattinathar, a famous saint, one of the “sithars”, who has sung marvelous
philosophical hymns in Tamil is believed to be an ancestor of this trading community.
Pattinathar, born in Tiruvidaimarudhur, Thanjavur District, Tamilnadu, is popularly
known for his powerful hymns on renunciation and self realization. The history of
61
(Takeshi, 2015)
62
Source: (Thurston, 1909)
43
Pattinathar depicts the voyages undertaken by the Chettiars to the near and far away
countries to trade the materials they bought from various merchandise in the
kaveripattianam port and to sell products grown and made in their own country.It is
believed that the God Siva himself came as his adopted son to give him salvation. Even
though there are difference of opinion in the authenticity and historical proof for
mentioning him as the member of the Chettiar community, the festival called as
“Pattinathar Vizha” stands as a testimony for the adoration of the Nattukottai chettiars for
those who attains the salvation status. Nattukottai Chettiars are not very well connected
with the art forms such as music and dance. But, in this festival, they enact the life story of
Pattinathar on stage during the festival. This practice and rituals arefollowed for decades
and this gives a interesting angle to put belief that he is from this community after all. In
no other place or festival, chettiars perform like they do in this ritual. The other indication
is the location of the pattinathars salvation place – Thiruvottriur in Chennai, is still followed
as the important cremation centre for the chettiars. “Pattinathar” means the person from
town, which is synonymous to “Nagarathar” which also means people from town.
The Pattinathar tale reveals an important tactics on the maritime business of the
merchant community. The adopted son, who is the incarnation of the God Siva himself,
has brought the wealth earned abroad hidden inside the cow dung balls to safe guard the
gems from the pirates. Another revelation from this life history is the destination of the
chettiars of visiting Kasi and Rameshwaram in their old age to attain salvation, renouncing
all their wealth earned during their prime time.
2.2.2 Karaikal Ammayar
The lady saint Karaikal Ammaiyar is believed to be an ancestor of this community

by the locals living in Karaikal. She was born into a merchant community to a wealthy
44
merchant and lived in 5thcentury AD63. Karaikal is near kaviripattinam, and out of her
fervent devotion towards God Siva, she attained salvation by reaching Kailash, the abode
of the Gods, by walking her head down, in order to not to touch the God’s placewith her
feet. The location and the devotion to Saivism are two connections that give presumption
that the legendary tale may be true.
2.3 Business practices -Colonial Era
2.3.1 British India and the Indian Business
Most of the research works on Indian Business History, when mentioning Colonial
Period, speaks mostly about the Northern Part (Delhi being the political headquarters),
eastern part (Kolkatta being geographically and strategically important location for
business) and west (due to influential and rich Gujarathi and Marwari Merchants).
Southern India often goes unnoticed with all the important happenings down here. The
reasons for this ignorance may be language barrier (as Hindi is common and can be used
to in any other part of north, east and western India but not so in southern part) and the
political unimportance of South India during the Colonial Period. Further, because of the
proximity to the place of rule, as Delhi is more accessible, the other business communities
(than south Indian business people) had free access to the British and National Congress.
However, the south Indian business portfolio gained importance only with the labor
migration into the colonial settlement of other counties to develop infrastructure and
agriculture of those countries. Thishuge Diaspora and migration of Indian moneylenders,
traders and labourers from south India made the historians to at least look into this
geographical area for any study.
Essentially the Colonial Government encouraged the migration to fill in the gaps in
trading and infrastructure development sector. The huge financial needs to develop the
63
Sasivalli, S. (1984). Karaikkal Ammaiyar. Virginia, USA: International Institute of Tamil
Studies.
45
infra structure and the conversion of wet swampy forest lands of South east Asian countries
into fertile agricultural lands needed a systematic funding network. Hence, the money
lending communities were encouraged in several ways to form this network. The ever
mobile and adventurous Chettiar community fitted into this profile as if specifically
designed for this mission. It was said that the Chettiars set sail to Burma and Ceylon along
with the Colonial troopsthemselves!
The chettiars who were maritime traders for centuries, turned towards money-
lending and merchant banking in Southeast Asia only when the gates were wide opened,
particularly the opening up of the Suez Canal.64The small sized business activity which
started as rice trading, slowly converted into money lendingas the opportunity was
abundant. To elaborate, the rice trading was a big success and the demand was ever
growing. The fertile forest lands, if converted into agriculture, the rice trade and export
would extend further to the continents other than Europe. But, that conversion needed an
elaborate network of financing services. The simple Burmese sparsely spread with a thin
population did not have a great fire to work hard. Hence, British wanted labour as well as
money to be pumped into the deltas of Burma.
The British colonial rule opened the gates of many countries bringing them all
under one umbrella, making the migration and goods movements easier. For example, the
Burma became a province of British India which was now easier to reach without any
hustles. The British Government wanted a system to finance the farmers of Burma to start
converting the wet lands, forest lands into agricultural lands. The fertile area of Burma with
the river Iravaddy flowing in abundance was ripe and waiting for British and Indians to
convert it into the rice bowl of the world. The already adventurous Chettiars, who were
used to sail to faraway places found it much nearer and safer to reach these South East
Asian countries with money as commodity rather than ship full of goods and higher risks
64
Dobbin, C. (1996). Asian Entrepreneurial Minorities:Conjoint Communities in the making of the
world economy 1570 - 1940. Newyork, USA: Routledge.
46
of trading. During the Colonial rule, the conversion of Merchant communities from trade
and money lending to other Industrial opportunities was limited to the textiles and cotton
mills.65 The new trends, strategies, technologies, chances to export commercial goods, new
ideas of entrepreneurship wereall present during this period. Even though it appeared in
surface as the commercial sector of Colonial India politically loathed the British rule, they
actually were in appreciation of the business methods of English.66
The traditional mercantile communities, interested in adventuring into new areas
moved as the path lead them into new fields. Almost all the industries during that era were
controlled by the English businessmen and their companies directly or indirectly except for
the Cotton mills, which was left to Indian entrepreneurs. One or two exceptions are Tata
steering the future into steel business after a lot of struggle, Walchand Hirachand
competing with the Giant –British India Navigation. To mention some unfilled gaps in the
industry, the Bengal entrepreneurs missed the golden opportunity of capturing the empty
space in Jute Industry. Being located in the midst of the jute industry they shied out from
venturing into the challenging industry. The Chettiars, who have shown loyalty to the rulers
all along their history, didn’t shy away being middlemen to the British.Money lending and
banking was their major occupation along with other business in small volume like trading
of rice, clothes, jewels and gems etc. They even had a few Timber saw mills in
Burma.67The teak wooden door to the palatial bungalows of the chettinadu speaks of the
volume of trade and the volume of timber imported to Madras. Huge quantitative of timber
was imported every week for trade by few chettiar firms and supplied to Mysore and
65
Tripathi, D. (1991). Congress and the Industrialists (1885-1947). In D. Tripathi (Ed.), Business
and Politics in India (pp. 86-117). NewDelhi: Manohar Publications.
66
(Tripathi, 1991)
67
Medha M. Kudaisya, C.-K. N. (2009). Chinese and Indian Business: Historical Antecedents.
Boston: BRILL.
47
Hyderabad in India68. They spreadto various provinces of British India and excelled in
money lending and trade, their main occupation.
2.3.2 Business Practices
Chettiar business firms that operated during the colonial era excelled in their own
way in many modalities of operations. They created business empires with sheer business
skills, trust on kinship, organized proficiency and book keeping and insulated banking
services. To mention the level of dedication to their business, Weerasooriya quotes
Schneider. J as Follows:
“A Nattukottai Chetty is born to business and for business alone”.69
The families and their firms were interdependent and thus created a complex
network of business operations layered with various practices. The main business of
Chettiars was money lending. They avoided speculative loans and were ready to grant loans
to any business or reason with a proper security. Expected harvest or the agricultural land
provided the necessary security and that’s how the farmers became the principal clients for
the chettiar firms.
Apart from money lending, issue and discount of hundis, accepting deposits,
honouring cheques, discount usance hundis, money changing, accepting documents and
valuables for safe deposit were some of the merchant banking services provided by the
chettiars. Some chettiars were involved in conducting trade of cotton, rice, gold and gems
too.70
68
Dobbin, C. (2011). Nattukottai Chettiars - Caste and Business Organisation. In M. M.Kudaisya
(Ed.), The Oxford India Anthology of Business History (pp. 143-147). NewDelhi, India: Oxford
University Press.
69
70
48
They had very unique practices like identifying each other with their initials of
Tamil alphabets. Even though it looks as complex network, chettiars with amazing clarity
and ease understood the kinsmen by theseinitials (vilasamin Tamil) that represents the
family (usually the first letters of the fore fathers of three generations). These vilasamswere
judicially recognizedin numerous cases.71Krishna kumar while describing the chettiar
business during colonial erawrites that “Chettiars business area was like an empire built
with complex network with the families intertwined and dependent on each other still with
some defined restrictions and lines.”72
Figure 2-2: A cheque of 1910 displaying the TozhilVilasam73
Their business practice in the area of finance was more or less equal and sometimes
above the modalities of Italian financial firms.The money-lending firms as they were called
acted as commercial banks in true operational sense. The firms accepted deposits, drafted
bills and other financial instruments, lent money to peasants and other banks and their
branch offices. The chettiar business houses were based on their communal institutions,
71
(Weerasooriya, 1973, p. 82)
72
Krishna B.Kumar, J. G. (2008). From Families to Formal Contracts: An approach to
development. RAND Duke Fuqua School of Business. USA: USC Marshall School of Business.
73
The exhibit of 1910 shows the money lending firm’s name as “A.R.M.A. L Chettiar” of
Moulmein, Burma. It says that a person named Margadas is requesting to pay Rs 282 and 9
Annas to a person called “Ally”. It is a current account cheque.
49
marriage alliances, blood relations, family of descent and clan temples. In short, the entire
banking and trading during the colonial era was purely community oriented and was
concentrated and headquartered mainly in the villages of Chettinadu.
2.3.3 “Kittangi” - TheShop
A Chettiar money lending firm was a unique specimen of business model which
proven its worthiness long time ago. A firm is like a shop, called as “Kittangi” or “arai”.
More often, the “Kittangi” was a small roomofabout from 100 sq mts ina Temple building,
Choultry or a simple building. A Kittangi would have probably the Agent of the firm, who
is in-charge of running that Kittangi. Sometimes, if it is a medium level firm, then one of
the partners may be in-charge of the Kittangi. In some cases, the owner himself will take
care of the firm. It was an autonomous body, the agent having all authority and
responsibility of that particular shop.
Figure 2-3: A Kittangi
The owner who hired this agent was called as “adathi” or parent banker. The agent
was assisted by an accountant (kannaku pillai)and a boy, called as “podiyan” or “Pettiayadi
paiyyan” to do the errand works. Being a “all –male- business”, the Kittangi acted also as
a place of stay in many instances. The hierarchy of a full- fledged Kittangi would be like
this:
50
Parent Banker
(Adathi)
Chettiar Money
lender (Mudali)
Agent(Melal)
Kittangi
in-charge
Sub-Agent/
Court Clerk
Accountant
(Kirani)
(Utkadai)
Errand boy/
Accountant First Staff / Clerck Subordinate Staff
Apprentice
(Kanakku Pillai) (Mudal aal) (aduthaal)
(Podiyan)
Cashier
Figure 2-4: A Kittangi Organogram
All the other staff than the Agent, mostly were not Chettiars. The errand boys were
from chettiar families some times, but were treated as more of trainees than errand boys.
They did the works like buying stamps or getting papers stamped or buying edibles for the
staff. The day’s work started early in the Kittangis, the chettiars meeting clients till the
lunch time and took a small rest till the sun cooled down. Then they did the administrative
and account keeping works for the day.74 The evenings were spent in Temple meetings or
indoor games, as the family distraction was totally nil in the all-male life of kittangis.
74
Nataraj, M. (2014, May 2). Singapore’s first ‘venture capitalists’. Retrieved April 6, 2016, from
Asiaone: http://news.asiaone.com/news/singapore/singapores-first-venture-capitalists
51
The staff will visit the farmer’s house, checks the land and reports to the agent to
decide upon whether a loan could be granted or not. The agent will be wholly responsible
for the loans granted and keeps the securities and promissory notes under his custody. The
client once enters into the ledgers of the Chettiars, the loans thereafter will be easier and
scrutinies were less.
The Chettiar Kittangis were simple without sophisticated furniture and settings. It
was a simple hall with a mattress on the floor and all the staff would sit on the floor cross
legged, as per the custom of south India. At one point of time around 1920s, in Singapore,
there were seven kittangis on the Market Street housing about 300 to 400 chettiar money
lending firms.75The cashier and accountants had a simplewooden box like low
deskshortenough to sit on the floor and keep their ledgers on its slanting top and write. It
is called as “kai petti” meaning “handy box”. This box contains individual chambers for
cash, coins and ledgers, sometimes Jewels and pair of scales too. It opened from top and
used as writing desk when closed. A model found in the Kovilur Mutt Museum is given
below for better understanding, which is glass topped making the items inside visible.
Variations of this handy box were used in the shops.
75
Sim, M. (2013, November 17). A History of Singapore in 50 Objects. Retrieved April 6, 2016,
from The Strait Times: http://www.straitstimes.com/global
52
Figure 2-5: Kai petti76
2.3.4 Agency system
One of the most admired business practices of Nattukottai Chettiars is the system
of Agents. Agents, called as “Melal” in Tamil, coordinated the activities of individuals and
dispersed themselves to all the distant places which were feasible and reachable. The home
base of the Chettiars spread around the 75 villages in and around the then Ramnad District
acted as the headquarters. The principal investor, the owner of a chettiar firm appoints
agents to act for him. Agency arrangements were one of the root causes for the success of
chettiar banking network.
The agents usually were of two categories:
1. Chettiars and sometimes non-Chettiars who doesn’t had enough funds to start up a firm
of their own.
2. Young members of wealthy families of the community as apprentice to learn the business
before starting up a new firm.
These agents were hired by the principal investor who has enough volume of funds
to hire agents to do the business on behalf of them. The relationship between the principal
and agent is of the lender-borrower one. Once, the agent earned enough of money and
accumulated the necessary capital, he became a separatebanker and started his own firm.
More often, these new sprung bankers were supported by the previous employer chettiar,
76
Kaipetti in Kovilur Mutt Museum, Photo Courtesy: Punitha. A
53
not treating him as competitor or not showing any bitterness but playing the role of aparent
banker and utilizing the opportunity to invest further. This chain was faithfully continued,
with “trust” as the basic bond between the chettiars.
The system of agents helped chettiars to bring down the overhead charges to low
level while it encourages honesty and devotion to work by the system of payment by
results.77These agents enjoyed complete freedom in lending money. They were treated as
autonomous bodies. Apart from the salary they earned every month, it was the bonus
accumulated for three years that kept them coming back again and again to the job, till they
accumulate enough to set up their own firm. Usually the bonus came nearly to 10% of the
profit earned by them. A detailed report on the recruitment and compensation methods of
agents are discussed under the heading HR Practices in the forth coming topics.
2.3.5 Sub –Agency or “Utkadai”:
An “utkadai” ( ) in tamil means a inside shop. Utkadais’ were opened in

interior villages as outstations where the business was not big enough to run a Kittangi with
a full-fledged book-keeping. Hence, the Agent will appoint an sub-agent, of course with
the permission of the Proprietor of the firm. These shops will have the Accountant, who
often has the rights to lend money upto Rs.1000 without the agents permission to the
villagers. The book keeping will be along with the main Kittangi and all the securities and
deposits will be send to the Kittangi. Any loan request beyond Rs.1000 or request for return
of securities in a Utkadai has to be made priorly by the client for the Agent to attend to.
Normally, the Agent however will visit the utkadai every week to check the
accounts and perform any other job he has to do like sanctioning big loans or returning of
securities. As a rule the agents should have only one utkadai78, but in some instances, where
77
Pillai, A. (1929-30). The Madras Province Banking Enquiry Committee Report - Written
statement of Evidence. Madras: Government of India.
78
This restriction might have been put in place to ensure proper monitoring.
54
the staff in Kittangi is sufficient enough to maintain more, there were two or three utkadais
for big firms.
2.3.6 Capital and Deposits
About two thirds of the working capital was usually from the Proprietor of the
money lending firm and it was their own money. The remaining capital comprises mostly
(more than half) from the deposits of the Chettiars and only a small portion of working
capital is thus derived from non-chettiar sources. This was followed by almost all the firms,
including those firms that were working on the lines of western banks and also those firms
having huge working capital. The average cost of working capital in major towns like
Rangoon and Malaya were around 10% and in the districts inside was around 12%. Any
shortage of money needed for rotation for a short tem was simply managed by the firms by
taking an advance from the nearby Chettiar “Kittangi”. As the shops were usually
concentrated in one place and sometimes in one building, the errand boy will run to the
next shop to get money up to Rs. 10,000 79. This was called as “Kaimathu panam”. Usually
this will be returned on the evening of the day or the next day. No interest was charged!
Chettiars were able to secure loans from the European Banks for their working
capital. It was not easy to process loans with European banks in Colonial period, as the
discrimination between white business men and the colored were very high. The elite
chettiars were able to influence and secure loans and vouch for the firms under him. It was
the commitment on repayment that made the European banks to continue issuing loans to
the chettiars. It is interesting to understand how the chettiars were able to keep up their
commitment in repaying their loans.
79
The informant who mentioned this was very proud of the system, that at times of need, the
Chettiars had such a tremendous trust among the Kinship that even the Chettiar “Podiyan” can
transact money with a written note called “Chittai”.
55
The chettiars use the loan amounts drawn from the European banks to lend money
to the rural peasants, of course on security. In case of non-repayment of loans by the
farmers, the chettiar firm, in turn, might have faultered the payment to the European bank.
But, the Chettiar firm will draw another short term loan from other chettiar firm and repay
the loan on time. The other chettiar firm who granted to this firm, in turn, will approach
the European bank for loan and adjusted the working capital deficit. If looked at properly,
it was actually the European bank money that was paid for the loan. This insulated system
of transactions kept the chettiar capital not faltering in earning interest in at least any one
firm. To quote the exact words of the expert witness in the Ceylon Banking Commission
Report,
“ the chettiars’ through the age old practice of being their mutual lenders of last
resort were able to use loans from banks, sometimes from the same bank, to meet the
maturing bank loans. To the extent this happened, it was the banks’ own money which
enabled the chettiars to keep their loans contracts with the banks with striking
promptness.”80
A. Proprietors Capital (Mudhal Panam - )
Any Chettiar money lending firm run by an agent will receive the capital supply
from the owner of the firm. The chettiar capital is usually called as “Mudhal Panam”, and
it is the fund contributed by the principal owner of the firm. It usually constitutes about
1/6th to 1/7th of the working capital.81But, there are a lot of speculations on the finalizing
or generalizing the percentage of capital employed by the owner of the firm. According to
80
(1934). Ceylon Banking Commission Report. Colombo: Government of Ceylon.
81
(Mahadevan, The Origin and Growth of Entrepreneurship in the Nattukottai Chettiar Community
of Tamilnadu 1880-1930, 1976, p. 58)Raman mentions this from a “Confidential Note” from
the Nattukottai Chettiar Association of Burma, on the question of compensation payable to
Indians for Nationalisation of paddy lands.
56
Rudner, the proprietor generally contributed 10% to 20 % of the working capital of their
agency offices in the form of long term deposits. According to Burma Provincial Banking
Enquiry Committee Report (1930), in Burma, the “mudal panam ordinarily amounts to 1
to 2 percent of the total working capital”. Another speculation is that, the proprietor’s
capital amounted to 5 to 10 percent of the capital.82All other funds used as capital were
called under one category – “Mempanam” (meaning – other cashor surplus capitalin
Tamil). The division was made for the convenience of sharing profit and paying the agents
bonus. For calculating the agent’s triennium, the dividend on the owned capital only was
taken. For the borrowed capital or deposits from the relatives and kin, an amount of interest
was credited to the account every six months and not included in the profit, for the
convenience again, that the agent’s bonus is to be reckoned with the profit.83
B. Other Funds and Deposits (Mempanam - )
The other sources of capital used for lending is the Deposits and loans taken from
the Chettiar firmsandother loans or borrowings from other English or European Banks. But
not all the European banks lent money to the chettiar firms, or not all the chettiar firms had
the privilege of getting loan from the European banks. They were selective, and the loan
was given only to the big and influential chettiar firms in broader view, and in turn, the big
chettiar firms lent the money to the small firms and agents, thus ensuring the rotation of
money. In some instances, small chettiar firms took loan from Chinese moneylenders in
Straits and Mahadevan mentions from a confidential note that in Burma they borrowed
from the Marwari or Multani money lenders who were the competitors in the business.
Apart from these sources there were other sources too, they are as follows:
82
Sridevi, S. (2005). Local banking and material culture amongst the Nattukottai Chettiars of Tamil
Nadu. New Delhi, India: JNU.
83
57
I. Deposits from close relatives and kins (Sontha thavanai panam -
):
The deposits from the kin and close relatives come under this category. There are
various arguments on the percentage of this fund in the capital. It is around 40 to
90 percent, according to various authors, based on various geographical areas. It
was asserted that in Rangoon, Burma, during 1930’s the average of 60 to 70 percent
of capital was in this form84. According to Sridevi, who quotes N.R. Chakravarti
(1971) mentions that this amounted as high as 90 percent in some firms.85Current

rate of Interest (Nadappu vatti- )was calculated on this fund and
credited to the account every six months.
II. Deposits from other Chettiars – Clan temple-lineage and distant relatives:
(Thandumurai panam)
The deposits that were accepted from the clan-temple lineage ( Koodikira
Pangali)86 and other distant relatives are called as “thandu murai panam”. They
too carried a rate of interest.
III. Chettiar Women’s deposits (Aachimar panam - ):
It is customary of huge dowry (Sthri dhan or seedhanam) payments in cash and
kind, including gold and diamond jewels, Silver utensils and all other metal
utensils like Bronze, iron, aluminium and ceramic. Out of these, a certain amount
of cash was usually set aside in the name of the bride for her future. This fund is
84
85
(Sridevi, 2005)
86
When the clan temple –lineage is getting bigger with population, then there will be divisions
and groups, so that for important family occasions only the group will be invited. The others
are just “Pangaali” and the families of that particular group are “koodikira pangali”, meaning
“conjoining member”
58
called as “aachimar panam”87. Usually this fund gets deposited in the family’s
business – husband’s firm or father-in-law’s or sometimes father’s firm too. The
interest would be duly credited and in many instances untouched for years as there
was no need for the money for the women, as the family is usually run by the male
earning member. There were cases mentioned by the informants that, the aachimar
panam were more than the proprietor’s capital in some firms at one point of time!
IV. Loans from Parent – Bankers (Adathi Kadai panam):
Apart from the capital from the owner, if the agent is able to do more business,
usually, the Parent banker issues loan to the agent. This was usually like current
account and the agreed rate of interest will not exceed two annas above the current
rate of interest (nadappu vatti). The Burma Provincial Banking Enquiry
Committee Report mentions the method of this issuance of capital as follows:
“The capital so supplied is subject to the magamai charge of a quarter-anna per
rs.100, the amount of the outstanding at the end of one year being reckoned for
this purpose as a remittance in the next.”88
V. Temple money (Kovil panam or dharma panam):
Chettiars had a lot of temples built and also controlled many temples. The
systematic deposits of magamiinto the temple account and the donations to the
temple were not kept idle, according to the “multiplying” 89 philosophy of Chettiars.
They were taken as deposits into the business and duly the interest credited and the
temples got richer enough to maintain and renovate.
87
Chettiar women are addressed as “Aachi” irrespective of their age by all other community people
as a term of respect even today.
88
89
Chettiars still use the term “perukkuradhu” meaning multiplying and they strongly believe that
the money should be multiplied by investing in some business irrespective of the size of the
fund.
59
VI. Deposits/ Loans from European banks (Vellaikaaran panam -
):
All the other deposits from the European banks were called as “Vellaikaarna
panam” meaning “money from white men”.European banks were not ready to lend
to other money lenders like Ceylonese90 or Burmese or Chinese, but lent loans to
Chettiars. All the chettiar firms were not privileged enough to get loans from the
European banks. Only 3-4 percent91 of Chettiar bankers were able to procure loans
from European banks. In rotation, these were borrowed by the smaller firms from the
parent banker who borrowed from the European banks. In some cases, the Parent
Banker (Adathi) maintained a list of Chettiar firms for whom they vouch to the
European Banks. These Chettiars lent the money drawn as loan from the European
bank to other Chinese and Ceylonese money lenders for higher rate of interest.92 The
important point to be noted is that the European banks had not demanded any security
for short term loans to chettiars.93
On the other hand, there were many accusations on the Imperial Bank and other
banks of discriminating Indian money lenders and white business men. As only some
of the influential chettiar bankers were able to do business with them, the big chettiar
firms like Rajah SirFamily,started their own banks to compete with the European
banks. These are dealt separately in the forth coming topics.
90
(Weerasooriya, 1973)
91
92
93
(Rudner, 1994)
60
2.3.7 Loans
Money lending of Chettiars was simple and effective. The process was less
cumbersome when compared to the other money lenders from India like Marwaris and
Multanis and even remembered now for their kindness and friendship when compared to
Chinese money lenders94
TheChettiarloans were granted based on securities like the land, jewels, and
valuable items or even on the harvest to be made after a few months. Unsecured loans were
not even considered by the Chettiar money lenders.The clients of the Chettiars were the
peasants, small traders and hawkers, peddlers, other money lenders, rice merchants, cotton
merchants etc. Apart from thenormal secured loans, “Kandu Kisti”loans too were issued
to small traders for smaller amounts. These loans will be issued after deducting the interest
there off. We can say that essentially who were in need of money and had a good security
approached Chettiars for easy loans.
In Burma and Malaya, it is the rural labourers and wage labourers who borrowed
loans to meet their basic needs along with the farmers who often took loan for their farming
needs. Apart from farming needs, loans were taken for marriage occasions, throwing feasts
and for celebrating festivals. It was very common among the people that the secured loans
were provided by Chettiars on the security of farm land and whenever the farmers needed
unsecured- loans, it was to be provided by Chinese and other money lenders.
2.3.8 Interest rates on Deposits and Loans
Chettiars had a distinction between “demand deposits” and “Current account deposits”.
The Current account deposits can be increased or withdrawn as per the need of the
94
Mortalangel. (2010, February 1). An uncensored History of Malaysia. Retrieved February 3,
2016, from http://adifferentkindofmalay.blogspot.in/2010/02/uncensored-history-of-malaysia-
what-our.html
61
depositor, whereas the demand deposits cannot be increased and only can be demanded as
whole or partial by the depositor. Itis to be mentioned that the Chettiars financial
transactions were considered and categorized mainly on the basis of
 the relationship with the transacting person
 repayment time of the deposit or loan
 Conditions of the location and nature of risk involved.
Based on the above factors, the current deposits called as “nadappu kanakku”95
wereaccepted in to the shop account (“kadai kannakku”). The otherdeposits accepted from
fellow chettiars which has a fixed term of two to six months time was called as “thavanai
kanakku”. The other fixed deposits from other community people are kept under “vayan
vatti kanakku”.According to the type of the deposit, the interest was fixed and called as
“nadappuvatti”for current accounts, “thavanai vatti” for Chettiar fixed deposits and
“vayan vatti” for other deposits. “nadappu vatti” or the current account rate of interest
was taken as the base to fix the other interest rates.
Chettiar money lending firms in one particular region had a network and always
followed a common rate of interest for every month. Whether it is Burma or Malaya or
Ceylon, this practice was strictly followed. This common interest rate eliminated the
competition amongthem. In the views of clients, who were mostly ignorant farmers in this
case, this resolved the issue of finding a money lender with better interest rates. No matter
the chettiar money lender is in Rangoon or Moulmein, or in his small village, the farmer
95
“Nadappu” in Tamil means “current” or “present”. The term literally means the current account
or present rate of interest. At the same time “Nada” means “walk”. In my opinion, this
similarity in the term has made many authors like Rudner to translate “nadappu” deposit into
“walking” deposit in English. When inquired this with old informants, they confirmed that
“nadappu” is a Tamil term which is still used widely in chettinadu particularly to mention the
current year.
62
knew that the chettiar firms will have the same interest rate. This is the first and foremost
success factor for the Chettiars.
The interest rates were fixed in the temple, wherever or whichever country they had
their business. This is one reason for their interest in building their own temple. The
frequency of this interest fixing meeting was usually on monthly basis. The day would be
most probably be the sixteenth day of every month96 or an auspicious day, like
“Karthigai”97 which is an important day to worship Lord Muruga, the favorite deity of
Chettiars. The interest rates were fixed in the major business towns of chettiars like Madras,
Devakottai in Chettinadu, and Colombo for Ceylon rates, Penang for Malaya rates and in
Rangoon for Burma rates. In the monthly interest fixation meeting, the financial situation
was taken into account along with the current rates of other money lenders like Marwaris
and Gujarathis from India. Great care was taken to fix the “nadappu” rates, as the firm’s
survival was based on the interest rates.
According to Burma provincial banking Enquiry Committee Report, the

“thavanai” or fixed deposits interest was fluctuating till 1920 to attract the Chettiar
deposits, but later on from 1920 the rate was fixed in a systematic way of meeting on every
Sunday at the temple and fixing the rate of interest based on nadappu rate or sometimes
the other way. Theinterest rate in Burma was higher than in India. And so was the condition
for any other country other than India. During 1800s, in Burma the interest rates were 8,
10 or 12% and sometimes even before the end of the transaction. 98
96
97
(Sridevi, 2005)
98
63
Table 2-1: Rates of return in different countries
Country Rate of return on

capital99
India 8–9%
Ceylon 10 – 12%
Burma 12 – 15 %
Malaya 15 – 18 %
The nadappu interest ratewas always calculated as simple interest. The time period
of the loan or deposit was the base for this simple interest calculation. The interest rate on
deposit was lower than the interest rate charged for loans. The other deposits from non-
chettiars (“vayan vatti kanakku”) was calculated on simple interest too, but a little higher
than the nadappu rate, like a increase of few annas100. It was the chettiar deposits
(thavanai deposits”) that attracted higher rate of interest along with compounded interest
calculations; the frequency for compounding was six months or even sometimes two
months.
99
C.J.Baker. (1984). An Indian Rural Economy 1880-1955: The Tamilnad Country Side.
NewDelhi: Oxford University Press.
100
Annas were old age units of rupees , 1 anna = 1/16 rupee
64
Figure 2-6: Interest booklet
The above exhibit is the example for the calculation done meticulously, printed and
circulated among the chettiar businessmen. 101
Thissystem of calculating various interest rates had a fool proof agenda behind. The
“thavanai” or Chettiar fixed deposits were expensive, but gave a solid working capital for
the business, as these deposits werefixed and predictable. There was never a crisis for these
funds. Again, if we go deep further to understand how the chettiars had always surplus
funds to keep deposits on other firms and not in demand for the money, it is the basic
principle of the community – Multiplying the money. They never used the capital money
for expenditures and always kept aside a part of profit for re-investment. This yielded more
profit every compounding term and in return was yielding more interest when lent out as
loans to clients.
It is customary of Chettiars to call the bowl like plate they use to eat food as “vatti”,
which means “interest”. This is not a commonly used Tamil term in any other community
for a bowl or plate. Hence, the informants mentioned that “it is to emphasize that, when
any one says that “eat from the “vatti”(plate or bowl used to eat), that means, “earn your
profit and eat from interest earned and never touch capital investment for
101
Chetty, S. P. (1920). Vanicar Thinarasi Vattiperukkam. Malacca, Malaya. In this book, the
interest rates are calculated for days for each Tamil month. The three columns represents R for
Rupees, A for Anaas and P for paisa. It goes on for months and years based on Tamil Calender.
It looks like a ready reckoner for any kind of interest calculation.
65
expenditures”!Even though with the cheap loans and higher interest rates for deposits to
chettiar money lending firms, it was the unlimited credit opportunities open to the fellow
chettiars on any time was the practice that helped the chettiars accrue money in abundance.
2.3.9 Practice of “Magamai”
“Magamai” or “Magaimai” is a practice of allocating a small portion of profit to

a certain fund. It is like a subscription to meet certain expenditure. It is again a unique
practice of chettiar business houses. It is like a ‘tithe’, practiced in any transaction, whether
it is business or religious endowments or charity. The choultries, called as “nagara
viduthi”, which was constructed for the benefit of chettiars travelling to various places due
to usual business or for spiritual business, collected “magamai” from those who stay in the
choultry. Even those who didn’t stay, but visited the town, paid the tithe as practice, just to
make sure the money flow is continuous to maintain the choultries.
The Palani temple palm leaf documents (arapattayangal) mention the practice of
magamai, which was set apart by the Kumarappan Chettiar to the God of Palani.102
Thepractice of “magamai” is still followed in many chettiar firms and associations.

Particularly, the Chettiar Associations in various towns of Tamilnadu still collect the rent
for stay in the name of “magamai”. The previous generation is more aware of the term
“magamai” whereas, the younger generation is not so. The importance of this concept is
seen left behind in small and medium scale entrepreneurs of the community, particularly
among the “cross” or “new gen”103 chettiars.
102
Rudner, D. W. (1987). Religious gifting and Inland Commerce in Seventeenth Century South
India. Journal of Asian Studies, 46 (2).
103
The lineage that arises from inter-caste or inter- religious marriages are generally referred to as
“no.2” or “cross” chettiars by the community, and they are referred to as “original” or “asal”
(which means original in tamil) by the “cross’ sect. But, as many of them feel offensive by the
66
2.3.10 Trade language
Many of the business communities have developed their own trading language to
maintain secrecy of trade tricks. Chettiars also had a trade language based on the initials
of the gods. The small circles of chettiar traders of particular location circulate the tables
among themselves. The then Madras presidency had three tables for annas, rupees and
tens of rupees. Annas table was made on syllables of the name of the Goddess
Tiripurasundari( ), as follows:104
In the same way, the rupee table was formed with the syllables of the name of the
God of Tirukazhugukundram – Vedagiriswararthunai ( ),
meaning “with the support of God Vedagiriswarar.
With the word Tirukazhu(gu)kundram ( ) ten rupees table

was made as follows:
name given to them as “no.2”, they are referred to as “new-gen” chettiars for reference in this
thesis, wherever necessary to mention the difference between the two divisions.
104
Press.
67
Anaas and rupees were also called in other names by the chettiars in particular
locality like vanakkam for anaa, velli for rupee105.In the interest calculations book of
1920 published in Malaya, the preface mentions “Immu 30 equals one Mundiri, 320
Mundiris106equals one kasu and 100 kasuequalsone velli.”
2.3.11 Choultries (Nagara viduthi)
Chettiars’ another business practice which had a totally social dressing on it was
the building of choultries, called as “nagara viduthi” in Tamil. These choultries were built
usually by community endowments called as “kattalai” in Tamil. Run by the trust board
formed with the consent of the local chettiars, the nagara viduthis performed a lot of
assistance to this merchant community which had a lot of mobile business members. The
chettiars who are travelling to various places for the conduct of business like visiting the
“utkadai”, parent banker visiting his firms in various countries and towns, agents travelling
to collect loan amounts, chettiar families on spiritual trips to temples etc, always had a
place open for them with all the assistance they need.
The chettiar who are new to the town just had to visit the Choultry with his native
village and family name to get the entry to the warm hospitality of the chettiars who were
105
Thurston translates this mention ofrupee as velle into white, which again translates into Tamil
as Vellai, and not velli. When enquired some of the old chettiars about this mention of “white”
for rupee, they clarified that “Velli” means “one dollar or one rupee” and not white. This
practice might have came into use when the rupee was like a silver coin or dollar.
106
The exact meaning and usage of these terms were not found even after enquiring a lot of
informants. Even the aged chettiars were not not able to comprehend the terms. One informant
opined that, it might be the unique terms used for chettiar business in Malaya.
68
already doing business there. They welcomed the new member with a “commensal”
meal107and a common worship in the temple symbolically ritualizes the association and
kinship to be accorded among the community. This business morality of widening the
community business instead of getting threatened by a new entrant as competitor is one
factor that made the chettiar business flags fly high in various countries.
These choultries provided a common meeting place for the community members to
conduct business meetings and other community related meetings. These served as a centre
too to solve disputes among the members. It is found that these choultries are still
maintained in many of the temple towns in India with the same architecture and modalities
of operations.
2.3.12 Hundis (Undi, Undial - )
Hundi is a kind of bill of exchange or written order for payment. Hundi system
involves deep trust and a wide range of net works to operate successfully. Chettiars had
these both qualities – trust and network. Hence, the hundi system was widely used among
the chettiar bankers for money transfers, remittances and deposits. To draw a hundi, a
client should have an account with the chettiar banker. Hundis were also used to transfer
money from one place to another, among the chettiar money lenders. Rudner quotes that,
according to Tun Wai, more than 75% of Chettiar Hundis were trade Hundis.108 Hundis
were the major remittance system of chettiars. The Issue and discount of hundis for
remittance were the most important business for chettiars after lending.109.Takeshi, when
comparing home remittance systems of chettiars with Chinese moneylenders, mentions
that
107
(Rudner, 1994)
108
(Rudner, 1994)
109
69
“from the point of view of business institutions, remittances by
both Indians and Chinese did involve some sort of company.
Indian remittance firms – which include Chettiar banking – were
rather strong forms of institutions.”110
There were four basic types of hundis – Darisanai hundi, Nadappu hundi, thavanai
hundi and the Pay order hundi
 Darisanai Hundi or Dharshan Hundi: “darisanai” in Tamil means “on sight”.

These hundis were exactly like the demand drafts. When presented to the firm, the
hundi was payable within 3 days to the person and place specified in the hundi in
the “kadai kanakku” or shop account.
 Nadappu Hundi or Current Hundi: This type of Hundi was unique to Chettiar
bankers and among them. These hundis neither had fixed term nor demand drafts.
They were paid at the convenience of the drawee who paid the interest at the current
rate of interest to the person who drew the hundi. The interest will be calculated till
the time of encashment of the hundi.
 Thavanai Hundi or Fixed term Hundi: These were paid under the Thavani
accounts and will not be paid until the fixed term, usually short-term deposits.A
thavanaihundi can be discounted.
 Pay order Hundiswere actually receipts for the stridhan received as dowry from
the bride and the interest was compounded and treated as Thavanai deposits.
Hundis were used for transferring funds from one place to the other. Moreover, it
is the flexibility practiced by the chettiar bankers in handling the hundis gave them the
110
70
advantage among the competitors. The relationship between the clients and the chettiar
bankers were not merely of financial transactions. It went a step beyond by helping
each others in times of need. The chettiar banker converted the thavanaihundis to
Dharshanhundis if the client was in need of cash. There are confusions in confirming
the modalities of operations of these hundis, particularly the distinction between the
current hundis (nadappu) and the dharshan hundis. Rudner tries to conclude that as the
situation of issuance of hundis depend on the monetary needs of drawer and drawee on
that particular day and also on the deposits with the chettiar banker. Hence, the chettiar
bankers had the control over the model of hundi to be issued and this might be the
solution to construct a chettiar hundi system. But, under the Colonial Rule, the Hundis
were not legally acceptable and fell beyond the negotiable instruments act.111
The operation of hundi system seems simple when properly interpreted and
understood. When a Hundi is drawn with a Chettiar banker, he sends that hundi copy
to the other banker with whom the hundi is to be encashed. But, even before the hundi
reaches the banker, if the person who bears the hundi reached the banker for money,
the banker will pay for the hundi. This transfer of hundis can be done to twoor three
bankers in case of the locations being far away. To cut down the cost of commission
when the hundi gets to many bankers, the second and third banker usually did not
discount any commission, thus saving the cost of the client. This unique practice gave
the clients a trust worthy feeling on the chettiar banking operations that anywhere the
chettiar hundis will be respected in chettiar firms. Also the spread of the chettiar banks
in many places inside the country and at many placesin southeast Asia helped the
clients to transfer money irrespective of country and of worrying about whether the
bank will have a branch in that particular country.
111
71
With their keen acumen of accounting and the organized way of working made the
hundi operations possible for the chettiar bankers. With all the loop holes and
possibilities of dishonoring payments, the chettiar bankers created a bench mark of
sophistication and regulated transactions. The result of the hundi discounting system
was tremendous and the errors were very minimal. According to Krishnan (1959), for
a volume of 11 crore rupees and a number of 136 firms, the bad debts were only 4.3
lakhs, which works out 0.5% on the total volume of business.112
To summarise, Hundis played an important role among the chettiar bankers in many
ways such as
 The clients had to maintain a decent amount of deposit with the chettiar bankers to
draw Hundis.
 The networking of chettiar bankers all over the Southeast Asian countries and with
the European banks helped the clients to draw Hundis for any location.
 The bondage and trust between the chettiar bankers ensured that the chettiar firms
in even remote and interior parts of Malaya and Burma got business always.
 The service extended to the clients like, the discount is only once paid to the
drawing chettiar banker, and the banker at the destination of hundi often will not
charge a discount again, as an understanding between the chettiar networks.
112
Krishnan, V. (1959). Indigenous Banking in South India. Bombay: Bombay State Cooperative
Union.
72
Figure 2-7: ThavanaiHundi Model113
This exhibit is Thavani hundi which is for a term of sixty days and for a sum of
Rs.5000, issued by a.ka.Sitambram Chetty
Figure 2-8: Darisanai Hundi Model114
This is a Darisanaihundi, to be paid on the sight of the hundi. This is dated as

Vilambi year Thai month 5th day, also mentioned 1898. This hundi is drawn in Mandalay,
Burmafor Rs. 2000, by chettiar firm named S.A. Hundi written by another chettiar named
M.M.N. the hundi is written for a Chinese name Andai and it is also written that the hundi
113
Annamalai, P. (1988). Nagarathar Kanakkiyal Murai. Chennai: M.M.Muthiah Research Centre.
114
(Annamalai, 1988)
73
to be paid on sight. It is interesting to note that the word “on demand” is written in Tamil115.
It is also to be noted that the hundi is cancelled by writing diagonally that the amount is
paid.
2.3.13 Book keeping methods
Theaccounting methods of chettiar Bankers are commended worldwide by scholars

and authors who have studied on the banking practices of chettiars. Rudner writes with a
tinge of alarm that
‘the detailed record that they leave us of commercial activities

throughout south India and south east Asia represents a still untapped
resource for historians. But it is one that is rapidly vanishing and merits
attention before the opportunity is irrevocably lost.”
The following are the major books kept by the chettiar business men.116
1. Journal book – Asal Kurippu

2. Ledger – Peredu
3. Outstanding dues book – Paakkipustakam
4. Hundi register book – undial anuppu varavu
5. Voucher file – Kacchathu or kaisaatru book
6. Waste Book –chittai kurippu
Peredu or ledger book recorded all payments and receipts. The system of peredu
ledger had two columns of debit and credit and correlating the expenses incurred by the
account. Even though the debate of this system of bookkeeping missing the essentials of
115
(with little pronunciation error which sounds as “un demand” if read)
116
(Annamalai, 1988)
74
a western double-entry system, it is accepted that the ledger represents clearly separate
transactions and is able to show the net difference between credits and debits.117
The other type of ledger is a Pakkibook which contains the outstanding dues, debts
and deposits. But, the transaction records of payments and receipts will not be entered in
this book. The asalkurippu is the cash book which recorded all the cash transactions on a
daily basis. The Hundi register book records the type of hundi, place, names of the drawee
and drawer, amount, time period, interest rate and number. There will be four segments in
this book –First segment for the entries of hundis drawn in the firm, second for the hundis
sent from the firm to another firm, third is the entries of hundis discounted or paid from the
shop account of the firm and the fourth segment will consist of the hundis received in the
firm sent by other firms.
Voucher file book is essentially a file with “kurippu” with the collection of
vouchers and bills organized according to the transactions of the firm. In the same way all
the correspondence of the firm was also maintained in a book or file called as press copies.
If the firm is big enough and had a court clerk, then separate books were maintained for
that. The “vatti Chittai” is the slip used for calculation of interest. But, chittai or small slips
were used like memos, not only for internal use but to send to the nearby shops too.
Profit and loss account, called as laabha nashta kanakku was calculated once in a
118
year during the month of panguni or Margazhi. The Balance sheet is called as ayan
thogai or indhugai account. All the entries were made in Tamil and even the numbers
sometimes were written in Tamil. The year, month and date were also written in Tamil.
2.3.14 Human Resources Management
The human resource for all the banking business of chettiars conducted all over the
South East Asian countries were sourced from the areas in and around Chettinadu. Majority
117
(Rudner, 1994)
118
(Annamalai, 1988)
75
of the employment were reserved only for the community members. When studied
meticulously the nature of human resource recruited and the needs for them to be
essentially chettiars or Tamil for that matter, it is clearly understood that it is beyond the
caste and community affinity. The chettiars being the pure business men to the core, looks
at the importance of trust based business transactions, which is the core base of their
business. Further, the chettiars were not keen in learning of new languages in the areas of
the business too. It is for these two reasons; particularly the Tamil people were preferred
for the jobs in the money lending firms. The other reasons might be the food culture and
the worshipping in temples that stood as important criteria in selecting people for the job.
2.3.14.1 Expatriation and Repatriation models
The one practice which helped the Chettiar money lending firms sustain the flow
of human resource is the term of employment. The Agents who were essentially chettiars,
were recruited for a term of 3 years. After 3 years he will be repatriated to the chettinadu
to spend the time and money with his family, which was left behind in chettinadu during
his tenure abroad. This cooling period or resting period was the motivation for the next
three years. This eliminated the anxiety of staying faraway, as it gave a mental conditioning
that the term is limited and nearing to end day by day.
The re-expatriation of the experience agents were still more attractive as he is free
now to join any firm and can visit a new country. The other employees who were non-
chettiars too enjoyed the respect and trust of the chettiars and some authors mention the
influence of chettiars’ organizing skills, clarity of thinking, calculating skills, food and
culture, the trust worthiness and honesty were infused into the staff working with them and
their behavior changed and was similar to chettiars when they return back to home.
The expatriated chettiars were warmly received and encouraged by the chettiars
who are already in business. The accommodation and food were well taken care of for the
new entrants. The employees and the owners who shuttle back and forth to the places of
business in various countries carried the necessary things for those who were staying
abroad.
76
The peace of mind of the employees who stays away from family for three years
was too taken care of, not only by the employer but by the whole as a community. As it the
custom of the community that the male members set sail to faraway places on business, the
women took care of the family and the community took care of their safety and security.
As a close knit community living in small villages, everybody knows everyone, and the
community living was a blessing to them. Further the system of joint family ensured that
the women folk and the children are under the care of the elders.
In many cases, young boys too were sent along with adults, mostly uncles and not
often with fathers. This practice was to eliminate the concession the boy might get if the
father was with him in the training period.
2.3.14.2 Compensations, perks and packages
The Agents were well paid along with the bonus and incentives. The period of three
years is called as “kanakku” and around 1930s the salaries were ranging from Rs. 3000
toRs. 25000 119. The turnover and the experience were the deciding factors of the bonus
and other perks. Fifty percent of the salary was usually paid in advance to the family in
Chettinadu and the remaining will be paid after his term is over. The profit share was
calculated as bonus, and it was up to 12%.
2.3.14.3 Training and Human Resources Development
The important quality of the chettiar bankers was to encourage the career
developments of the employees. The training was subtle and mostly of self-learning and
through observations. However, it is also like vestibule practice as the professional and
methodological on-the-job training is carried out. The boys start with just buying snacks
and drinks to the staff working in the “kittangi”. They werecalled as “podiyans”, meaning
small boy. They have to observe and learn the happenings of business around them
119
77
occasionally running to buy Stamps, tea for customers and staff, or to stamp the papers or
to get “kai mathu” panam from the next shop. After some time, based on their ability and
performance, they may get elevated up to “melal”.The rich chettiar sons too went with this
schedule of training mostly to imbibe the humility and humbleness of being simple in their
own firm. Many of the successful chettiars have started their career as errand boys, learning
life along with business through the distinguished kittangi life. The other non-chettiar staff,
who does clerical or accountant jobs mostly remained as supporting staff, unlike the
chettiars who eventually started their own firm.
2.3.14.4 Education
In 18th century, Chettiars, being fervent saivaites from the day known to them and
others, have made it a mandatory part of their life to know and recite God Siva’s hymns of
Thevaram and Thiruvasagam. Chettiars primarily have three “Mutts” of their own namely
Patharakudi Mutt, Kila Mutt and Tulavur Mutt. The male children were sent to these mutts
for a period to get to know the basics of life and devotion. At the turn of nineteenth century,
when schools replaced gurukuls, still chettiars were not interested in sending their sons to
schools. They didn’t believe in the education of schools. They preferred practical hands-
on training than theoretical practice.
Simple teaching of math knowledge combined with the long and strict
apprenticeship training under their own caste member, who often is a relative, made them
efficient enough to start a business of their own.
But, at the turn of English rule, which imposed the new education system based on
McCauley’s methods, in the homeland, chettiars started to think their education system
only based on trade and thus not allowing their children to improve their wisdom.120 They
started comparing with the other community children who completed their education in
120
Reporter, D. R. (1930). "Burmavil nam tozhil nilamai" - Tamil. Dhanavanikan , 24. The article
emphasize that the chettiars should rethink on depriving their children of the foreign education
possibilites
78
Government schools and continued with further studies. To coincide with that, the financial
crisis during 1930s added fuel to the fire and the community had a turning point in their
thought process that the children need to study more to find other avenues of earning apart
from money lending. The importance of education was spread through various magazines
and some of the rich chettiars set examples by sending their children to America for further
studies. This paved way for transformation of schools and building up of new modern
schools in the chettinadu area. It is worth mentioning that later on, some Universities and
many colleges in Tamilnadu were built and run by Chettiars.
2.3.14.5 Agents
These agents were often clan members, from chettinadu. Wherever the chettiar firm
is located, the agents will travel overseas to stay put there and do the work as agent for
three years, He will be trained by the firm. In turn, during his last six months of three years,
he will train the new comer.
After three years of living in a faraway land, the agent returns to his homeland with
three years of leave, with whatever he earned. If willing, he can return back to the chettiar
firm after three years or else can join any other firm, in any other country.
It was a strictly followed rule, that agents should be men. Women of the community were
not permitted to travel overseas or to live with their spouse in a foreign country. The women
stayed back home, looking after the house and kids.
The system of agents helped chettiars to bring down the overhead charges to low
level while it encourages honesty and devotion to work by the system of payment by
results.121
121
(Pillai A. , 1929-30)
79
2.3.15 Other Business Ventures – Textile Industry
Even though, Nattukottai Chettiars are considered as slow transformers from

banking to manufacturing industries, in the last thirty years of British rule, along with the
prominent North Indian enterprising communities and the notable entrepreneurs like Tatas
of Parsi Community, Birla, Dalia of Marwari community, Walchand Hirachand, Ambala
Sarabhai, Kasturbhai Lalbhai of Gujrati Banias, Lala Shri Ram of Punjabi Banias, Maratha
Bhramins and Patels of Gujarat in western India, Tamil Brahmins and Nattukottai Chettiars
were the ones to be mentioned in the south as prominent entrepreneurs.122
Following the opportunity born out of the decline of colonial cotton mills in
Calcutta, these entrepreneurs found textile mills business adventurous and rewarding. As
an aftermath of the great depression in 1930, there was a wide wild area of trade and
manufacturing out there for exploitation, provided with very less competition. There was
only a handfull of Indian business communities on one side with investments and on the
other side was the unexploited new India, ready to receive freedom, andready to open the
flood gates of business opportunities. Hirachand moving into shipping, Birla’s starting up
of textile machinery, Tata’s domestic airlines andShri Ram’s sewing machines are fine
examples. Comparatively, the Nattukottai Chettiars diversification, expansion and new
ventures were very small. Around 1930s, when the Industrial sector in India started to wake
up for new avenues, the tremendous growth of textile mills, were region specific and lead
to the concentration of mills around some places. Coimbatore was one among those places
in Tamilnadu and along with chettiars, non-chettiars like R.K.Shanmugam Chettyand
122
Tomlinson, B. R. (1993). Trade & Manufacture,1860-1945:Firms, Markets & the Colonial State.
In The Economy of Modern India, 1860-1970, The New Cambridge History of India series
(Vol. 3.3, p. 143). Cambridge University Press.
80
Ratnasababathi Mudaliar were dominant and utilized the opportunity of transformation
from agriculture and money lending to industries due to great depression.123
Shoji Ito theoretically postulate the following two alternatives chettiars had when
their business collapsed in Burma and other places too, due to Great depressionand World
War II124.
1. Bringing into the running of the new enterprise the traditional individualistic spirit
of business or
2. Conversely, building up a business combine as among other communities out of a
number of blood-related nuclear families.
It is found that both the situations occur in the Independent India.
Even thougn in 1888 itself a Chettiar from Devakottai started Malabar Spinning &
Weaving Mill in Calicut, Kerala125,the expansion and new mills were not that much. Later
incontinuation, few Chettiars started textiles mills at Coimbatore,Ariyalur, and Koilpatti.
These textiles mills were floated with paid-up capitals from various professionals like
bankers and lawyers.126 Some chettiars bought the defunct mills and revived them. The
“textile King” Karumuthu Thiagarajan Chettiar started his textile journey in Madurai
during this period.
123
Mahadevan, R. (1991). The Politics of Business Interest Groups: Colonial Madras. In D.
Tripathi (Ed.), Business and Politics in India: A Historical Perspective (pp. 224-240).
NewDelhi, India: Manohar.
124
125
Al.Ar Chettiar started this mill along with a Namboothiripad family of Trivancore.
126
81
2.3.16 Other Industries
Apart from textiles mills, AL.AR Chettiar, acquired a sugar milltoo in Attur.
Mahadevan mentions this as the spirit of “entrepreneurship” of Chettiars to enter into
unknown areas like starting up a Paper Mill in Punalur by AR.AR.SM. Somasundaram
Chettiar, and a Modern Cycle Factory in Madras by SAA.Annamalai Chettiar. Also, a
considerable number of rice mills were run by the Chettiars in Tanjavur and Kumbakonam
during this period.
Few Chettiars were also involved in import of Motor Cycles & Motor Cars and
various kinds of clothes from Manchester, England and Germany. The other important
companies founded by the chettiars were the three Electric Corporations in Chettinadu,
Joint stock Companies like Palaniappa & Bros, The Madras Railway Provincial Company.
Mahadevan comments this as
“a new stage in Chettiar entrepreneurial activity, a stage

heralding modern capitalist enterprise”.127
Thus, the Chettiars, during the colonial era, gave a tough competition to the European
business men, no matter how the British Government discriminated Indian business. The
South Indian business industries owe a big chunk of gratitude to these high spirited spiritual
entrepreneurs for pioneering in many sectors. It is true that, they lost a lot of business, but
it is also true that their adventurous character took them to new heights in entrepreneurship
in colonial era.
127
For further eloborate details on the ventures of chettiars during this period, see Mahadevan,
1976. This analysis is based on Raman Mahadevan’s wonderful description on the new
ventures of Chettiars in his study “The Origin and Growth of Entreprenurship in the Nattukottai
Chettiar Community of Tamilnadu 1880-1930. There is not much documents available on this
mater. The informants are not able to recollect much and the facts that are revealed corelates
with the facts mentioned above.
82
2.4 Business –The Phase of Independence
2.4.1 The Transition
The bankruptcy of their traditional money lending business during 1930s

devastated the entire chettiar community in Burma and their lives back home in Chettinadu.
Many of the chettiars had lost their livelihood, many lost a huge fortune of investments and
many were left with nothing.
The Japanese occupation of Burma during 1942-1945 was another blow, as many
of the Chettiars had to walk all the way leaving back all their earnings, savings and
properties in Burma. The jolts caught the chettiars to act as in crisis, they “called in all their
money, suspended business and closed their books, as if by one unified decision128”. The
loss was not uniform to all the firms. Those who have invested solely in Burma lost
everything and other big firms whose investments were spread all over the South East
Asian countries escaped with their excess assets in other places. The hesitation for
transition was obvious129. The transition of chettiar firms into modern industry took time;
in fact we can say that in comparison with similar business communities like Parsis,
Marwaris or other Baniyas, they were delayed.130It is an intriguing question that lingers in
the readers and researchers minds.131To the contrary, it was the people from other
communities, those who were not often associated with business tradition, were much
128
Tinker, H. (1989). South Asia- A short History (Second ed.). London, UK: Macmillan Press.
129
(Medha M. Kudaisya, 2009)
130
Bagchi, A. K. (1972). Private Investments in India 1900-1939, The Evolution of International
Business 1800-1945 (1 ed., Vol. 5). London, UK: Cambridge University Press.
131
(Ito, 1966)
83
faster to grab the opportunity in the south, such as the Seshasayee Brothers and C.Rajan
Iyer, both belonging to Brahmin Community132.
It is to be assumed that the shock of losing business and properties overseas took
its toll on the otherwise composed mindset of Chettiars and apart from that, their
attachment to the traditional activities and their traditional outlook have “retarded their
entry into the modern industrial sector”133.
The shock wave of the loss hit hard on the chettiars back home, who were by now
accustomed to big houses and splendid spending for marriages and other ceremonies. It
became a status issue not to continue with the lavish throwing of money in marriages in
various forms like dowry, hospitality for three days, jewels and gifts to the guests. It is to
be noted that, by that time dowry was to be paid by the groom to the brides’ parents, and
not by the bride to the groom. This resulted in various cultural hinges like only the wealthy
chettiars get to marry (old widowers for second or third time) and poor bachelors were not
able to find suitable brides for want of dowry money.134It took some time for the chettiars
to understand the change and start looking for fresh starts. First to curtail the huge spending
on ceremonies, the chettiars decided on shorter and less-expensive version of traditional
practices in their clan meetings and circulated the resolutions in form of booklets to all the
members called as “Tonnutru aruvar kootta Theermanangal”135, meaning the resolutions
made by the 96 villagers. This happened in a series and an organized way, mostly
132
Tripathi, D. (2011). Towards Maturity- Indian Business in the Inter-War Years. In M. M.
Kudaisya (Ed.), The Oxford India Anthology of Business History (p. 318). New Delhi, India:
Oxford University Press.
133
(Ito, 1966)
134
A.K. (1931). Chettimarnaatu ilanchingangale, innum urakkama? (Tamil). Dhanavanikan , 7.
135
These booklets are named on the village (Ex: “Puduvayal Nagarathar Teermanangal”) or a
collection of villages (Ex: “Ezhu oor Nagarathar Teermanangal” or village and Clan tremple
specific (Ex: “Nerkuppai Nemam Kovil Nagarathar attavanai”). a collection of which were
saved by the great Roja Muthiah Chettiar in his library.
84
resolutions similar to each other. These resolutions were elaborate, mentioning minute
details of gifting, time and till to the detail of whom to be called for what kind of function.
Chettiar traditions being organized and strictly followed, this step helped in achieving a
unanimous practice of gifting and other matters of functions and ceremonies without
friction among the kin.The meticulous details and calculations of traditional gifts in these
booklets stand as a testimony to the Chettiars acute eye of nuances and a perfectionism in
documenting no matter whether it is business or relationships.
By that time, the scenario of independence struggle was changing the country
upside down in all aspects. The perception of banking, micro finance, money lending,
agriculture, zamindari system, politics, and government everything was under scrutiny and
fast changing in tune to the reforming ideas of the eager and energetic Independent India.
Hence, the transition of business from money lending to other industrial ventures
took its time for chettiars. Moreover, the big firms, who were cushioned from the loss due
to their investments elsewhere and their enormous reserves and assets, were only having
the base for new venture. But, they too due to various reasons that are discussed later in
this study took some time to step into new areas.
But, the sad part is, a lot of families lost their motivation for new venture in this
time to get out of shock and searching for new means. Hence, being simpletons, with the
money they earned abroad, they started living on the capital instead of interest against their
community’s unwritten policy. Slowly, by the start of the next generation, the wealth
eroded away, pushing the young to work for others forgetting the tradition of
entrepreneurship and risk taking.136
136
This fact was not documented properly in any study. This is arrived from discussions with a
lot of chettiar families who witnessed the erosion of asset to the last bit just to feed the family,
which was bigger by that time. The number of children in each family was more than 6,
sometimes upto 10. By this phase of time, a lot of intercaste marraiges too took place, as the
Chettiars didn’t had dowry money to find brides from their own caste.
85
As a result, the modern corporate and enterprises of chettiars were mostly founded
in 1940s.137 The capitalism of India was also expanding by this time, and as a result, the
counterparts of North India, the Marwari’s also took the same turn and started investing in
industries transforming themselves from money lending business.
Interestingly, it also should be pointed out that, even before the great depression
and World War II, during 1920s, when the other business communities were entering
vividly competing with the European companies, Chettiars were withholding their interests
in large scale industries, with a considerable investment in hand. Bhagchi points out the
reason as
“Chettiars did not enter large scale industry in significant numbers until protective
tariffs had been imposed on the import of cotton textiles and the grip of the Europeans on
the economy of the southern India had been loosened in other ways”138
The commonalities among the communities like Marwaris and Chettiars were
trading and money lending, joint family system, traditional occupation and conservative
culture. The one major difference is they were more urbanized than the Chettiars who
literally lived in villages in down south with limited exposure to the modern developments.
Whatever may be the reason, comparativelythese communities showed a keen fast pace in
switching to modern industries than chettiars.139 They took to diversified industries and
new ventures which were totally different from their traditional occupations. In fact, half
of the major players all over the country evolved in that period not belonged to any
traditional trading community. What could have become a golden opportunity was missed
137
(Ito, 1966)
138
(Bagchi, 1972)
139
(Bagchi, 1972)
86
by the Chettiars.140Chettiars entered into cotton and textile industry slowly and continued
with their banking business in some places. These cotton mills, banks and insurance
companies had certainly put them in an influential and higher position in the business arena
of south India. Apart from these, a considerable number of Chettiars started up leather
business and trade in and around the Madras Presidency.
But, we cannot miss the fact that there were a lot of failures in the transition and
formation period, and there was kind of competition between the enterprises and industries.
As the Country was trying hard to build, the traditional family enterprises, being the only
kind of business firms so far, was either trying hard to convert themselves or to give way
for the newly forming industries. Ito rightly puts it as
“..the history of the development of industry in India has also
been a history of the failures of enterprises”
In case of textile industry of Bombay, 44 economically weak companies went out
of business between 1895 and 1915. This is two thirds of the total textile business.141And
the same was the scenario for chettiar textile mills too.
The major Chettiar groups identified as venturing into new business avenues were
Somasundaram group,Karumuthu Thiagarajan Group, AMM. Murugappa Chettiar
group,Dr. Alagappa Chettiar group and The Rajah Sir Annamalai Chettiar Group, which
has a further lineage subdivision as Rajah Sir Muthiah group, M.A,Chidambaram and M.Ct
groups. These few families were the new entrepreneurial face of the Chettiar Community.
Other than banking and cotton textiles, the other industries chettiars ventured into are
plantations, fertilizers, rayon, construction, engineering, sugar mills, tannery etc. AVM
group, founded by AV Meiyappan Chettiar, successfully established a production company
in the Tamil film Industry. Chettiars with medium level investments opted for wholesale
140
Tripathi, D. (1997). Historical Roots of Industrial Entrepreneurship in India and Japan - A
Comparative Interpretation. New Delhi, India: Manohar.
141
(Ito, 1966)
87
trade business and banking services like chit funds. The next level chettiars opened up
small money lending firms in India.142
Between 1930 and 1960, the economic gap between the chettiar community
members was obvious. Most of the companies, board membership and other investments
were controlled by a very few families and the rest of the community got in a grunt of crush
between the image of a wealthy community who has to fulfill all the ceremonial customs
which required money and the reality that they lost everything overseas.
Instead of filling up, this gap got wider and wider143 as the year went by, and the
present day conditions witness this gap which is discussed in the chapter IV, under Social
perspectives.
Most of the other Chettiars, who managed to come out of the damage with little
investment, started up shops of consumer goods like stationeries, Medical shops or
departmental stores. Throughout the period of research, it is found that nochettiar is
involved in business of perishable goods. This is interesting because, as per the Community
rules mentioned in the Nagarathar Charithram144(based on the stone inscriptions of
Velangudi temple) the chettiars are prohibited from doing perishable goods business.
142
This discussion is based on the survey conducted by the researcher and the facts stated by the
informants.
143
Raman Mahadevan also mentions that this point is not brought out in most of the works on
Chettiars and he proves his point with ample data evidence from Burma.
144
“List of Community rules” reads as “In Poongonrai, Velangudi, the Caste Rules decided by the
Chettiars”. In this a rule prohibits chettiar doing business of perishable goods and butchery.
But, it may not be the sole reason for chettiars not conducting the perishable goods business,
the present generation of chettiars are not even aware of the existence of such rule book. And
apart from that, we can see that a lot of rules mentioned in the book already gone to the oblivion.
Hence, it might be the practice followed for centuries or simply the intuition of chettiars, not
88
2.4.2 Cotton and Textiles
The immediate industry that gave shelter to these new entrepreneurs was Cotton
and textiles industry. During 1963, according to a cotton mill owner of Madurai, 40 mills
with one million spindles were under the control of the chettiars, amounting to one-fifth of
the total spindlage of the four states of southern India.145These 40 mills include mills
owned by almost all the big families of Chettinadu. Rajah Sir family and Alagappa Chettiar
were to be mentioned for the development of textile industry among the chettiars, apart
from the “Textile King” Karumuthu Chettiar. During 1960s Karumuthu Thiagarajan
Chettiar group owned thirteen cotton textile companies, which amounted to sixteen mills
146
in addition to a small bank and insurance companies. The interesting fact about this
group is that unlike the Rajah Sir group the Karumuthu chettiar and his three “independent”
sons managed the group under one umbrella. Karumuthu Thiagarajan chettiar was called
as “the textile King” for that reason. When the different companies under the management
of different agents or treasurers faced financial bankruptcy, the group absorbed them and
converted into profitable units. The same way, AMM group too comprised of six nuclear
families formally separated, but jointly running the business group.
2.4.3 Banking Business
A small group of influential chettiars controlled four banks of various sizes, holding
one-fourth of the total bank deposits in southern India during this period. Rajah Sir
Annamalai Chettiar group’s possession of the two biggest banks of Madras province –
to get into the perishabel goods trade!During interviews, when this issue was pondered, many
answered that the risk taking ability of chettiars is diminished from the period of 1930s and any
business which involved risk is avoided.
145
(Ito, 1966)
146
(Ito, 1966)
89
Indian Bank and Indian Overseas bank was the major factor for the unstoppable growth of
this group in various industrial sectors.
2.4.3.1 Indian bank
In 1906 Arbuthnots, a leading European business house of Madras collapsed and

paved way for Indian merchants to utilize the opportunity to come up with a new Banking
initiative. The crashing out of three best-known British business houses including the
Arbuthnots was the worst ever financial crisis Madras has suffered. Sir George Arbuthnot,
a prominent figure and member of Madras Legislative Council was not able to hold up the
firm despite his influential white race and numerous deposits, due to his ill-planned
investments.147
The closing of Arbuthnots created a vacuum among the banking area, particularly
the English companies facing a sudden crunch in the absence of the credible firm. The
popular notion accepted by many people was that the Chettiars who are already well versed
with the merchant banking and money lending has started the Indian Bank, run by Indians
for Indians, in the perfect time of bankruptcy of Arbuthnots.148But, the initiative was by a
young lawyer named V.Krishnasami Iyer. Not one of the promoters was a Chettiar, but
they provided funding for the bank though.149
147
Building a bank, the MCt.way. (2004, April 12). The Hindu .
Sir George Arbuthnot spent the money on searching gold in the Nilgiris and Anamalais, on
investment in American railway projects, on new south African gold fields and in the plantation
crops of the West Indies. Actually, this shows the difference between the fall out of business
of Arbuthnot and chettiar firms. Chettiar firms show a controlled conduct of business with
measured risk where as the English firm shows a unplanned unmeasured risk in a large spread
geographical area. When declared insolvent, the Arbuthnot &Co’s liabilities were Rs.27
million and assets Rs. 7 million.
148
(Ito, 1966)
149
(Building a bank, the MCt.way, 2004)
90
Formation of Indian Bank in 1907 is the reflection of the differences between
European and colonial Madras’s capitalists, as a result of the rise of swadeshism.150Even
though Chettiars didn’t promote the Bank, it was clearly notified from the start that the
promoters were relying on the Chettiars for funding. The chettiars important in the
development of the bank are Rm.M.St. Chidambaram Chettiar (one of the First directors
of the Bank), S.Rm.M.Ramasamy Chettiar,who was the elder brother of Rajah Sir
Annamlai chettiar (also one of the first directors), Rajah Sir Annamalai Chettiar and PMA
Muthiah Chettiar. 151It is to be noted that Annamalai chettiar was also in the Imperial Bank
board from 1920. The Indian Bank was started with a paid-up capital of Rs. 10 lakhs in
1907 and went up to Rs.17,75,000 within one year, of which two-thirds subscribed by
chettiars. Based on the facts and figures supplied by M.S.Natarajan (1934), during 1930,
the total deposits were around Rs.1,92,56,000. The branches of Indian Bank were opened
in the later years, in all the South East Asian Countries where the Chettiar business houses
were operating.
This in turn helped the Chettiars accumulate more wealth, particularly the Rajah
Sir Group, as the control over the Bank paved way for continuous flow of funds. The bank
had the participation of both M.Ct family and Rajah Sir family till 1950. Then the Bank
was controlled by the Rajah Sir family till its nationalization in 1969.
2.4.3.2 Indian Overseas Bank
M.Ct.M.Chidambaram Chettiar, son of M.Ct. Muthiah Chettiar founded the Indian

Overseas Bank on February 10, 1937.152 His father was the nephew of Rajah Sir Annamalai
Chettiar. IOB commenced operations in Madras, Karaikudi and Rangoon simultaneously.
150
(Mahadevan, 1991)
151
152
91
In 1938 a branch was opened in Kuala Lumpur, Malaysia. In another 10 years, the bank
saw a tremendous growth and opened up branches in many of the important and capital
cities of many countries. The priority of the bank was to help the Indians overseas and help
the industrial sector of the country. IOB was nationalized in 1969.
2.4.3.3 Bank of Madura
Bank of Madura was founded in 1943 by the “Kalaithanthai” Karumuthu

Thiagarajan Chettiar. Given with his experience and stubbornness for success, the bank
grew faster and acquired goodwill and popularity. After 16 years of inception, it became a
scheduled bank in 1959.153 A principled Thiagarajan Chettiar refused to open overseas
branches even after the RBI clearance to do so.
The Bank of Madura, known for the service and efficiency of employees, merged
with ICICI bank in 2001. The 58 years old bank carved out its place for being a traditionally
focused banking strategies based on social objectives.154
2.4.4 Other challenging industries
Insurance Companies were another important area of chettiar business. The United
India Life Insurance andUnited India fire and General Insurance Company are the ventures
of Mct.M. Chidambaram Chettiar of M.Ct group and Madurai Insurance Corporation
founded by Karumuthu group are the major insurance companies to be mentioned. Im
1962, Rajah Sir Muthiah Chettiar, son of Rajah Sir Annamalai Chettiar entered into Cement
Industry by founding the Chettinadu Cement Corporation with a capital of 5.73
crores.155During 1960s the comparison between the big capitalist and their business groups
153
Thiagarajan, R. (2010). Karumuttu Thiagaraja Chettiar, the textile king. Chennai, Tamilnadu,
India: Vaanathi Pathipagam.
154
Paul, J. (2003). Bank of Madura Merger With ICICI Bank: An Analysis. IIM-Bangalore .
155
(Medha M. Kudaisya, 2009)
92
of North and South of Independent India revealed the magnitude of the enormous wealth
accumulated by the Chettiars.Interestingly the table (given below)published by Ito cites
that the monopolies of that period in cotton, banking, cement, fertilizers, jute, sugar, tea,
chemicals and many other industries were mostly North Indian big shots like Mafatlals,
Birla and Tata. 156Also, it is seen that when compared to the number of the companies of
Birla group - 335 companies in total- is a huge number when compared to the few
companies owned by each chettiar group which doesn’t exceed a dozen. But, the paid up
capital comparison shows a healthy race given by the chettiars to the northern India
counterparts –like Mahindras, Walchand and Mafatlals. Further, the North Indian business
groups had the advantage of shifting excess funds from one company to other, knowledge
sharing etc. Still, as a overall view, Shoji Ito defends the Chettiars for their magnitude of
business with smaller group. In his words,
“The Nattukottai chettiar groups share in the enjoyment of these
(being business combine) privileges. Even in purely quantitative terms their
economic power is great and they are in no way inferior when compared
with the groups of northern India.”
Table 2-2: North Indian and Nattukottai Chettiars’ Groups (Unit: 10 million Rupees)
No. of Companies Paid up Capital Net Worth Total Assets

1. The Tatas
Sole & Majority Control 57 76.07 111.81 303.6
50:50 1 0.15 0.69
29.71
Minority Control 67 47.71 88.4
2. The Birlas
50:50 1 - -
2.38
3. The Mafatlals
50:50 4 1.92 0.27 0.43
156
(Ito, 1966)
93
4. The Walchands
50:50 4 3.02 9.35
14.86
5. The Mahindras
50:50 1 0.14 0.22
0.18
Nattukottai Chettiars
1. Rajah Sir Family
i) Rajah Sir Muthiah
50:50 1 1.75 6.38 8.88
Minority Control 4 1.91 2.87 8.83
ii) M.A Chidambaram
50:50 - - - -
Minority Control 5 6.43 8.97 18
iii) M.Ct. Muthiah group
50:50 - - - -
2. AMM Group
50:50 4 3.01 5.09 8.76
3. Karumuthu Group
50:50 - - - -
Minority Control - - - -
4. Somasundaram Group
50:50 - - - -
Minority Control - - - -
(Source: (Ito, 1966), Restructured and used with license)
The major players in the chettiar community namely Rajah Sir group, Karumuthu
group and AMM group conducted their new business ventures and manufacturing
industries according to the unique tradition of independent yet joint family system and
hence the business companies were controlled under one umbrella and owned by different
sons of the family. It’s only the Rajah Sir family that operated under three different heads,
two of his sons Rajah Sir Muthiah and M.A. Chidambaram, and the third one by his nephew
94
M.Ct. Muthiah and his son M.Ct. Chidambaram Chettiar.Yetwhen the Rajah Sir group have
the clear demarcation of names owning the companies, AMM group and Karumuthu group
had the same banner for all the companies. Rm. Alagappa Chettiarcannot be called as
family group,hence, was not mentioned in the comparison table. But, his business ventures
included an array of different options like textile mills in Kerala, Insurance Companies in
Calcutta, Hotels in Bombay, Cinema theatres in Madras, a stock broking company and to
top it all up, a private airline.157
To summarise, the newer generations of Chettiar during this period proved their
business mettle after the serious setback before Independence. Many chettiars opted to stay
in the countries of their business like Malaya and Singapore. Hence, the community had a
considerable number of population split in Malaya and Singapore and a little less number
in Ceylon, Burma and Saigon. The tradition of women folk staying back faded away and
as a new leaf of social revolution many chettiars started living in other countries with
family. The chettiars so settled mostly transitioned into trading business and some seeking
employment. Fortunately, the governments of Malaya and Singapore recognised the
Indians, particularly Tamils and accepted them as rightful citizens with respect.
The Indian scenario saw chettiars settling with what they had to do as business,
profession or service. They broadened their occupational arena, struggled to adopt the
dilution of traditions and cultures, and thus flew the unique practices and close knit net
work. The spread was wider but they kept their roots strong in chettinadu by maintaining
hereditary family homes, conducting marriages in Chettinadu and getting together annually
for clan temple ceremonies.
157
Padma Bhushan Alagappa Chettiar. (2010). Retrieved 2016, from Alagappa University:
http://alagappauniversity.ac.in/quick_links/about_founder.php
95
2.5 Business – The Phase of Globalisation
In this phase of a strong India developing faster and the chettiar money lending stories
left behind as history, the community members are more split socially than ever. The close
connection between the social ties and their business conductivity is long gone. The
newergenerations are more diversified and choose business as occupation not very often.
Apart from the handful of conglomerates and Corporatesowned by the Chettiar families,
the majority of chettiars in business are mostly restricted to retail and wholesale trading of
non-perishable items. The employment generators once, are now employment seekers. The
globalization introduced glamour to the metropolitan cities and as like any other village of
India, the ever thinning chettiar population started to pour out of the villages for various
business and job options.
Women empowerment touched new heights, education and literacy level flying high,
and the diaspora almost complete with fewer chettiar families living in Chettinadu, the very
identity of Business Community dangles dangerously in front of this proud community.
The once charming palatial houses which were full with people were kept vacant and used
only during marriage and other family occasions. Taking all these changes into
consideration, An international conference was conducted in Singapore in the year 2013
(November 23 & 24) by the Nagarathar Association, Singapore, (International Business
Conference of Nagarathars 2013 (IBCN - 2013))to “Rekindle Entrepreneurship, Revive
Business networks, Reignite passion and Regain the influence”.158 The Conference had
subsequent meetings and voices around the globe among the chettiars to rethink on the
shift of being 90% of the population being entrepreneurs in 1910s and 90% being
employees in 2013.159
158
Nagarajan. (2013). IBCN 2013. Retrieved 2015
159
(Nagarajan, 2013)
96
2.5.1 Change of Practices
In the era of glamour, glitter and advertisements, the simple Chettiars in interior
Tamilnadu seems to be still simple in their business approach. The small and medium level
entrepreneurs are content and seem to be unwilling to expand or compete
vigorously.160The social stigma of not accepting the lineage of chettiars who married
women from other caste is causing confusion and diversity among the members and act as
an obstacle in cooperation among the community members. The “new gen” chettiars are
conducting business similar to the chettiars with the same spirituality, unique practices and
charity and it is very tough to find any difference until unless they reveal themselves.
There are a few cases of Chettiar Business houses that creates a mark and stands out of
the crowd like the one of Mr.Vairavan , the grandson of Dr.Alagappa
Chettiar.Mr.Vairavan, a Bio-medical Engineer, after working for around 25 years in USA,
founded Caldon Biotech in California. He is also a co-founder of AutoGenomics Inc., a
company engaged in the development of a new emerging technology of biochips.
In the case of high end business groups, the business practices are toned down to
normalcy like any other business group of India that is conducted by traditional business
community families.161In 1999, M.V.Subbaih brought in a new Corporate Governance
Structure to the Murugappa group. The individual business units were shifted to the
headship of professional managers from outside the family. The family members who were
heading these units were placed in a newly constituted Boardwhere the family members
are in a minority.162The board had three external independent directors, three executive
directors and two family members.
160
Based on the interview conducted in Karaikudi, Tiruchi and Madurai
161
Based on newspaper articles on the Changes in the Corporate Governance and Boards of
Murugappa group, Spic group and Karumuthu Group
162
P.R. Sanjai, A. R. (2014, August 19). Murugappa Group: From Burma to Parry’s Corner.
livemint -e paper .
97
The Group resolves the family issues within the family and ensures the company is free
from family conflicts. Fourth generation heading the company and grooming the fifth
generation, still the family values followed and gives the world a perfect example for the
conduct of family business. The Company sticks on to the values and trust as it was 100
years before when the community was small and intact. Changes are only welcome in the
area of management as they believe it is better to take best management personnel outside
the family and earn more returns than manage themselves and face less returns.163
The other chettiar business boundary Murugappa group crossed bravely is the
aggressive acquisition policies followed recently. In 2003, A.Vellayan, after his ascend as
chairman, acquired the Godavari fertilizers for his flagship company Coromandel
fertilizers. Coromandel paid over 50 times164 the market price for each Godavari fertilizers
share. This marks the globalization business practice change for the chettiar community,
in the past few decades in the area of risk taking. It is like the comeback of the risk taking
ability of the chettiars from olden days. The otherwise fearless sea voyagers have became
domicile and shied away from new ventures in business after the great break during the
independence, and repatriation form Burma. Murugappa’s aggressiveness is a dose of
confidence.
Previously, Tube Investments of India (TII) of Murugappa Group has launched the
green field unit to manufacture large diameter tubes at Tirutani,with a single largest
investment in the south India of Rs.250 crores.165
To summarise, the business and entrepreneurship activities are wider and shallow in
the phase of Globalisation, totally opposite to its nature of being narrow and deep during
163
Ramnath, N. (2011, November 1). A.Vellayan: As long as there is growth, there is no problem.
Forbes India .
164
(Ramnath, 2011)
165
Special Correspondent. (2014, October 29). Tube Investment’s green field project to go on
stream. The Hindu , p. 13.
98
the colonial era. The moneylenders and bankers from the small area of chettinadu are
neither identified as moneylenders nor from small villages any more. But there are from
the community who achieved bench marks in Judiciary, Banking, Politics, Medicine, and
Education and so on. Even though the awakening of reviving the identity of business
professionals is high in the past decade, the revival of unity and network is the key to
achieve a change in the outlook of this business community.
99
3 Business, Places and People
3.1 Burma (Myanmar)
3.1.1 Introduction
Burma and its transformation into rice bowlhave always been enchanting to many
researchers for its mysterious and complex tone underneath. Being a Buddhist nation, full
of friendly people, Burma has allowed people of different ethnicities to live among them
and in some cases -rule them. Colonialism, great depression, rice riots, and in this list of
problems of the Burmese, the Chettiars are also included, indispensible in the history of
Burma. Even though the contribution of chettiar money lenders was regarded high in the
development of Burma, with all their due respect, they hated the Chettiars. Often blamed
as usurers, fiery dragons and pot bellied land alienators – Chettiars found a historical
acquisition of wealth and lost more thanwealth in this mystic country.
Due to the border barriers and the rough closed nature of Military ruling Burma for
the past six decades, literature and studies on this peculiar connection between Burma and
Chettiars were not often taken. Few studies were made under the disciplines -International
Political studies, Burma Cooperative Banking system, and Migration and Diaspora of
Indians in Burma.
Chettiars started their Burma chapters around 1826, mostly with the British troops
arriving in Burma. The first chettiar firm was opened in Moulmein during 1850. It would
be apt, if we say, the opening up of Suez Canal opened up a new phase of life for the
Chettiars. That was the turning point166, as it cut down the journey time from Europe to
Asia tremendously from around 6 months to 5 weeks, thus also opening up European
Market for South East Asian rice, tin, coffee, cotton, rubber and other commodities. As
already maritime traders for centuries, Chettiars as adventurous as ever, found a thriving
166
Turnell, S. (2005). The Rise and Fall of Cooperative Credit in Colonial Burma. Macquarie
economics research papers. Sydney, N.S.W: Macquarie University, Dept. of Economics.
100
business opportunity in theneighborhood and started utilizing the chance. By the end of
19th century, a very great volume of Chettiar credit was extended to the small farmers of
Burma and chettiar money lenders became the most important factor in the agricultural
167
credit structure of Lower Burma. The strong impressions created by Indians in Burma
is still lingering in the minds of Burma, starting from the food habit to the buildings and
structures that holds Indian names are proof to this concept.168
3.1.2 Chettiars, Indiansand Burma - Impressions
The Burmeseof 1800 were simple and care-less. With a gift of earth that can
explode with fertility, they didn’t have to think and act more. They liked to gamble after a
good harvest of paddy that was sold in Rangoon, throw huge feast for marriages and they
didn’t understood the value of money and “squandered the rupees forthwith”.169
The paddy that grows in abundance in Burma attracted the English business men to
open up rice mills and export the produce to Europe. The competition and cunningness of
the businessmen, the fixing of paddy rates, the game of scandalous “paddy Morality”170
was all new to the Burmese. The entry of Chettiars as money lenders to the Burmese who
don’t think twice before spending huge money (that was often taken on loan mortgaging
the future harvest171 or the agriculture land) on gambling or marriage feast easily pulled
167
(Turnell, 2005)
168
Bhattacharya, S. (2003). Indain Diaspora in Myanmar. In M. S. Sarva Daman Singh (Ed.),
Indians Abroad (pp. 172-200). Kolkata: Hope India publications.
169
170
(Scott J. G., 1882)
171
The chettiar agent will visit the farm for the condition of sowing, the paddy quality and the
time of harvest before granting loans to the future harvest.
101
the Burmese into the ledger books of the chettiars. Scott (1882) mentions that “the
Burmese, it is to be feared, have not sufficient stability of character”.
Burma by that time was a very thinly populated country with a vast forest area,
abundance of water resources, fertile lands and unexploited other resources. The British
ruled the Irrawaddy-Sittang Valley, Arakan and a part of Upper Burma and called it
Ministerial Burma. British by this time needed a lot of Human resources and financial
resources to develop the infrastructure and convert the forest lands into agricultural
lands.The three types of Indians who went to settle in Burma are the labourers from
Andhra, service-holders in Banks and Insurance companies were Bengalis and the third
category was the richer Indians who did business like rice mills, shipping agencies. The
third category was the effect of British Empire expanding to Burma.
The entry point for Indians to enter into Burma was Rangoon. Mainly Chettiars
came to Burma to serve the British Interests.172 Other than that, there were many Indian
populated areas likeMandalay, Moulmei, Pegu, Bassein, Maymyo, Akyab etc. The 1931
census of Indian Immigration by race and sex says there were 58,823 males and 25,504
females and females per 100 males were 43.When compared to Burmese population, in
1972 Indians were 16,000 and Burmese 70,000. But in 1931 Indians were 212000 and
Burmese 128,000.173This increased population helped the Chettiars to spread faster and to
reach deeper areas and upper Burma too. And thus, the country which is very basic and not
very well economically grown was easily dominated by the migrated merchants, traders,
labourers and of course, the Chettiars from India. Indians, particularly chettiars had a
worthy life style in Burma. One example is “The Indian Residence”, whichhoused the chief
172
(Bhattacharya S. , 2003)
173
102
agent of the Imperial bank of India. The palatial house with grandeur in every aspect had
22 servant quarters and enormous grounds.174
British were keen in their expansion and by the year 1886 the upper Burma was
annexed into the Mighty British India. It was seen as a symptom of growth for both the
parties – British and Chettiars. During the second half of the nineteenth century, Chettiars
spread their operations in almost all the parts of middle and upper Burma. The Chettiars
were actually acting as the capital providers for the British when they needed it the most
to develop Burma, with a hidden agenda of opening up of more export opportunities of rice
to the other continents, thus making the British crown more wealthy. In return of favour,
Chettiars firms were allowed to transfer money to their firms through Imperial bank and
Lloyd’s bank of New York and other European banks to smoothen and widen their business
operations.
The Indo – Burmese relationship deteriorated slowly due to rice riots and inter-
religious marriages between Muslim Indians and Buddhist women, which caused a bigger
riotand unfortunately many literatures175 specifies chettiars as the reason for this twist.The
otherwise soft and accepting-anything type of Burmese Buddhist, were somehow disturbed
by these Muslim men and Buddhist women marriages and violence was resorted to. But,
Swapna Bhattacharya while discussing the Indian Diaspora in Myanmar, accuses Chettiars
as a separate category, and indicates that this group contributed to the deterioration of Indo-
Burmese relations, even though she agrees that their claim of share in the development of
Burma is legitimate. She further reiterates that they remained excluded as a class by
themselves. The reason of this exclusion was the spicy food habits, religion and language
barriers. But interestingly, the language seems not have been a major issue due to the large
174
Pillai, M. (1993, Feb 6). India and Myanmar: Tangled Ties. Economical and Political Weekly,
28 (6), p. 213.
175
103
number of people from India migrated into Burma. It is said that “to communicate in
Burma, one doesn’t need Burmese language, any Indian language or English is enough”.176
The riots shook the relationship between Indians and Burmese and the
consequences were the Burmese hatred towards Chettiars. There was always mixing up177
of cultures and the frictions there forth. The complexities of people from different races
and culture -entirely different, but put together under the political umbrella was prevailing
underneath undoubtedly. When Upper Burma was annexed in the year 1886 by British, the
Anglo-Burmese war front had a lot of Indian soldiers on British Side. This was a shock to
the Burmese who thought Indians as neighborhood brothers and the Asian brotherhood
feeling had a severe blow.
It was a pathetic situation for both the countries – India and Burma – treated as one
country in the British Colony, one sent a lot of emigrants, whose future was uncertain in
both the places. On the other hand, the chettiar community acting as middle men to the
British, dominating the agricultural credit sector of the country got in the middle, not able
to visualize the future if colonial rule comes to an end. In a big picture, it is often assumed
as the Indian merchants have exploited the Burmese peasants. But, in reality, the big
business of British utilized the poor Indians as financiers as well as labourers for their
flourishing growth.178
According to Michael Adas (1979), the transformation of the Delta areas into one
of the richest province of British Empire and the World’s largest exporter of rice was a
176
Win, K. Z. (2008). A History of the Burma Socialist party (1930-1964). New South Whales,
Australia: University of Wollongong.
177
Or we can say non-mixing up. The rigidity in adapting to the culture of the place is hindrance
to the cordial relationships with the locals.
178
104
successful experiment of major participants British, Chettiars, Chinese money lenders,
labourers, Burmese rice brokers and above all, the cultivators. Adas explains that the
British having the laissez-faire policy encouraged the Chettiars money lending which
helped in conversion of forest land into fertile land, and hence, did not safeguard the poor
peasants from the avarice of Chettiars and other Chinese money lenders.179Contrasting to
this, a recent study on the rural credit and cooperative credit systems of Burma to assess
the growth and development of the country after the British rule, wonders that “whether
Chettiars banking system might have been better than after all the microfinance reforms in
Burma”.180However, it was evident that Chettiars were financing agriculture of Burma by
the fact that their 940firms out of the 1100 firms were in the 13 main rice growing districts
of Burma.181
However, inany of the studies of relationship of chettiars with Burma, there is no

denial in the major contribution from the chettiar investors in the transformation of the rice
bowl. The following table shows the tremendous increase of paddy fields, which was
possible from the systemized chettiar money lending and spread of chettiar firms in all the
areas.
179
Adas, M. (1974). The Burma Delta: Economic Development & Social Change on an Asian Rice
Frontier 1852-1941. Madison: University of Wisconsin Press.
180
Drake, P. J. (2009). Book Review: Fiery Dragons. Asian Pacific Economic Lierature, 23 (2),
123-124.,
Drake in his review of the book “Fiery Dragons” wonders this way. It gives a twist to the
victimizations of chettiars as usurers. His opinion is based on the analysis put forth by the
author of the book. As the present state of rural credit compared to chettiar money lending
period, and the development measures have lead to this statement.
181
Medha M. Kudaisya, C.-K. N. (2009). Chinese and Indian Business: Historical Antecedents.
Boston: BRILL.
105
Table 3-1: Paddy Cultivation area182
Year Acres sown in Paddy
1852-53 6,00,000
1872-73 18,71,542
1882-83 34,66,439
1892-93 50,86,853
1902-03 67,12,719
1912-13 80,81,677
1922-23 88,70,342
1932-33 97,11,396
1936-37 98,55,258
3.1.3 Funds
When calculated approximately with the data available, based on the spread of
business in regions and countries, it is seen that, more than half of the working funds of the
chettiars during 1930s was in Burma. The wealth utilized to create assets back home is not
taken for this calculation. The funds used in business as liquid assets abroad are the
base.There is no concrete data available on the expenditure spent on the chettinadu area for
building houses or celebrations like wedding and child births.
182
Source: Mahajani, U. (1960). The Role of Indian Minorities in Burma and Malaya. Bombay:
Vora Publishers.
106
The Chettiars had in their credit about 500 million rupees worth lending, which was
more than the worth of the total rice crop produced in lower Burma. As per the Government
records, it is found that, by the year 1930, chettiars have accumulated around 750 million
rupees of capital in Burma inclusive of outstanding loans and other investments.183The
amount was about 60 to 80% of their total assets.184 In late thirties chettiar investment ran
parallel to British investment.185The annual Chettiar loans in total on that year alone
werebetween 100 - 120 million rupees thatwere about the 70% of total loans lent in
Burma.186In Burmese kyat, K 50 million lakhs187was owed by Burmese to chettiars as
debts. At this point, the lands started falling into the hands of chettiars in great numbers.
When compared, this was a figure almost equal to the British investments in Burma
combined together. This gives us the magnanimity of funds owned by the chettiars, just
only in Burma.
The English businessmen and rice trade merchants struggled against the chettiar
money lending system which penetrated the whole farming community of Burma by one
way or the other. But, all their efforts to stop the Burmese farmers falling into the clutches
of chettiars went in vain. They tried to finance the farmers, who were not already in-debt
183
Rangoon: Government of India.,
184
185
186
(Turnell, 2005)
187
(Win, 2008, p. 143)
107
to the chettiar money lenders before they sow for the next yield. But, still this debt drove
the farmers to the arms of chettiars invariably.188
The point to be remembered while discussing the volume of funds is that, it is not
that all the chettiar firms were equally eligible for the above said amounts. It is a handfull
of chettiar families, their lineage with siblings of two to three generations owned huge
chunks of these businesses. The other major part was owned by medium level firms, who
would do the network with the bigger firms, and tend to show a followership to these bigger
firms as leaders.
It is the basic concept of the chettiars “multiplying” the money that has lead to this
massive fund circulation. Chettiars followed the practice of spending only from the profit,
i: e interest that was earned from the investment. Out of the profit, a portion has to be
invested and the investment grows continuously. This multiplying, meticulously and
sincerely done,has made it possible for the small group of people from the corner of south
India to get compared with the British investments.
When the separation of Burma came as a big thunder, the Chettiars were forced to
move the capital invested in Burma to their native land. Majority of the firms tumbled
down in no time for one reason- their assets was not thatliquid; they possess lands in lieu
of bad debts.
Another thunder struck to these Chettiar firms, in the form of land purchase bill,
which literally ripped out all the lands owned by the Chettiars to the Government of Burma
and in lieu compensation to be paid in installments. The not-so-properly-structured Burma
government was the reason for big loss and if not for the efforts of Nattukottai chettiar
188
(Scott J. G., 1882)
108
association,the losses would have been more. However, the political environment and
changing scenario forced the Chettiars to move out all their capital out of Burma.
In the year 1937-38 rupees 3,25,00,000 had been repatriated to India from Burma
by postal money order.189 The amount transferred through banks is unknown. Further, it is
found that a tricky method was followed to send the money to the native in a safer method.
The Currency bundles were cut diagonally and send the two bunches separatelythrough
postal service to a relative in Chettinadu, in an interval of one week. The receiver in
Chettinadu will change the cut bundles for fresh currency in any of the Chettiar banks.190
3.1.4 Firms
By 1910, Chettiars had 350 firms for money lending, mostly focusing on agriculture
loans. The number grew to 1650 representative offices in 1930and around 100 to 120
million of rupees of loan were issued from these 1650 Chettiar firms in Burma.191 Out of
these the vast majority, more than 85% of firms were located in Lower Burma itself. It is
mentioned that 343 offices were in Rangoon alone. It is said that “throughout nearly every
well populated part of lower Burma there is a Chettiar money lender within a day’s journey
of every cultivator”.192 A chettiar booklet for internal communication named “Burma
Rangoon Members Jabda”, in 1936 elaborately lists out the names of 131 places where
chettiars had firms along with the names of 1260 Chettiars who were having shops in these
189
Mukherjee, B. S. (1975). Burma and West. Agra: Ranjan Prakashan.
190
This method is stated by an informant, who worked in Burma for a while as Agent and whose
uncle had a money lending firm in Burma. Cross verification was not possible due to limitation
of informants who has insider information of Burma practices.
191
(Turnell, 2005)
192
109
places in Rangoon.193According to this booklet, the Moghul Street of Rangoon, which was
the major concentration area of Chettiar money lenders, had 199 Chettiar shops operating
from around 50 Kittangis. By the door numbers of Kittangis given in the booklet, it is as
if the entire street were studded with Chettiar firms only.
It would be easier to understand the volume of chettiar firms if we compare with

the Marwaris, who are said to be the principal class of financiers. Their most important
centre of business was Calcutta and they had a Marwari Association in Rangoon with 400
members, out of which there were only six bankers in Rangoon, three in Moulmein and
five in Akyab. 194
3.1.5 Acquisition of Lands
Approximately 75 % of chettiar loans were to rural farmers, mostly in Lower

Burma. Crop loans are usually given every year for the expenses of cultivation. The loan
was to be repaid after cultivation. Collateral security was often the land itself, except for a
very few and rare cases of other valuable items. The great depression turned the chettiar
business upside down as the farmers were not able to repay the debts. Slowly the bad debts
had to be compensated with the acquisition of land. The great Economic depression in
1929-1931 was a night mare to the peasants as the Colonial Government didn’t lean and
still forced the peasants to pay the annual land tax.195 Chettiars too demanded repayment
to keep the cash flow unperturbed. This resulted in chettiars becoming significant non-
cultivating land lords, whether they liked it or not. During 1930s, they had become absentee
193
Angathinar Jaabdha. (1936). Rangoon: Nattukottai Chettiar Association.
This booklet found in the Kovilur Mutt museum is the authenticated document of Nattukottai
Chettiar Association, which lists out all the chettiar firms in Rangoon with names and
addresses.
194
195
(Win, 2008) It is mentioned that more than £38 Million were collected as land tax
110
landlords of nearly thirty percent196 of the cultivable lands in Burma that is around three
million acres.
This transformed the once land owner and farmers of Burma to mere agricultural
labourers in their own land, which ignited the resentment towards the chettiars. Chettiars
didn’t want to do agriculture197 and hence, they were keen in liquidating the assets and
were not happy with the possession of lands. Hence, the practice of selling back to the
owners of the lands was insisted by the Chettiars, but the failing economic stability of the
country didn’t allow that. Hence, the chettiars image among the common people was
painted by the extremists group of Burma198as “dragons”that alienated the lands from its
owners. The propaganda has created bitterness between the chettiar money lenders and the
Burmese. This was the starting point for the chettiars to move out to their native land.
It is to note that all the land transfers are not done just as it is for bad debts. In most
cases the land value and the debt value didn’t match. In these cases, chettiars has to face
the problem of giving cash to the Burmese farmer for the difference of value, otherwise the
land will not get transferred. Some cases are mentioned that, the Burmese asked for more
amount than the actual value of the land, exploiting the plight of chettiars for liquid cash,
to transfer the title of land. In these cases, already crushed on the liquid assets, chettiars
found it impossible to write off the debt or acquire the lands. This created another kind of
196
Tinker, H. (1989). South Asia- A short History (Second ed.). London, UK: Macmillan Press.
According to Hugh Tinker, around 48% of the farm land passed into the hands of absentee owners
and 2/3rds of this alienated land was owned by Chettiars.
197
It might be because of the community rule book which prohibits agriculture as occupation to
Chettiars as the Chettiars during that period was strict with their tradition and community rules.
198
They were essentially freedom fighters and against the British Rule, which automatically make
them hate any other country mens’ domination upon their own people and soil.
111
economic depression in the chettiar firms.199This scenario was conveniently not discussed
by any of the foreign authors who accused chettiars of land alienation, might be due to the
volume of funds on the other side was too huge when compared to the losses borne by the
Chettiars.
3.1.6 Japanese Invasion on Burma
The World War II and the Japanese Occupation during 1942-45 saw to the
remaining Chettiars and other Indians pour out from the country and ran for their lives
leaving behind the prosperity they earned in the Burma. Even after the restoration of British
Rule in 1945, the Indian population did not return back to Burma. 200It was calculated
roughly that around 4,00,000 of Indian fled Burma during the Second World war and
Independence Struggle.201The bitter experience of evacuating abruptly leaving all their
earnings, possessions and assets in Burma added up with the turmoil of walking all the way
from Burma to India. Lot of Indians died during this emergency repatriation. Chettiars who
were elite and rich were saved from the stressful voyage, but the smaller firm owners and
chettiars employed as staffs were caught in the distraught and were not able to regain their
adventure spirit to go back to the torn land. The loss of property and money pulled them
down in the economic status and the inefficiency in facing the change created a traditional
and cultural friction in Chettinadu.
3.1.7 Nationalisation of Lands
The Burma Socialist Party on the upcoming Independence of Burma, took strong
initiatives to take back the lands from the possession of chettiars and paved way by the
Party’s Agrarian Policy. The aim of the policy is to abolish land-lordism and put the
199
Reporter, D. R. (1930). "Burmavil nam tozhil nilamai" - Tamil. Dhanavanikan , 24.
200
201
(Win, 2008, p. 219)
112
peasants back in the land owner status. The implementation of the agrarian policy was the
last straw in the business episode of the chettiars.
The agrarian policy had provisions for compensation of land taken back from the
possession of chettiar firms. But, the negotiations between the leaders of India and the
Burma were not fruitful enough. Meanwhile the assassination of the chettiar – Vellaiyan,202
son of Murugappa Chettiar, who was instrumental in the negotiations, posed a setback in
the events of negotiations and minds of chettiars.
The land owned by chettiars was much bigger issue for the Burma’s new
government to tackle with as the priority issue, as they have promised the Burmese with
the “perfect world for peasants”203as the vision of the party. Hence, during the 3 days
meeting between the then Indian Prime Minister Nehru and his daughter Indira Ghandhi
with the Burma Socialist Party leaders, the chettiars’ land property issue was discussed
along with the border issues,204 but mostly favouring the peasants and politicians of Burma
in this regard. These changed the negotiations status and Chettiars had to compromise with
the conditions of compensations for the land taken by the government, and to the extent
that the compensations will be paid in installments. The government constituted a
compensation assessment Board to compute the compensation to be paid. Around 1,50,000
persons of Indian origin were entitled to compensation in 1963-1965.205
During 1962, around 150,000 Indians left Burma leaving behind 120 million rupees
(Rs. 12 crore) worth of assets, which was estimated as 30 million by the Burmese
202
Vellaiyan Chettiar was shot dead at his home’s doorstep
203
(Win, 2008, p. 143)
204
(Win, 2008, p. 219)
205
S.R.Sudhamani. (1982). Indians in Singapore. In I. J. Singh (Ed.), Indians in Southeast Asia (p.
90). New Delhi, India: Sterling Publishers Private Ltd.
113
sources.206According to J.Becka, (1995) in 1995 there were about 100,000 Indians in
Myanmar.
As this case is still not settled, an association was formed to fight for the
compensation. According to this association claim, 200 crores of rupees are yet to be paid
by the Burmese Government to the Chettiars as on 1965207. The claim is more as of 2014,
as per the calculation of a 77 year old Chettiar, who states the assets would be worth around
Rs. 1 laks crore.208 He is a member of”Burma mudaleetalar kuzhu” which means the
Burma investors Group. This group tries to collect the documents from the community
members who own buildings and bungalows to revive for compensation suits, but
understands well that it is tough task. In case of lands, they understand well that it is not a
tough task but an impossible one.209
3.1.8 Rice Riots and consequences
In 1930, when the Indian laborers performed strike for better wages, their demands
were ignored and Burmese were employed as labourers. Hence, Indians returned to work
withdrawing their demands. This was used to awake the anti-India feeling among the
otherwise friendly Burmese indigenous population.In 1931, an anti-Chinese riot also broke
out in Rangoon.Slowly, Burma changed itself from being a safe haven and a place of
business opportunity. Chettiars, who are by nature god fearing and sidelining themselves
from wars and fights, found it difficult day by day to conduct business in a land full of
angry people. Hence, they started winding up the firms. But, the possession of lands, and
the investment locked up as lands posed as a real hindrance to do so. Chettiars usually
206
207
Alagappan, A. (1965). Andru nagarathargal kanda Burma - Indru. Karaikudi.
208
Narasimhan, T. (2014, January 3). To Burma, for our Properties. Business Standard .
209
(Narasimhan T. , 2014)
114
avoided acquiring the title of land and preferred to keep liquid assets.The sudden change
in the money lending occupation which is almost infused in their nervous system, it was
like a nose dive to think on new avenues of occupations.
During 1938 again the racial tensions between the Indians and Burmese
surfaced.210These communal riots between urban Buddhists and the Muslims created a
deep impact between the Indian Hindus and Indian Muslims in Burma. The communal riots
were based on the issue of marriage between Indians Muslims men and Burmese
Buddhistwomen, for which the Buddhist groups were strongly agitating to. Often, this riot
was misunderstood211 in some studies as riot caused because of Chettiars marrying
Buddhist women.
However, the origin of rebel – the exploitation of peasants – seems to have an

hidden agenda. It is worthy to mention that the saya san rebellion, the important rebellion
of peasants, was not having the intention of sending the Chettiar money lenders(who were
exploiting the peasants) and the Indian labourers(who were competing with Burmese
laborers) out of Burma, but only to terrorize the British to take back the arbitrary taxation
of the rural212. This clearly indicates that, the arbitrary taxation burden was more fearful
and problematic for the Burmese peasants than the other issues. One reason for the attitude
of Burmese to this reaction may be that, Burmese have always considered Indians and
Chinese as their neighborhood brothers, but the English were not considered so.
210
(Win, 2008)
211
(Win, 2008)Even though it is true that Chettiars too taken Burmese wife, the riot was primarily
focused on the Indian Muslims marrying Burmese women, as that was more in number. But,
win missed to mention the Indian Muslims marriage issue
212
(Win, 2008)
115
3.1.9 Separation of Burma
The British policy regarding the Indian laborers migrating into Burma was to leave
at the hands of agents. In 1886, the Famine Commission of India recommended that the
people from congested area should be encouraged to migrate into Burma for development
of waste and unproductive lands, but such task can be given to private enterprises. And this
has created a 50 years of constant flow of Indians into Burma. At one point of time the
population of Indians were more than the Burmese, and it is said with a bitter tone in Burma
that “you need not know Burmese language to be in Burma, any Indian language will
do.”213
However, it is to be understood that, the mere annexure of Burma as a province of

India never worked between the two different countries. The differences between the
people, their culture, religion, language and food were never to get reconciled. Burma stood
alone always and never got the feeling as a part of the bigger neighbor. But the tangled ties
of chettiar money lenders and labour migration posed a threat when the time of separation
came. The British, who used the Indian labors to build the country, used the chettiars to
fund the development projects. It proved to be a win situation for British and a loss situation
for all the other stake holders – chettiars, Indian labourers and Burmese.
After all the years of sticking under one umbrella, it was a difficult task to separate
the Burma ‘province’into a country. But “Burma for Burmese” demand stopped the easy
immigration of Indians into Burma. Hence, Simon commission recommended ‘separation’
as the only solution.
When laws started passing out against the Indian Business interest during 1938-40,
the loud voice of protest started to pour from business men, labor leaders and some
politicians. The separation affected the Indian business interest in many angles. The richest
213
(Win, 2008)
116
and strongly rooted Indian group was the Chettiars who fought back when “Burma land
purchase bill’ was introduced by the Govt. of Burma. The notable negotiator of the Chettiar
group during separation was the second son of AM Murugappa Chettiar, AMM. Vellayan
Chettiar. During 1945, he went back to Burma to estimate the wealth left behind and to
find ways to bring them back to India. This was a series of to and fro to Burma he was
making during negotiations. One evening, when he neared his house after attending a
meeting, it was dusk and someone from behind the garden shrubs shot him on the footsteps
of his house door. He died immediately.214The devastated AM Murugappa Chettiar thus
decided to pull all his business dealings from Burma and Malaysia and to settle in his own
native Pallathur. His decision was to conduct business further only in India. This posed a
huge setback in the negotiations.
Also this incident showed the growing opposition to the Chettiar business in Burma
and the Burmese extreme groups working on that. The otherwise friendly soft Buddhist
Burmese who were noted for their acceptance and patience would have never thought of
such an act. These rang as warning bells and were like an announcement of closure of
Chettiar business phase in Burma.
The magnanimity of the independence struggle obliterated the smaller issues of

repatriating the business men and labourers from Burma. Mostly it was the businessmen
who opposed the decision of separation of Burma. Obviously, the chettiars who cannot
liquidate their money which got trapped as lands cannot digest the scenario of losing all
their wealth in the land that is going to be separated soon and hence raised their opposition
voice loud and clear. During the period of separation the wealthy Muslims of Indian origin
who owned the Scindia Navigation Co., also rose against the separation of Burma along
214
Ramnath, N. (2011, November 1). A.Vellayan: As long as there is growth, there is no problem.
Forbes India .
117
with the Chettiars. Important leaders of that community who were involved in the
opposition were SAS Tayabji, SN Haji Dadachanji, MM Rafi and others.
The concern of these business men were brushed aside as “The Indian Vested”
phenomenon.215This attitude of the Indian leaders during independence struggle can be
understood by Nehru’s words “British rule thus consolidated itself by creating new classes
and vested interests who were tied up with that rule and whose privileges depend upon its
continuance, (Fenichel & Huff, 1971)
It was requested to the Secretary of the state by a wide range of entities like
magazines and associations insisting on the long resident Indians in Burma and assurance
for their citizenship and safety. The final report of the Riot Inquiry Committee conceded
that “an autonomous state normally has the right to determine its population, but
Government of Burma had gone to the length of laying the axe at the very foundation of
Indian business in Burma.”216In an interview, the Burmese Representative U Bah Beh for
Round table Conference mentions that “there will be only two kinds of citizens in Burma
– Natives and Aliens. Even though the new Government cannot reveal the legislations, they
can assure the rights and citizenship of those who stay for more than six months in Burma
and do some business”.217But, According to the Constitution of Independent Burma, only
those who have stayed in Burma for eight years out of the past ten yearswere only eligible
for citizenship. In 1947, out of 40,000 Indians applied, only 10,000 became citizens of
Burma.218 But, in another estimation, during September 1949,the figures are that more than
215
216
217
V.G.Nayar. (1931). Pirivinai virumbum Burmier. Dhanavanikan .
218
Kaul, M. M. (1982). Inidans in Southeast Asia: The Colonial Period and its Impact. In I. Singh
(Ed.), Indians in Southeast Asia (p. 26). NewDelhi, India: Sterling Publishers Private Ltd.
118
1,50,000 out of more or less 2,50,000 Indians in Rangoon had been accepted as Burmese
Citizens.219 However, as per the statements by the informants, the number of chettiars
stayed back is not clearly known, except for one thing – it was very less and when compared
to other Indian communities opted for citizenship, still lesser.
Many Burmese themselves were not very sure of getting separated from India at
that particular time and wanted to prolong a little longer for one reason –the Burmese
government if not formed strong, the country would face problems. Hence, they thought a
mutual understanding between the two countries - India and Burma, of giving the Burmese
the choice of getting separation whenever they are ready with a full- fledge strong
Government,would be a better option.220
During the Second World War, and the exodus continued thereafter, the Chettiars
and the Scindia Navigation Company were the ones to fast act to re-establish the rights of
Indians in Burma. It is mentioned that, the entry to Burma itself was restricted and those
who were living for a long time and those who had large financial stake only were the
exceptions.After the gap between the exiled government of Burma and Delhi became
unmanageable, then desperate Indians in Burma were waiting to come back to
India.Approximately 3,00,000 lakh Indians may have evacuated by sea, air and other
means during that period. 221
219
Kondapi, C. (1951). Indians Oveseas 1838- 1949. New Delhi: Oxford University Press.
220
Editor. (1931, June 19). A Round Table Conference for Burma. The Spectator , p. 5.
“The Spectator” article mentions that many of the people in England consider Burma as a province
of India, and British crown is taking Burma, its people and their issues very lightly. It requests
the Government to give weightage to those people too, who shouts “Burma for Burmans”,
which is as right as in all the other places!
221
119
In 1947, Burma reached a stage of self-government. The Anti-Fascist People’s
Freedom League (AFPFL) and Aung San made it clear that “the Indian business
communities’ interest could in no way be accommodated with the interest of the indigenous
one”. Aung san praised Nehru for his efforts to check the “rapacity and economic
imperialism of Indian big business”.222
The fact wasthe priority to restore peace and independence in both the countries
was higher than the importance of Indian business interest. Hence, the politicians and
leaders from both the countries willingly hid the loose ends like business interests and
properties of Indians abroad.
This is where the turn of plight taken its fast pace for Chettiars in Burma. The due
compensation for their lands under the Burma’s Land Nationalisation became a faraway
dream. Approximately a total of 605,435 acres of land was nationalized and redistributed
among the Burmese cultivators. Even though the compensation was promised, the
remittance process was real difficult to move the money from Burma. The compensation
process was done in steps, first a total of 2500 kyat will be paid and the remaining sum to
be paid in “Government Bonds” bearing 3 percent compound interest over a period of 15
years.223
This issue was dealt as tripartite negotiations between the Chettiars, Indian
Government and the Burmese Government. The attitude of Indian Government was not so
favorable towards the business interest when compared to the newly formed two colonial
countries neighboring friendship interests. Moreover the limitations also were there
222
223
(Win, 2008)
120
likeinterfering with the other countries internal decisions and policies towards land
acquisition and distributions.
On the other side, the newly formed Burmese Government was playing a strategic
defensive role to give importance to the indigenous farmers and citizens than to look after
the issues of foreign business people, particularly Chettiars bankers, who were described
as “Villains” of alienation of Burmese lands. The animosity of Burmese towards the
chettiar bankers were another unfavourable reason.
The Chettiars who got entangled in the land loss issue were agitating but with no
back support from either side. Some of the Chettiars start feeling that whatever they have
earned in the foreign land and what they have got as compensation is enough and went
back to native place. Some of the big Chettiar firms who have really amassed wealth were
in dilemma to whether forego the properties or not.
The associations that were fighting in this issue were “ Nattukottai Chettiars
Association”, “Burma Indian chamber of commerce”, “Burma Muslim chamber of
commerce”, “Burma Indian national union”, “Indian farmers welfare association”, “Indian
officers association”, “Bharat Chamber of Commerce” and “All Burma Indian congress”.
3.1.10 Nattukottai Chettiar Association
Almost all the Chettiars doing business in Burma were associated with
Nattukottai Chettiars association.224In 1923 NCA had 1498 member firms out of 1650
Chettiar firms including 350 in Rangoon.225 NCA acted as a powerful and influential entity
in Rangoon. The school run by the NCA in Kanbe, Rangoon was exemplary in teaching
224
Based on the informants’ statements.
225
Editor. (1930). Dhanavanigar Munnetram, Burma Nattukottaialargal Sangam. Dhanavanigan ,
p. 96.
121
the education for life and business for the Chettiar male children. Approximately Rs.1,
50,000 was spent to build the school and Rs. 2,00,000 was kept capital to run the
school.226The Association requested the Burmese Governor for two seats for NCA in the
Legislative Council of Rangoon, mentioning the fact that, Chettiars Associationin Madras
had the same privilege.227As a result, during 1941, the House of Representatives, Chettiars
Association was allotted seats under “Chambers of Commerce” allocation.228The

Association saw a lot of milestones in the journey of Burma episode of Chettiars.
3.1.11 Conclusion
Bhattacharya comments sadly that the India’s contribution to the making of a

Modern Burmese state has not been accorded due recognition. The British has to be blamed
for this for playing all the way and victimizing chettiars among the Burmese and also the
Chettiarsto be blamed for theattitude after the Burma crisis. The world is yet to speak about
the major role played by the chettiars positively in building the city of Rangoon. During
1965, there were 17 Chettiars, all aged above 65 years, living in Rangoon, holding to their
chettiar identity alone and nothing else.229The temples built by them are now maintained
by the local Tamils. In the temple room of the God Muruga, favourite deity in their famous
Rangoon Kittangi “Aararai” (meaning 6 rooms), a stone inscription says that “even we go
home, we will always be your devotees”.
Certainly Chettiars have created a deep impression in the building of Burma and
that cannot be denied ever. The beautiful set up of networking, systematic money handling
226
Editor. (1931). Kanbe Dhanvaisiar Kalvi Kazhagam. Dhanavanigan , pp. 343,344.
227
Editor. (1931). Rangoon Sattasabai. Dhanavanikan , p. 58.
228
Mills, L. A. (2001). Burma. In P. H. Kratoska (Ed.), South East Asia - Colonial History (1 ed.,
Vol. III, p. 158). London, UK: Routledge.
229
(Alagappan, 1965)
122
and organized business operations are true to be felt like a perfect model of community
business in the world history. Even if the chettiars wants to replicate it again, the possibility
seems to be a distant one.
3.2 Ceylon (Srilanka)
3.2.1 Introduction
Chettiars have started their expeditions in Ceylon in the year 1796,230 which is
comparatively very early than the Burma Business which started in 1824. There are other
mentions like they have set foot in Ceylon during 1930 itself.231It is evident in history that
Pandya kings were maintaining a close relationship with the Ceylon rulers for a long
time.Being the honourable residents of Pandya kingdom, it is seen possible that even before
the documented date, the chettiars could have conducted trade with the Ceylon long ago.232
The role played by the chettiars in conducting the trading and money lending
business in Ceylon for more than a century is undeniable in the areas of tea estate
developments in Ceylon.The maritime trading should have included rice trade, the
abundance of rice from Tanjavur and Kumbakonam to the ports of Ceylon from
kaviripatinam during the Chola Period.233
230
Muthiah. S, M. M. (2000). The Chettiar Heritage. Chennai, TamilNadu, India: Chettiar Heritage
Publishers.
231
Sharma, V. (1970). Nattukottai Nagarathar Varalaru. Madras: Vaanathi Pathipagam.
232
Karashima, N. (1984). South Indian history and society: studies from inscriptions, A.D. 850-
1800. NewDelhi: Oxford University Press.
233
P.Vengatesan. (2002). Kaviripattinam maritime activities in India. Pondicherry: Pondicherry
University.
123
According to Weerasooriya, Chettiars had connections with Ceylon during the
Dutch period 1656-1796234. However, from around 1820’s, the Chettiars were
predominant in the trade of rice and cloth from India to Ceylon and in turn imported arrack
and other coconut products from Ceylon to Madras and set up a lot of firms for trading
Rice and cloth in coastal Ceylon. It is quite interesting to note that, the Chettiars not only
captured the market of Ceylon rice trading by the rice they procured and imported from
Tanjavur of Madras Presidency, but also from Calcutta of Bengal. Their trading and
networking skills were acute and calculative, that they were able to exercise high influential
power over the fisheries, rice, cloth and salttrading in Ceylon.235 Their money lending
firms placed them in an influential place in the island and they flourished with the business
from Ceylon.
In the advent of 20th century, chettiars were in the trade of Coffee, tobacco, and to
the surprise, even one chettiar had the monopoly of Opium trade in the island by obtaining
the entire opium license with the partnership of five other chettiars.236Some chettiar firms
possessed fleets of ships to shuttle goods to and fro from Ceylon to India and vice versa.237
3.2.2 Rice Riots
The chettiars in Ceylon have conducted various trades other than money lending
and banking services in Ceylon. The trades included rice, silk clothes and jewelries. The
234
235
236
237
124
colonial government‘s policies on grains trading affected the living and trading of chettiars
in Ceylon inadvertently to a great extent. Chettiars were often accused of rice hoarding and
exploiting the poor farmers of Ceylon. Even though the chettiars were accepted as part of
population due to their long stays in Ceylon, the difference in the economic status between
the chettiar community and the indigenous people were so obviously high. The resentment
of foreigners being so wealthy was prevalent among the people of Ceylon.
During the year 1866, the colonial government withdrew itself from the grains
trade, and due to this the price in the rice started fluctuating. Rice being the staple food of
the Sinhalese and the bare necessity of everyday life, it wasequivalent to famine for them,
except there was no famine and rice production was stable. It was only the market was
manipulated and the rice sales were always facing demand and as a consequence, the price
rose high.
The rice that was produced in the coastal areas of Ceylon was mostly consumed by
the locals and a very little excess rice was sold by them. It is to be noted that a common
characteristic of Burmese, Malays and Sinhalese was not to produce in excess or work very
hard to produce more. They were content with what they produced - less work and more
peace - till this culture is changed by the colonialism.238 The concept local production –
local consumption was followed in almost all the Southeast Asian countries for that matter.
The other source for rice is from the major exporter – India. The price of the rice
fluctuated based on the production, economic and market conditions of India.239Chettiars
were the major importers of rice from India in Ceylon. The counterparts to chettiars in rice
import were the Indian Muslims called as coastal moors. The coastal moors were of
238
H.Kratoska, P. (1975, June). The Chettiar and the Yeoman. Occasional Paper No.32 , 1-11.,
Rogers, J. D. (1987, July). The 1866 Grain Riots in Srilanka. Comparitive Studies in Society
and History, 29 (3), pp. 495-513.
Both Kratoska and Rogers mention this common characteristics of Malays and Coastal Ceylonese.
239
(Rogers, 1987)
125
highlypopulated community, but not able to compete with the capital investment of
chettiars, which was very high.
In 1866, following the bad weather and the horrible famine in India, the imports to
240
Ceylon got minimized. As the colonial government’s monitoring of the price of rice
failed, the rice price rose very high, out of reach to the common man. As often said, hunger
see no boundaries, and hence, riots started breaking out here and there, often vandalizing
the rice shops which were suspected of hoarding rice. Riots mainly had one aim- looting
the shops and vandalizing them.
As a result, when the traders threatened to close the shops, the riots became
stronger. The situation got worse, and the streets where Nattukottai chettiars were having
their shops in concentration were targeted. Curious to study, it was not only the rice trading
chettiar shops that were targeted, but also the silk traders and other merchants241 were also
targeted. This shows that the accumulated longtime resentment on the wealthy status of
chettiars acted as ignition to the common Sinhalese.
It is worth noting the point that being identified as spiritual and simple, when the
riots broke, chettiars responded with an army of men gathered with guns and knives to
defend themselves from the Sinhalese villagers who planned to loot the rice from their
shops. It was a clear case of racial and ethnic tensions betweentwo groups with different
economic status, when the difference goes unchecked.
During the rice riots in Srilanka, one of the shops vandalized belonged to
Anandappa Chetty and the loss was estimated as five thousand pounds, which includes the
stock of rice in the shop, clothes, silk, money and jewellery.242When a labourer’s earning
was between one to two pounds a month, five thousand pounds in a shop of a Nattukottai
240
(Rogers, 1987)
241
(Rogers, 1987)
242
(Rogers, 1987)
126
Chettiar, who is considered as foreigners obviously will create animosity. Even though
Chettiars were believed to be in trade in Ceylon from sixteenth century, this stark difference
seems a valid reason for the Ceylonese to grow bitterness towards the wealth accumulation
and wealthy chettiars.
3.2.3 Chetty Crisis
The period around 1920 was difficult for the chettiars as there was a general
contraction of credit all over Ceylon. Already the Money lending Ordinance of 1918, which
fixed a ceiling in the interest rates,created a negative tone on the chettiars business and
started a closing phase of businesses. In 1925, a leading Chettiar firm “Ar. Ar. Sm.,
collapsed, taking down a lot of firms’, along with it, which weredependent on it. This
incident was called as “Chetty crisis”. The firm was declared insolvent as the assets in
Ceylon was estimated at1.5 lakhs and the liabilities were 17 lakhs along with a revelation
of number of malpractices.243Generally, the reason cited was the chettiars’ practice of
repaying a European bank loan by inter-chettiar loans, i:e, taking a loan from another
chettiar firm, who in turn takes loan from the European bank itself to issue to the former.
Hence, it was actually the banks money that was used to repay the loan to the bank itself.
It went up to a huge volume of fund – Rs. 25 million244 without proper securities. This was
the result of the chettiars and European banks acting hand in glove in the banking business
for a long period.Hence, this incident was not seen as an individual firm’s failure, but in
the words of Ceylon Banking Commission (1934)
“as possible types which could be and might be adopted by other
firms of chettiars in the island.”
243
(Mahadevan, 1976)
244
(Rudner, 1994)
127
When the incident created a question mark on the credibility of both Chettiar as
well as the European banks, the European banks stopped further credit245 to all chettiar
bankers. As a chain of consequence, when the credit from European banks stopped,
chettiars started to close their loan accounts and denied extension on loans to Ceylonese
farmers and other clients. This created a gap between the chettiars and the Ceylonese and
also with in the span of 5 years, 1929-1934, brought down the chettiar firms business from
150 million to a low of 100 million. During this period, around Rs. 26 million (Rs. 2 crores
60 lakhs) of their capital was remitted to India to their home land.246
3.2.4 Acquisition of lands and estates and accusations
The Ceylon Banking Commission Report reveals a lot of facts about the acquisition
of lands and estates by the chettiars. In its report in 1934, it mentioned that, the chettiars
cannot be blamed for acquisition of lands, as they don’t seem to be very anxious to acquire
lands”. It further states that “the chettiars does business with money and are willing to hand
over the lands and estates whatever they acquire for even a lesser price”. 247They clearly
stated that the acquisition was forced upon the chettiars by the debtors, who preferred to
transfer their properties rather than face more difficulties. When the peasants were
enquired, some accepted that chettiars are the source of easy loans with or without security.
Still they deny admitting that even though they take high risk on lending money without
security, the loss they faced on doing so was not proportionate to the wealth acquired. And,
looking back from now, it seems to be quite true. However the witness statements during
the inquiry clearly state the hatred of Ceylonese peasants towards chettiars.
245
(Mahadevan, 1976) Imperial Bank reduced its advances to chettiar firms from Rs.100 lakha to
just Rs. 6 lakhs.
246
247
(Ceylon Banking Commission Report, 1934)
128
3.2.5 Chettiars Association
The Chettiars money lenders of Ceylon were all membersof the Ceylon Nattukottai
Chettiars Association, which was established in the year 1927. As in any other place of
business, in Ceylon too, the association decided the rates of interest at a frequent interval
and communicated to all the members to follow. They built a number of God Muruga
Temples in Ceylon and with the money collected through “magamai”, purchased gold and
silver cars (ther) forthe procession of the god.248 The chettiar community collectively
celebrated the ceremonies and kept their closeness to each other. Exceptional cases were
there too in claiming worshipping rights to temples built by them, which went till law
suit.249
3.2.6 Exodus of Chettiars from Ceylon
Weerasooriya in his book “Nattukottai Chettiars Merchant Bankers of

Ceylon”(1973) gives a fine analysison the reasons for the departure of the chettiars from
Ceylon.250 They are
 The money lending Ordinance No.2 of 1918, which fixed a ceiling on the rates of
interest and required them to maintain proper books of accounts prescribed by the
ordinance.
 Income tax act in 1931 and the subsequent double taxation in Ceylon and India
 Citizenship laws of Ceylon in 1948 after the Independence of Ceylon, which
denied citizenship to majority of the chettiars and issued temporary Resident
Permits.
248
249
250
129
 The final blow was the provisions of the Finance Act No.65 of 1961. This act
prohibited the chettiars of money lending business as they are non-ceylonese, and
only Ceylonese can conduct money-lending business.
Apart from these, there are few other reasons like
 The enactment of the Business names Regulation Ordinance of 1918. As

mentioned in earlier topics, the “Chetty Vilasam” or the initials of the Chettiars
were used for their business too as the name of the business and received
judicial recognition as combination of letters. But, the Ordinance forced the
Chettiar firms to register the business mandatorily under a name. As per the
observation of a Justice. Mr.Schneider, the decision was that “no chetty in
Ceylon who trades unders a vilasam can carry on his trade without registering
his business”.251
 The Pawnbrokers Ordinance No.13 of 1942
 The Indian and Pakistani Residents Act No.3 of 1949.
The establishments of the Bank of Ceylon in 1939, State Mortgage Bank in 1931,
and Agricultural and Industrial Credit Corporation of Ceylon in 1943 were the other
obstacles that hindered the business of chettiars which was very thin already. These were
partly the work of British to keep a check on the foreign capital preceding independence252
and unfortunately, it victimized the chettiars. With this, the chettiars lost all the motivation
to stay back in Ceylon and wound up for good to return to India.
251
See more in (Weerasooriya, 1973, pp. 104-105), the case of “Annamalay Chetty vs. Thornhill”
252
Moore, M. (1997). The Identity of Capitalists and the Legitimacy of Capitalism: Sri Lanka since
Independence. Development and Change, 28, 345.
130
3.2.7 Conclusion
It is a natural phenomenon if we see through the history, that, a group of people

working or conducting business in an alien land can never get to the status of natives unless
they settle in the real sense, that is living as family and getting into the veins of the lands
culture. The language, dressing, food, habits of chettiars, who goes back every now and
then to his “home” and keeping roots very strong with their homeland could have never
made them, settle in any alien land. This happened in Ceylon too, and as of now there are
very few chettiars living in Ceylon. But the island acted as an entry for chettiars to other
Southeast Asian countries and gave a lot of wealth to this community which is the base of
many companies today.
3.3 Malaya (Malaysia)
3.3.1 British Malaya
The ancient history of Nattukottai Chettiars passed on to generations through legends

mentions the movement of their people to various countries for trade particularly to
Malaysia, which is still mentioned in Chettinadu area as “Malaya”, the former name of
Malaysia.The Malay word for capital “modhal” used in the flourishing commercial
transactions of the sixteenth century is more or less similar to the Tamil word for capital -
“mudhal”.253
As a part of colonial spread, the British started taking interest over Malaya states
during 1874.254 The British Malaya had three divisions:
1. TheStraits Settlements comprising Singapore, Malacca, Penang, which included
province Wellesley.
253
Tarling, N. (1999). The Cambridge History of Southeast Asia - From Worldwar II to the Present
(Vols. 2, Part 2). London, UK: Cambridge University Press.
254
(H.Kratoska, 1975)
131
2. The Federated Malaya States – Perak, Selangor, Negri, Sembilan and Pahang
3. The Un-federated Malay states – Johore, Trengganu, Kelantan, Prelis and Kedah
It is believed that chettiars would have moved into the Straits Settlements during
the middle of nineteenth century.255There is one study from Malaysia that states that the
pressure imposed by the British on Indians made the chettiars to look for new places for
business.256But it seems to be a little polarized, as the chettiars had quite a good
cooperation from the British and acted as middlemen for British in many instances.
Moreover, the historical evidences prove that chettiars were habitual of looking for
business opportunities outside the country from a far long history.There are a few Dutch
documents which mention the presence of chettiars in Malaya during 10th and 11th Century,
and it correlates with the other evidences of maritime trading during the Rajaraja Cholan
era.257 Moreover, there are also mentionsthat Chettiars were exporting textile and rice for
spices to Melaka, Malaya during 1511-1522.258 However, among the Indian commercial
groups that entered Malaya, Chettiars had the widest impact on the country.
3.3.2 Swampy jungles to paddy lands – The conversion
The abundant jungle and swamp area of Krian District in the state of Perak, Federal
states of Malaya, were waiting to get converted into lands of some value. But, until the
arrival of British and the Chettiars to grant loans for conversion of lands into cultivable
areas, the Malayans - who were contended with what they had and with a culture of
conducting agriculture only for the needs - were not ready to work more.
255
(Takeshi, 2015)
256
Umadevi Suppiah, S. S. (2013). Origin and History of Economic Activities - Chettiars in Malaya
(Malay). Malaysian Journal of History, Politics and Strategy, 40 (1), 63.
257
Annamalai, P. (1988). Nagarathar Kanakkiyal Murai. Chennai: M.M.Muthiah Research Centre.
258
(Umadevi Suppiah, 2013)
132
The British cliché on Malayans was that they are lazy and not willing to open new
rice areas. Hence, they thought, they should teach the “lazy” Malayans259 how to undertake
commercial rice cultivation. Even though this justification was made by the British
Officials as common statement, the obvious hidden agenda was to increase the rice exports
to Europe.
The items of substantial value the Malayans possessed were only the land and the
yearly crop. These two formed the basis for the rural debt. Malayans borrowed from
Chettiars not only for land cultivation, but also for bigger expenses like marriage
ceremonies or journey to Mecca, which were costly affairs. It is not only for the peasants
the Chettiars were lending money, but also to the European entrepreneurs, Chinese
speculators, Indian hawkers and peddlers and even to the Malay Royalty!260The Colonial
Government was favorable to Chettiars in Malaya in various aspects and was well aware
of their operations and extensions. When there was criticism against the chettiars during
1923, the Chief Secretary made favourable references to Chettiars in the Federal
Council261.
The competitors to the chettiar money lenders were the Chinese shopkeepers. Being
middlemen in the rice trade, the Chinese shopkeepers used to lend money to the rice
farmers, usually before a few months of harvest, based on the assumption of the quality
and value of the paddy.262That would be the time for most of the farmers to approach
money-lenders, as the previous harvest profits would have eroded before a few months of
harvest. This helped the Chinese shop keepers to acquire rice at a lower price as they
259
(H.Kratoska, 1975)
260
Arasaratnam, S. (1970). Indians in Malaysia and Singapore. London: Oxford University Press.
261
(Takeshi, 2015)
262
(H.Kratoska, 1975)
133
befriend the farmers first by issuing loans and second by not pulling them to court even in
the case of defaults. In such case, they can acquire rice at a still lesser rate.
But a Chettiar money lender will pull them duly into the court of law for not
repaying the money. This might be depicting the chettiar professionalism, but later on, as
chettiars too were in rice trade, they bought the rice at a competitive rate for the money
due.
3.3.3 Rural Indebtedness and Colonial reactions
Till 1914, the cultivation was not good due to unfavourable cultivable conditions
and hence, the peasants were not able to pay tax, resulting in the Government reclaiming
1799 acres of rice land. In 1915 it rose to 1809 acres. The total cultivable land in the
districtduring that period was just over 50,000 acres.263The scenario changed, only when
the lands got some value, and the Chettiar money lenders started granting loans on these
lands.
Loans on lands mortgaged were amounting to as much as 100% or even 150% of
the value of the security. It was to be mentioned that the processing of loans with a
chettiarwas quick and easy. As the cultivation was not assured and the risk level was high,
the interest rates were high too, 24% to 36% per year.264
In 1938, it was estimated that an average Malayfamily was taking loan way more
than their income from the Chettiars.265 For example, it was found that, when the average
income was around 120$, the loan taken from the Chettiars were somewhere between 100$
263
(H.Kratoska, 1975)
264
The high interest rate was commented in an article by Sri.Iyer in a Tamil magazine during 1930s
and as a reply to that, in the Dhanavanigan magazine, a article written by the Editor states that,
the people who are critisizing the high interest rate of chettiars are not looing into two things –
the risk involved and the money drain from ceylon to England, which was very huge. so, this
is how the chettiars justified themselves for charging higher rates.
265
(H.Kratoska, 1975)
134
to 1000$, sometimes even more. As mentioned earlier, these were not purely agricultural
loans, but also including the luxurious spending on marriage and other occasions of the
Malay.
To tackle with the problem of rural indebtedness of these Malays to chettiars, the
Government took an alternate step of providing mortgage loans for purely agricultural
purposes or to redeem the mortgaged land. The important point was that this loan was
offered at an interest rate of one-half of one percent per monthwhich was way lower than
the chettiar rate of interestand with repayment by installments over a period of notmorethan
three years, which was far better than chettiars terms.
The government loans didn’t succeed even with all the benefits and this strategy
proved to be a failure to curtail the chettiar loans on lands. As a result, a committee was
appointed in 1911 to inquire on the reasons for failure of the scheme. The major two
reasons found were
1. The lengthy period of two to three months of processing, whereas the chettiar loans
were granted then and there. The farmers,if can wait for three months, they don’t
need the loan at all, as their harvest will supply them with the money. Hence, the
time period taken to sanction the loan was unbearable by the poor farmers.
2. The amount of loan sanctioned was only half of the value of the land mortgaged.
On the other hand, the chettiar loans were more than the land value.
The usage of loan amount was also restricted in the government loans. Further, as per
an informant who is still in Malaysia, not only the cumbersome procedures were liked by
the Malays, but also the simplicity of Chettiars and their firms, their credibility, the
Professionalism, underlying tone of friendliness and the trust the Malays had in Chettiars
were unbeatable.
The worry of Malay rice farmers’indebtedness to chettiars, which was very
common, was mentioned byHastings Rhodes, Legal advisor to Federal Malay states as
“Thus a race of yeoman-peasantry aforetime happy and
prosperous incapable from the very nature of their country and
135
genus of supporting themselves in any other country find too late
they have become homeless wanderers in their own land”266
Although it is true that the race of yeoman-peasantry have become landless and
partly chettiars were responsible for that, the other part of the statement that “once happy
and prosperous”cannot be blamed on the chettiars, if one look at the issue closely. The once
contended Malays were made into “people-with-more-wants” by the English Rule and the
two responsible parties were the manipulating English and the innocent Malay peasants.
However, the British administrators in Malaya were forced to bring the problem of
“landlessness” under control, and the chettiar debts became priority issue for two reasons
– one is Chettiars don’t do farming and the productivity goes low if the lands are not
cultivated. The other is, the chettiar loans should only be controlled and not banned,
because the network of banking services chettiars offeredwas indispensable for
development.
Hence, reservations of lands were considered as yet another strategy. During 1908
there were a considerable number of chettiar firms all over Malaya. Out of approximately
60,000 acres of cultivable land, only 15,739 acres was reserved to control the chettiars
acquisition of land. The reservation required the parties to ask for government consent
before it was sold to meet the debt on it.267 It committed the Government to repay the debt,
up to the value of the land immediately before it was made a reservation area. The Scheme
took no time to take a nose dive, because of its poor design. The procedure was complex
and a costly affair. Hence, the state council often allowed the chettiar to acquire a land in
case of default payment or it was sold at auction with a condition that the land to be resold
to a Malay again.
266
(H.Kratoska, 1975)
267
(H.Kratoska, 1975)
136
The other restriction thrown at chettiarsto control the rural indebtedness of the
Malays was “Usurious Loans Enactment” of 1919 and the provisions of the “Land
Enactment” relating to mortgages on land. The usurious loans enactment permitted court
to take action if excessive interest was slapped or the transactions were proved to be unfair.
Interest acted as the primary evidence to decide the level of “unfair” transaction.
Unfortunately, these laws enacted to keep the chettiar loans at bay, didn’t succeed up to
the expectations.
The biggest challenge in implementation of this act was often the debtor himself,
for one reason – he was ignorant of the laws passed on his favour and was not willing to
go to court for relief even if he knows the law. He instead, was contended with the
agreements with the chettiars in case of defaults. This was due to the British English system
and the natural ignorance of the rural peasants, who saw both the Chettiars and English as
people high above them, and Chettiars seemed to be more closer (might be because of their
Asian race) than whites, who looked more alien. More than that, Chettiars were seen as
saviors, since they issue currencieswithout a word, as and when required by the peasants.
Hence, in the view of Malays, it wasfair and justice if they take the lands on non-
repayment.268
In general, the British saw the Malay’s rural indebtedness as a failure and disgrace,
but for Malays borrowing money from Chettiars was the easiest option to get money. On
the other hand, for the Chinese, loans were for business but for the Chettiars, loans were
269
their business. Chettiars viewed the issue of indebtedness as part of their professional
consequence and not as a moral issue, whereas Malay Peasants saw usury as a moral issue
and not as indebtedness. In a country where these three races live together, that too with
268
(H.Kratoska, 1975)
269
(H.Kratoska, 1975)
137
these many differences in beliefs, it was not easy for the British to make them dance to
their tunes.
3.3.4 Acquisition of Land and Estates
As in any other place of their business, in Malya too, when the mortgage loans
wereunpaid, the lands fell into the laps of chettiar money lenders. But, here the lands were
also in the form of Rubber plantations. Unlike in Burma and paradoxical to thecommon
belief that the chettiars were not interested in owning lands than liquid cash, in Malaya,
during 1920s Chettiars utilized the opportunity of owning rubber estates for default loans.
By 1930, 242 rubber estates were owned by the chettiars.270They had well-organized
chamber of Commerce to protect their interests.271

It was estimated that during 1930s, Chettiars could have lent a total of $125
million.272 As a result of depression, theyalso acquired high volume of agricultural lands.
Most of these lands came through the default payments of small farmers. But on the whole,
it is believed that, due to economic depression in 1930s, chettiars suffered a loss amounting
to the volume of $120 million.273
270
(Mahadevan, 1976)
271
Govt. of India,(1933). Annual Report of the Agent of the Government of India in British malaya.
Calcutta: Government of India Press. (This might have been the result of the high returns
they received from the acquired plantations and estates or because of the need to invest the
excess profit. Again, this seems paradoxical, as they were used to remit all their profits to their
home town. Hence, it is a question to be still studied, to understand the factors that pushed the
chettiars to invest in an foreign land willingly).
272
Bella, C. V. (2014). Tragic Orphans: Indians in Malaysia. Singapore, Singapore: Institute of
Southeast Asian Studies.
273
(Umadevi Suppiah, 2013) The difference of money lent and loss shows $5 million, and hence
has a contradiction. If the land acquisitions were true, then that can’t be taken as loss. I was not
able to find a document which mentions the exact loss.
138
As the land holdings of Chettiars were increasing, following the representations
from the Sultan of Perak, the Colonial authorities passed the Small Holdings (Restriction
of Sale) Bill in 1931. The bill focused on the exclusion of the properties of Malay farmers
from foreclosures to Chettiars. Another bill – Malay Reservations Act of 1933 followed,
which ensured the land reservations against sale or escheat and in effect prevented the
disposal of Malay Reservation land to non-Malays. Clearly these two bills were targeted
towards the land acquisition of Chettiars and raised a debate in the Malay province.
3.3.5 Trade
The Malaysian scenario of trade and development was totally dependent on the
rubber and tin exports.The Japanese occupation during 1943-45 and the Korean War during
1950-1953 are the two major events that boosted the flow of exports of rubber and tin and
thus resulting in the faster economic development of Malaysia. Obviously, the big firms of
Europe like Dunlop and Guthries were the biggest beneficiaries of rubber trade.274During
this period, Nattukottai Chettiars who had now a large reserve of capital with them chose
to establish insurance, banking and other finance related companies which has always been
their forte. Interestingly, there is one account saying Chettiars were also involved in Opium
trade.275When their counterparts, the Chinese money lenders chose to risk their fortune by
setting up adventuring new avenues of industries, the chettiars who are by nature
adventurous, chose to play subtle.
Money lending slowly faded away into the background, due to the Moneylenders
Bill in 1951276 and Chettiars moved into Property –Ownership. The property –ownership
investments are a long term commitment, which will result in capital gains rather than the
lucrative annual returns in money lending. The safe-play phenomenon of Nattukottai
274
(Mahadevan, 1976)
275
276
139
Chettiars is again a main reason for this diversion when the entire country was open to
industry building and entrepreneurship opportunities were abundant.
It is also interesting to note that the Nattukottai Chettiars had been in the debtor list
of Chinese business men, issuing large loans to build new industrial firms. They financed
the Chinese to open tin mines277 and to buy over rubber estates from the English men278.
The question is why they themselves have not utilized the money to start up the industry
themselves. When enquired, members of “The Chettiar Chamber of Commerce”,
Kualalumpur have answered in an interview (1966) that money lending is safer than
investing in industry. “Chinese gamble while the Chettiars never gamble”279. As a
testimony to this phase, in 1970, while the Chinese controlled 22.5% of the share capital
of the limited companies in Malaysia, Indians held only 1% and Malays 1.9%. 280This may
be a resultant to the riots on May 13th, 1969. Worried about their unsecured future and
threatened by the violence, nearly 60,000 Indians returned to India immediately.281 The
number of Chettiars crossed the sea is not known.
Being the wealthy “rentier” class of Indians in Malaysia, chettiars were blamed for
not opening up industries to employ the “lost” Indian labourers282 in Malysia after the
colonial period. The labourer class and the middle class Indians who got migrated to
Malaysia during the British era, found it very difficult to survive in a place, which is no
277
278
(S.R.Sudhamani, Indians in Singapore, 1982, p. 90)
279
Laiq, J. (1974, October 26). By-Product of a Plural Economy- A note on the politics of the Lost
Indian in Malaysia. Economic and Political Weekly, 9 (43), pp. 1825 -1828.
280
Suryanarayanan, V. (1982). Indians in Malaysia- The Neglected Minority. In I. J. Singh (Ed.),
Indians in Southeast Asia (p. 38). NewDelhi, India: Sterling Publishers Private Ltd.
281
(Suryanarayanan, 1982, p. 44)
282
(Laiq, 1974)
140
more a province of British but a “country” now with its own ethnicity and rules, obviously
giving weightage to the uplift of their own people. Many of the Indian plantation labourers
lost the opportunity of citizenship just because they were ignorant and the superior classes
chose to return home. Hence, when compared to the Chinese upper classes who established
business industries and dutifully employed only Chinese and helped their survival was seen
far better than the chettiars in this particular issue.
3.3.6 Conclusion
It is quite interesting to learn the view of a Malaysian of present generation on the

issue. (in a blog spot titled as “an Uncensored History of Malaysia). It says,
“Chettiars are “friendly nice men usually carrying an umbrella and dressed in
white robe. It was the lack of the ability for arithmetic and managing finances or money is
the culprit that led Malays to be in-debt”283.
As of now, for many Chettiars, Malaya has become their country, settled there for
generations. But, still they keep their roots in Chettinadu, visit the native country for
festivals in their clan and village temples, conduct marriages in Chettinadu and keep their
heritage homes unused.
3.4 Straits Settlementsand Singapore
3.4.1 Introduction
In 1826 three settlements of Singapore namely Singapore, Penang and Malacca were
amalgamated and formed as Straits Settlements, acquired or established by the East India
Company. Labuan was added as fourth settlement in 1912. In this settlements Singapore
includes Christmas Island and coco keeling group and Penang includes the province
283
Mortalangel. (2010, February 1). An uncensored History of Malaysia. Retrieved February 3,
2016, from http://adifferentkindofmalay.blogspot.in/2010/02/uncensored-history-of-malaysia-
what-our.html
141
Wellesley. Till 1867 April, the control of strait settlements was with the Indian
Government284. Occupied by the Japanese in World War II, these settlements were
dismantled in 1946, thus Penang and Malacca added to Malaysia and Labuan is now called
as Sabah, which is also a part of Malaysia.285 The arrival of chettiars in Singapore
was early as 1820s, soon after Sir Stamford Raffles, founder286 of the Port city of Singapore
in 1819.287
Map 3-1: Straits Settlements and Federated Malay States
284
R.J.Jarman (Ed.). (1998). Straits Settlements Annual Reports 1855-1941. East and Southeast
Asia .
These 12 volumes brought out a lot of informationon the formation of Straits settlements from the
government records
285
Stratis Settlements. (2015). Retrieved 2016, from Encyclopedia Britannica:
http://www.britannica.com/place/Straits-Settlements
286
Sir Stamford Raffles. (2016). Retrieved 2016, from encyclopædia Britannica. :
http://www.britannica.com/biography/Stamford-Raffles
287
K.S Sandhu, A. (1993). Indian Communities in Southeast Asia. Malaysia: Institute of Southeast
Asian Studies.
142
3.4.2 Trade and Banking
Considering the location chettiars selected for their business and staying implies that
they were well aware of their foreigner status and their exclusiveness in social and cultural
habits. Their stay was closer to the port and they resided together for support. The choice
of location was because they were mainly working with traders and exporters, and
exchange of hundis was easier this way. Mostly they took the area of Market Street, a
central area in the commercial district which is essential for their money-lending business.
They were ready to move back anytime in the first phaseof their migration, if anything
happens worse in the political scenario. The Kittangis in the Market Street are still
remembered for the chettiar presence.
During 1825, Singapore was handling over three-fifth of the total trade of Southeast
Asia.288The geographical location of Singapore made it as an entry port point to the whole
of Southeast Asia within a short span of time. By 1870s, the chettiars financed most of the
opium trade in Singapore.They also financed the Chinese businessmen from Straits
Settlements to open up new tin mines in Malaya.289
During 1880s, the chettiars were strongly placed in the banking services of
Singapore, with the cooperation of the Singapore and Penang Branches of Chartered Bank.
Discounting of Hundisof the Chinese traders and purchasers of Opium were discounted
and all these acceptances were drawn at two or three months date.290 During this period all
the Promissory notes drawn by the Chinese traders were in favour of the Chettiar Bankers.
288
(Mahadevan, 1976)
289
(Mahadevan, 1976)
290
(Mahadevan, 1976)
143
Raman Mahadevan quotes Compton Mackenzie (1954)291 for the position of chettiars in
Straits Settlements. As per Mackenzie there was a steady increase of Chartered bank’s
rupee sales on Calcutta and Rangoon, drawn by the Chettiars. The chettiars who had money
laid down in India, Burma and the Straits looked for the favourable exchange rate and draw
the money to invest in the profited proceedings into other countries where they conduct
business or they simply remitted back the money to India to their home or to Burma, to
their firms, which was doing big enough business to pull in any amount of money.
As an advancement in their profession, chettiars started Joint stock Trading
Companies in all the three components of Straits Settlements – two in Singapore, three in
Penang and two in Malacca. In 1928, they opened up Chettiar Chamber of Commerce in
Singapore, as they do in every other place of their business. The Penang Chamber of
Commerce was opened in 1934.292
Later, during 1930s, along with the counterparts, Singapore too felt the economic
depression tremors, and as a result the repatriation pattern was evident here too. Now,
however, it is noticed clearly that, the Once – thriving Chettiar money lenders, “the poor
man’s bank”, are almost extinct in contemporary times.293
291
See more in Compton Mackenzie, Realms of Silver, One hundred years of Banking in the East,
London, 1954
292
(Mahadevan, 1976)
293
Bhattacharya, J. (2015). Beyond the Glitterati: The Indian and Chinese Jewellers of Little India,
SIngapore. In C. K. Jayathi Bhattacharya (Ed.), Indian and Chinese Immigrant Communities:
Comparitive perspectives. Singapore: Anthem press.
144
Figure 3-1: A Statue of Chettiar with his “kai petti” in Boat Quay, Singapore294
3.4.3 Conclusion
The scenario in Singapore was almost like its sister Malaya. Many Chettiars opted
to get settled and took their families from their native land. Many others returned with the
assets and started their much simpler life in India. Still some others continued to live the
same way, working in Singapore, leaving the family behind in India till last generation.
The Chettiar in Singapore had changed aspirations295in their successive generations, whose
education system have now taught them new avenues of employment and business. The
chettiar firms were seen in Singapore until 1970s. But, the Chettiar impressions are still
seen in many places of Singapore. The “Sri Thendayuthapani Temple” or otherwise
popularly known as “Chettiar Temple”, built by the Chettiars during 1859, was recently
294
Source: Martin Ebner Archive (Ebner, 2014)
295
(Takeshi, 2015)
145
announced to be the Singapore’s 67th National Monument and gazette by the National
Heritage Board of Singapore.296
3.5 Indo China (Vietnam) and Saigon (Ho Chi Minh City)
3.5.1 Introduction
Saigon is a city in South Vietnam. Chettiars, as adventurous as ever, in search ofnew

business place, moved here from Singapore. Unlike the other expeditions of Chettiars, this
was not under the British, but French. French Indochina (Union Indochinoise) comprised
of Tonkin, Annam and Cochin-China of Vietnam, Laos and Cambodia and was called as
French Protectorates since 1887, except for Loas, which was brought under in 1893.It was
named so by French due to the geographical location of the area, being the point of contact
of India and China.
3.5.2 Money lending in Saigon and Cohinchina
There were 110 chettiar money lending firms in Cochin China by 1930 and 340
Chettiars residing in the French protectorate including agents and other staff working in
the firm.297Madras Provincial Banking Enquiry Committee Report mentions the role of
chettiars in granting loans to the traders was on a big scale and the short term loans to the
296
Zaccheus, M. (2014, October 20). Sri Thendayuthapani Temple is Singapore's 67th national
monument. The Straits Times .
297
Pairaudeau, N. (2010). Vietnamese Engagement with Tamil Migrants in Colonial Cochinchina.
Journal of Vietnamese Studies, 5 (3).
146
Map 3-2: French Indo-China
agricultural sector was on the security of crop harvest.298 The land security helped the
peasants to secure loans for long term. The interest rates were as high as 15% to 25% per
month, which wascommon in chettiar loans all over Southeast Asia. When the economy
was booming, the peasants borrowed huge amounts above on their lands and harvest, in
order to increase their cultivations, relying on the yield to repay the loan. Chettiars were
believed to increase the interest rates, utilizing the opportunity of high demand for the
298
(Mahadevan, 1976)
147
loans. The farmers, who have already, took loans from the Sociètè de Credit Agricole, had
only margins of security and they were the first to fall out on a bad harvest.
3.5.3 Depression, Riots and Expulsion
The rural peasants, who were happy with the Chettiar loans to increase the
cultivation area once, were no longer in the position to repay loans in 1930s due to the
crisis, resulting in land alienation. The peasant of Annam range and Cochin China failed
to repay their loans, thus making the chettiars seize their lands for the bad debts. During
1930s chettiars were holding around 25% of the land in Cochin China.299In September
1932, Ar.M.Soccalingam Chetty, who was rich became richest by accumulating a fortune
of around 2-3 million piaster300, which is equal to 20-30 million francs,301 “the Pitilessly
seized property of an indigent Vietnamese.”302

When this created resentment among the Vietnamese, during 1933, a Government
Institution of Saigon, called as Long Term Credit Society, suggested for reductions of
debts, which was declined by the Chettiars. This resulted in the expulsion of chettiars from
Saigon. 303At first, it was reported as an expulsion caused because of alleged activities in
the politics of Indo-china, but the enquiry revealed that it was because they declined to
accept reductions of their debt suggested by a government institution called the Long –
term credit society. This society was trying as a mediator between the chettiar money
299
(Mahadevan, 1976)
300
South Vietnam money
301
A rough calcualtion based on 1930 exchange rates reveals the amount to be around 32 lakhs in
1930.
302
Gunn, G. C. (2014). Rice Wars in Colonial Vietnam: The Great Famine and the Vietminh Road
to Power. Maryland: Rowman &Little Field.
303
Chettiars Expulsion from Saigon - Alleged refusal to accept reductions in Debts. (1933, August
14). The Straits Times , p. 12.
148
lenders and the Annamite304 peasants. When some few chettiars refused the decision of
this society, they were expelled.
Interestingly, the leader who negotiated and represented “Chettiars” to The Viceroy
of Delhi, to the authorities in London and Paris for the reinstatement of those expelled into
Saigon was a non-chettiar – Sir A. Ramaswami Mudaliar305. It is also mentioned that His
Highness Agha Khan too intervened to solve the problem306. After negotiations the five
chettiars were allowed to return to Saigon. This caused stir in Paris and India for the
misleading reason stated on chettiars expulsion. But, however this incident created a kind
of insecurity in the minds of chettiars and started the phase of repatriation from Saigon.
Gunn (2014) looks this incident of expulsion as a necessary measure to “defuse the
situation”, taken by the French authorities who were “mindful of concurrent events in
British Burma”, where similar riots “occurred alongside a massacre of Chettiars”.307
Soccalingam Chetty was one among five chettiars who were expelled.
3.5.4 Chettiars – Villains and Heroes
Even though the chettiars earned a fortune in Saigon, some chettiars went bankrupt
during the depression. But due to their efforts and the law suits, some of their assets were
restored. But however, the number of firms was halved and came down to 55 and the total
credit came down to 20 million piaster in 1937.308But still they possessed 1/3rd of total rice
credit in Cochin China, which was over 6 million piaster. During 1940s it was said that
304
Annamites are the vietnamese from the Annamite mountain ranges, which runs through Laos,
Vietnam and Cambodia.
305
Rajah Sir Annamalai Chettiar's Statement in Kovilur Nattukottai Chettiars Meeting. (1930).
Tamilnadu, India.
306
(Rajah Sir Annamalai Chettiar's Statement in Kovilur Nattukottai Chettiars Meeting, 1930)
307
(Gunn, 2014)
308
(Pairaudeau, 2010)
149
half of Indo-China was indebted to chettiars and the outstanding loan amount was 9 million
piaster.309As the British tried to curtail the rural indebtedness in colonial areas, French
government too increased the credit for the rural areas to eliminate the land alienation. But,
again, as in the other South East Asian countries, the peasants themselves were not willing
to take loans from other sources but for chettiars. Chettiars remained as the reliable money-
lenders to large number of “improvident”310 landowners in Cochin China and Annam.
Vietnamese liked the chettiars for their simple living among them, but got thrown away by
the grandeur of the temple processions conducted by the chettiars with their god in the
silver chariot with gems studded jewels. The jewels and other assets in the Saigon temple
were estimated as 50 million Rs (Rs. 5 Crores) in 1971.311This invariably announced the
chettiar wealth accumulation to the Vietnamese. They appreciated chettiar loans and risk
with least security, but resented the higher interest rates and acquisition of lands. The
violence and resentment was in no way comparable to the riots in other Southeast Asian
countries.
A newspaper named as “Echo Annamite” mentioned the issue of chettiars312, but not
for their higher interest rates, but for to express the inadequate salary of government to the
civil servants which forced them to be debtors to the Chettiars! To quote Natasha (2010),
“This omission of Chettiars in Vietnamese responses to Tamil presence in this period
is even morestark when we consider that the newspapers’ land-owning readership was
reliant on Chettiar capital.”
309
(K.S.Sandhu)
310
(Gunn, 2014)
311
(K.S.Sandhu)
312
(Pairaudeau, 2010)
150
To mention further, it is stated that Chettiars “oversaw” the end of the political and
journalistic Career of a Vietnamese leader of the Minh Tan Movement, as at the time of
his arrest he was largely indebted to a chettiar named “Sp. Ar. Supramanian Chetty”313
But, in the land of Chettiars, the “usury” was not accepted and several points were
made to justify the higher rates such as “French were forcing Chettiars to pay the same tax
amount as earlier in the distressed period of depression”314 and the interest rates were lower
than the Chinese money lenders.
3.5.5 Conclusion
The common image of the Indians, particularly Tamils, in the Vietnam was not a
good one. They were treated as aliens for their “colour”. The problem that rose out of
Indian men asking for the hand of their women in marriage created a furor, added oil to the
fire already burning due to the land alienation of chettiars. Chettiars were depicted as
“Monsters”, “sucking blood of farmers”, “Vampires with ferocious appetite” shows the
intensity of hatred level on chettiars.315 The professionalism of chettiars in finding
remedies of default loans through French courts was seen as an act of “Colonised” and
“Coloniser” together working to squeeze Vietnamese.
As the antagonism grew, the “notoriety” Chettiars had no other option except to
turn their backs and head to their native. There are not so many Chettiars in Vietnam today,
but they are felt through the temples they built.
313
(Pairaudeau, 2010) It is mentioned as “Souna Parra Ana Sirra Soupramanianchetty”. Actually,
chettiars while pronouncing the initials (vilasm), as per the Tamil language rule, adds the term
“na” to every syllable. The letter “pa” in Tamil will be read as “pa na”. Hence, the author
obviously includes the speaking terms into initials while writing too.
314
(Rajah Sir Annamalai Chettiar's Statement in Kovilur Nattukottai Chettiars Meeting, 1930)
315
(Pairaudeau, 2010)
151
4 Economic, Social-cultural and Political Perspectives
4.1 Economic Perspectives
4.1.1 Multiplying money
Chettiars economy flourished because of one important reason – the multiplying of the
money. No matter, how meager the amount, the respect is same for the money, “money is
money”. According to the Burma Provincial Banking Enquiry Commission report, they
doubled their money and assets every ten year for the thirty year’s period of 1900- 1930,
for which the figures are available.
4.1.2 Assets and Investments
The once flourishing chettiars always kept a low profile as their unwritten practice.
But, the economical status of Chettiars elite group is still high, due to their intelligent
investment plans during their thriving days. The “Economic Times” tried to list out the top
10 wealthy chettiars during 2003. The findings were astonishing and the important point is
that all elite groups and families are cash rich and inherited a lot of land, coffee and rubber
estates. The top slots were Murugappa group and MAM. Ramasamy Chettiar group316.
Murugappa group has a number of companies under its banner - Carborundum Universal
Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS
General Insurance Company Ltd., Coromandel International Ltd., Coromandel
Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Parry
Sugar industries Ltd, Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt
(India) Ltd. Murugappa is now INR 269 billion Group and one of India’s leading business
conglomerates, comprising 28 businesses including eleven listed companies traded on the
316
Kumar, K. S. (2003, August 19). Chettiars reign where wealth meets godliness. The
Economic Times .
152
NSE and BSE, with a work force of 32,000 employees. 317The total wealth of the group is
estimated to be above Rs.1500 crores in 2003.318
The other major group- Chettinad group of Raja Sir Annamalai Chettiar’s family,
(First son Rajah Muthiah Chettiar ) has it in its credit companies in the areas of Cement,
and Silica manufacturing, Service providers like Construction, Transport, Steel
Fabrication, Coal terminal, power and Security and the group has a turnover of Rs.4000
Crores.319“The chettinad house”, the palatial estate of MAM.Ramaswami Chettiar
sprawling in an 70 acres land in Chennai is said to be of worth between Rs.1700 crores to
Rs. 2000 Crores320.Known for his love for horses and horse –racing, MAM. Ramaswamy
had a team of around 1000 horses, valued as Rs. 5-10 lakhs each.
The MA.Chidambaram Chettiar group, (Raja Annamalai Chettiar’s second son)has

companies in the areas of fertilizers, logistics, and Petro products. MAC group is one
among the top five industrial conglomerates in the country.321The group is under the
leadership of Ashwin Muthiah, the grandson of Chidambaram Chettiar. By 2003 the
networth was estimated as Rs.750 crore322.
317
Murugappa Group(2015). Retrieved Feb 29, 2016, from Murugappa Group:
http://www.murugappa.com/index_home.htm
318
(Kumar K. S., 2003)
319
Chettinad Group (2013). Chettinad Group. Retrieved from
http://www.chettinad.com/new/about.php
320
Sangeetha Kandavel, V. N. (2015, May 25). M.A.M.Ramaswamy's family feud turns
ugly. The Hindu .
321
Ananda, J. (2015, June 15). Charting the Chettiars: Raja of Chettinad to the Disowned
Son. The New Indian Express .
322
(Kumar K. S., 2003)
153
M.Ct. M (M.Ct.Muthiah Chettiar)Group (nephew of Rajah Annamalai Chettiar),
though doesn’t have any listed companies, they have inherited coffee estates and
plantations in Malaya which makes them cash rich.
The Karumuthu Thiagarajan group, run by his sons too hits the list of wealthy
chettiars with two listed companies doing successful business in the textile industry. The
turnover of the groups Thiagarajar Mills and Virudhunagar Textiles had aturnover of
around Rs.250 crores in 2003323.
The documentations of business industries and turnover of the companies are very
less in the case of Chettiars. The issue of identification as “Pure” Chettiars or “new gen”
Chettiars –who crossed the boundaries of the community by cross-marriages with person
of other caste or other religion - creates confusion in the community itself. The power of
money and influence makes the border invisible in case of wealthy chettiars and hence, the
data on the medium level chettiars and their business are to be done meticulously to
ascertain the economic status of all the strata of the community.
The overall economic status of chettiars as wealthy citizens had given them the
classification under the Government of India as “Forward” or “Other castes”, which means
that they are not eligible for any special quota.
4.2 Socio-cultural Perspectives
4.2.1 Introduction
The Nattukottai Chettiars have always shown a high level of rigidity in following the
cultural and religious practices. The traditions are followed for centuries except for a few
that were dropped or included during the important crisis periods like Great depression and
Burma breakdown. The important elements that comprise of the Social basics of the
323
(Kumar K. S., 2003)
154
Chettiar community were the lineage of nine clan temples, the marriage alliances between
the clan temple members, the adoption of son among the clan temple members, grouping
based on the occupation and firms and the religious and village temple affiliation among
the various clan temple members who lived in one village.
These factors that keep hold of the clan temple lineages as outer ring, families’ lineage
as inner ring and the unconventional or untraditional families those got out of the lineage
as an external space can be represented as the moving bubbles or circles. The situations
and environments of the society is not a static one but highly dynamic, and hence these
circles tend to move from their place to other, boundaries shrinking or expanding. The
fluidity of the interdependence of these factors is somewhat indeterminate. When it comes
to society and culture, the grey area between a community and a caste becomes dark. Caste
takes up the predominant place than being a community. As in any other community of
India, the evolution of the Chettiar community too gets stagnated in the name of Caste-ism.
Figure 4-1: Important Elements of Chettiar Society
155
4.2.2 Chettiars in Society and Chettiar’s Society
Chettiars are an interesting community which revolves around their nine clan
temples. These clan temples are their social pillars on which lies the entire networking of
this community. All the chettiars are registered under the name of the family head, called
as “pulli”. A boy when gets married, is registered as a head, a Pulli in the register.
Clan temples act as the population and marriage registry. Unlike in a normal census,
the chettiar registry maintains the names of “Pulli”. When a groom gets married, his clan
temple will be informed along with the details of the bride and her clan temple. The same
goes with the bride. The bride’s clan temple will issue a “certificate” to be adjoined to the
grooms clan temple register. On the day of marriage, the acknowledgement of the clan
temple is sent in the form of a flower garland and Prasadam.
No deviation is allowed; for example, marriage between the bride and groom from
same clan temple or bride or groom from any other community. The clan temple will not
register the marriage in these cases. The groom loses his chance to become a member (pulli)
of the clan temple and his lineage will be cut from the clan temple. His successors cannot
claim to be member any more in the clan temple.
The caste-conscious and clan-conscious community is facing adversity because of

this practice, as the youth is not clan or caste-conscious as in the previous century. Thus
the identification of the chettiars in these lines are done as “No.1” and “No.2” referring to
“asal” or “original” Chettiars and “Cross” or “new gen” chettiars (who crossed the
boundaries!) respectively.
The outer circle of other communities of the society, unaware of these differences,
treats both the divisions as Chettiars. The “new gen” chettiars, even though is not registered
in the Clan temple and doesn’t get “blessed” garland and Prasadam during marriage
ceremonies, still continue with the traditions as per the other division, identify themselves
with the clan temple, follow the rituals, and keeps up the marriage relationships among
themselves.As of now, the population of the second division chettiars are seems to be high.
The above cases testify the problems in the networking of the community which is
said to be one of the important factors for business success of the community. The business
156
cooperation among the chettiars stands out in the crowds of other money lenders in the
British period and the close knit-ness is gone now. The social well being of the chettiars
acted as the pivot for the business operations and the mismanagement of the same costs up
to loss of identificationas abusiness community in the present scenario.
4.2.3 Family
A chettiar family starts with a conjugal familycalled as “Pulli”, comprising with

husband, wife and their children. The joint family is the “valavu”, all the conjugal families
living under one roof. “Valavu” means the living area of the big house, the conjugal
families will have separate rooms from the hall. All the pullisor the conjugal families cook
their own food and leads an independent financial and occupational life, under the
surveillance and guidance of the head of the joint family. The ration for each of the
independent family will be issued by the head. Once, the head of the family dies, his sons
will separate from each other and will start his own joint family with his sons and their
family. This practice of independence is highly followed, that even a widowed
mother will not dine with her sons, instead, will cook her own meal 324 and live from her
assets.
All these “valavu” or joint families together are grouped and are part of “clan
relations” –“koodikirra pangali”.All these groups of clan relations together are the
population under one clan temple. Essentially, all the member of one clan temple is
brethrens by belief, as these clan temples were established by brothers. But, as the time
evolved and the population multiplied, it became unmanageable to invite all the “pangalis”
for ceremonies and occasions. Hence, the concept of grouping the “pangalis” came into
vogue and the term “Koodikira Pangalis” was practiced, which means those brethren who
324
Jain, L. C. (1971). Report of the Study group on Indigenous Bankers. Bombay:
Government of India.
157
attend family occasions. In present day, the practice of joint families are rare, but still all
the other practices of Pulli”, “Valavu”, and “Koodikirra Pangali”are all sustained.
When a son is born into a chettiar family, a certain sum is set aside. The sum is
usually invested in the family business, for the money to multiply and the interest
accumulates as he grows. The money and the boy grow together. This is practiced till date
in many of the chettiar families; sometimes the deposit is made in the form of jewels, as
the investment of money into business to grow is not an option now for those who don’t
do business.
Earlier along with the basic education of math and language, the children,
particularly male, were taught with hymns on Lord Siva, the Primary God of the Chettiars.
The important of them were Thevaram and Thiruvasagam.
The reasons behind this practice found after talking to many elders of the community are:
- The memory capacity of the child increased while he memorized the hymns, no
matter he understood the meaning or not
- Discipline and spirituality increases as the habit of reciting divine hymns
Until the male member of the family attains an age of thirteen or fourteen he is sent to
small schools, most often run on the “thinnai” or verandah of the teacher’s house. Then,
he is ready for entering into the training of trade. Theaccumulated sum in his name was
used for his business capital, when he started his own venture.
Usually, the training began with a relative’s firm, never in any other community
member’s firm, and not in their own firm. This is purposively done to avoid any leniency
he might get in the father’s firm. He is remunerated, taught with the basics of business and
when he is ready he takes off with his own firm.
These practices are not carried out nowadays as the occupations, education system and
social system have changed.
4.2.4 Marriage
Not all the Chettiar families had business firms, many of the chettiars worked for
wealthy chettiar firms. The skill and family background of the son is very important for
one thing – his marriage. The fact that has to be noted here is that during that period, the
groom has to pay dowry to the girl’s father to get her hand in marriage. The brighter and
158
smarter the groom, the lesser he has to pay. Hence, the sons were taught well to get married
to a good bride, more often with a financially equal status family. Jain mentions chettiar
marriages as not only a religious duty and a social function, but an occasion for economic
independence and liberty.325
It is the responsibility of the sons to support their father in marrying the daughters of
the house.But, long before the end of the colonial era, not able to find correctly when, but
somehow this system changed and dowry giving became reciprocal.
4.2.5 Reciprocated Dowry and its consequences
The practice of groom paying dowry to bride was an important factor for the big social
change in the community during 1900s. The maternal deaths rate was high during those
periods and hence chettiar widowers was a common phenomenon, who needed to remarry
but not able to afford for a second marriage as the dowry range was higher for a second
marriage. Hence, many chettiars chose to marry girls from other communities in order to
take care of their children and also had children from the second marriage. Duly, the clan
temple denied recognizing the children from the other community wife and thus a lineage
of “new gen” chettiars were created. Till 19th century, there were no cases or documentation
found on this issue. The elderly informants, who shared these information blames those
chettiars for breaking the community rule and for “spoiling” the pureness of the
community.
After independence, not for a defined reason, the dowry system got reciprocated and
the bride started offering dowry to the groom like many othercastes. The dowry system is
called as “seedhanam” or “Sthri dhan” meaning the bride to pay dowry to the groom. It is
enormous in the case of chettiar community, like other mercantile communities of India.
Some of the articles the bride’s family has to accumulate for the marriage are a certain
amount of cash, gold jewels, diamond jewels, stainless steel utensils, brass wares and
325
(Jain, 1971)
159
utensils, silver articles, clothes for bride and groom, house hold items etc. The tradition of
gold ornaments as investment and fixed asset is still practiced. One unique jewellery piece
of chettiars is the “Kazhuthiru”, a solid gold ornament meant for “thali”(mangal sutra),
made in pieces and tied with a yellow string . According to the respondents, there were
occasions of this necklace made out of “101”soverign of gold (808 gms) in elite families.
Figure 4-2: “Kazhuthiru”
4.2.6 Division of Assets
Another important part of chettiar families and business bonding is the way they
divide upon the assets on the eve of the death of the head of the family. Usually, the entire
family assets were divided into equal shares among the sons. The daughters were not
considered, the reason being they were married off with a fortune of wealth and jewelley
from the house, and traditionally the sons are the rightfull owners of the estate.
Essentially, the Chettiar families are Hindu Undivided family and the status of a
member is only acquired by birth or by adoption. Once a family is established, the jointness
of food and worship, the ownership of property, and a “coparcenery”326 is acquired by the
326
migrants in South East Asia: Nineteenth and twentienth centureis. In C. K. Jayathi
Bhattacharya (Ed.), Indian and Chinese Immigrant Communities: Comparitive
Perspectives (pp. 58-69). Singapore, Singapore: Anthem Press.
160
members by birth. This is usually consisting of son and grandsons (generally the male
successors). Thus, the properties handed over to them by generations are distinct as
ancestral property from that of the property each member earns of his own. The self-
acquired property is thus attached to the ancestral property of each member and passed on
to his successors, creating differences in the assets values according to the capability of
individual member.
The big palatial houses, given with the architecture which is very peculiar with one
big open verandah and living room, leading to smaller rooms for each son in no way can
be divided and shared. The living room is so common to all. Hence, usually the worth of
the assets were calculated and whoever wants the assets keeps them, and the others were
paid in cash by the one who takes up the particular asset. This, in a way, helps in keeping
up the legendry home with any of the family member and not sold out to outsiders.
If there was no consensus arrived at on who has to own the property, then the elders
from the community, particularly from the same Kovil(temple clan) called as ‘Pangalis”
will be the negotiators and decisions makers. The decision may be arrived at by lucky
draw.So many peculiar cases were brought up during the interview schedule with the
people in and around the Kariakudi town. While division of assets the big house is usually
kept as it is in the present scenario.
Any misbehaving was unforgivable, particularly inter caste marriages were not
allowed. If happens the lineage is cut and they were not considered as Chettiars anymore
and their children cannot marry from the caste.
Another prohibition was inter-clan marriages. No groom can marry the bride from
the same kovil or clan, as it is seen as a marriage between brother and sister, even though
they may not be really related by any means. It is assumed so, because the lineage of each
clan (kovil) comes from a band of brothers and whoever from that temple clan is considered
as brothers, even after centuries.Out of the nine temples, two temples- Iraniyur and
Pillayarpatti - are further considered as brother clans and marriages between these two
temples clans are also prohibited.
161
4.2.7 Adoption of Son
The Chettiar community has a unique practice of adopting a son in case if the couple
doesn’t have an heir or have only daughters. In order to continue the initials or name of the
family heredity a family needs a minimum of one son. But the adoption has some set of
rules like the boy should be from only the same clan temple and usually the son of the
brothers are preferred. Unlike in other communities, chettiars adopt even a grown boy. This
adoption of a grown son into a new family, keeps up the cordial relation between the
families through the boy, in many cases. Still the practice is in vogue and the advertisement
in the community magazine “aachi vandaachu” stands as a testimony to that. Obviously
the business ties between the two families grow a notch higher because of the new social
commitment between the two families.
When the 40 year old son of AM Murugappa Chettiar, A.M.M.Vellayan was shot
dead in Burma in 1945, the devastated AM Murugappa Chettiar still wisely decided and
requested his eldest son to adopt the second son of Vellayan.327 It is customary as the eldest
son AMM.Murugappa Chettiar had two daughters only. This helped the AMM family’s
unity and ensured the growth of all the businesses into a conglomerate as now.
But there are certain cases, where the concept of adopting a grown adult misfires.
The Rajah Sir Annamalai Chettiar family had faced the consequences of adopting
grownups for the two grandsons MAM.Ramaswamy Chettiar and MAM.Muthiah
Chettiar.Both of them are sons of Rajah Sir Muthiah Chettiar, and as they didn’t have
children, Ramaswamy Chettiar adopted Iyappan alias MAMR.Muthiah, at the age of 20,
and the recent family feuds brought the lime light to the Rajah family for wrong reasons.
This adoption of a son- an adult working in USA328–naturally found the adaptation little
327
Ramnath, N. (2011, November 1). A.Vellayan: As long as there is growth, there is no
problem. Forbes India .
328
TNN. (2014, August 27). When raja, prince cross swords. The Times of India .
162
tough and it was against the community rules, as the boy belonged to another clan
temple329, but due to the power and influence of the family, this was submerged in the
community circles. The efforts taken by Ramaswamy chettiar to disown his adopted son
didn’t succeed, and was the major torment in his last years of life.330The other problematic
adoption is of Kumararani Meena Muthiah, wife of MAM.Muthiah Chettiar. She adopted
a grown Mr.Annamalai Chettiar as her son and the Mother and Son were estranged and not
even in talking terms afterwards331.
Secrecy: “They say Freemasons are more open than chettiars”, to highlight the
secretiveness of Chettiars. The book keeping methods, the trade language, their absolute
low profiles and their calm and cool exterior reveals very less to any one from outside. A
special deputy Collector was appointed during 1950s for the assessment of tax of the
Chettiars, as their accounting methods were complicated.332 Most of the studies conducted
on chettiars looks into the aspect of their living style in Southeast Asian Countries can
conclude that they are secluded. Arasaratnam comments that “Chettiarsare anintrovert
group, separatist in outlook, having their own exclusive organizations and religious
institutions and leading an isolated social life”333
329
Ananda, J. (2015, june 15). MAMR Muthiah, the Second Adopted Son in the Family
Who Failed to Fall in Line . The New Indian Express .
330
Babu, V. (2015, December 3). With MAM Ramaswamy's death, who will control
Chettinad Group legacy? Business Today .
331
(Ananda, 2015)
332
(Jain, 1971, p. 31)
333
Bella, C. V. (2014). Tragic Orphans: Indians in Malaysia. Singapore, Singapore:
Institute of Southeast Asian Studies.
163
Superstition: It is hard to generalize the superstitious beliefs of chettiars. It is
believed that the chettiars will throw away appointments if they see any bad omen while
starting from home. It is accepted by more than half of the interviewees. It is also said by
many elder chettiars that, when Rajah Sir Annamalai Chettiar was searching for a suitable
place for establishing a university, the sight of “Garuda” (Vulture) was the deciding factor
for the location of the Campus for Annamalai University.
On the other hand it is also mentioned that the Madurai temple “netta Kopuram”
plastering work was completed by a courageous chettiar, not caring the tales of unlucky
tagged to the renovation.334
Frugality: The one characteristic all the interviewees accepted was the frugal and
simple living of chettiars, even now. The high paradox is, the same chettiars spend
stupendously on marriages, charity and building temples. A respondent during the
interview stated that the chettiars assign their 1/4th of earnings to fixed assets, 1/4th to liquid
assets, 1/4th to business and 1/4th in hand.
Hospitality: Chettiar hospitality is applauded in many instances and always merits a

special place in the studies. The marriage ceremonies are examples of grandeur of feasting.
Exceptional cases of lavish and royal hospitality were seen during the hay days of Rajah
Sir Annamalai Chettiar’s period. When Lord Wellington was Governor of Madras in
1920s, the tea parties thrown by the Raja Sir to the Lord and Lady Wellington were note
worthy. It opened many commercial doors for the Chettiars, as the Lady Wellington was
highly influential with the Lord Willington, and she favored the chettiars.
334
Thurston, E. (1909). Castes and Tribes of Southern India (Vol. V). Madras, India:
Government Press. ( Source indicated as - from Gazette of Madura)
164
Till date, the Chettinadu hospitality is mentioned as one among the best in the country.
But there are other curious pieces of information like that the first meal of the guest is free
and the other meals will be charged and debited in his account in Colonial period335.
4.2.9 Seclusion/ inclusion with other communities:
“It is true that Chettiars don’t mingle with other communities” told one respondent, but
based on the observations of the researcher, the “mingling” or “socializing” concept is
relative and based on the extent of socializing of other communities. When compared to
other communities of chettinadu, chettiars do live a little secluded life, preferring to
socialize among them. This is found in the area of Chettinadu, and in case of chettiars living
outside the boundary and in metro cities, it is seen to some extent. InBella’s opinion,
Chettiars genuinely identified with the broader Indian community in Malaya due to various
reasons like the great tradition of following Hinduism, being religious, educational and
cultural endeavors and philanthropy336.
It is to be understood and accepted that the philanthropic life style of chettiars of

building temples wherever they conducted business has brought them closer to other Indian
communities, as most of them were following Hinduism. Even though in some cases they
built separate temples for them and other communities, in the villages, the other community
members seems to be contended with their nobility and accepts the separation without
antagonism. This practice was not practically possible in other countries and hence, the
temples they built in Malaysia and other countries were common to all the people. This is
one point were they mingled with others. Apart from this window, the Chettiars were
335
Mentioned in the Edgar’s note. When cross checked with the informants, some say it might
have been true in old days when there were transaction between firms, which is common with
all the families of the relatives, and hence it was possible to debit the account. But, now, the
practice is not followed. On the other hand, even thought the hospitality is highly applauded,
the guests too doesn’t visit the relatives without prior information or permission.
336
(Bella, 2014)
165
secluded and closed community- nice, respectful and kind, but does not allow closeness to
others.
In 1900s, there was a designated person called “vairavi”, who would be the one
point channel for chettiars towards other communities. Vairavi is essentially from other
community called “pandaram”, those who work for the temple. “Vairavi” is thus a temple
servant, who played the role of messenger of inter-community of chettinadu. He brought
cooks, servants, Agents( for business) and any other employees from other communities
whenever required for the chettiars. Thus, the connections and socializing between the
chettiars and other communities are limited to a considerable extent.
Another example on how the people of other communities look on the chettiars is
the case of “Kampung Chetti” in Melaka, Malaysia. This enclosure of “Chettis” does not
indicate Nattukottai Chettiars of Chettinadu but Devangam Chettis of Chennai. This group
of Chettis are in Malaysia from 1700s and they have other communities living with them
close like Paduachees, pandarams, Mudaliars, Pathars and Konars, all different
communities of India. They have richly merged bloodlines extending upto Sumatra, Java
and Indonesia. When asked whether there is any possibility of Chettiars of Chettinadu
being their part, their response was “No, they are different, they never married local
women”. 337
Hence, it is observed that the chettiars for generations chosen to maintain their
seclusion to the extent possible and adapts themselves according to their place of living
with whatever possible socializing among themselves.
337
Gantzer, H. a. (2013, January 5). The Curious case of the Malaysian Chittis. The Hindu
.
166
4.2.10 Community Organization and Associations
The chettiar community has shown a classic organizational practice from the period
documented. The business conduct, networking, movement to places, employment
methods, social organizing, practicing of rituals are all examples for this organizing skill.
As a community, they had shown unity and obedience. They have maintained their
population details and records through the temple registry and also by taking census based
on business places, villages, clan temples and “koodikirra pangalis” or the group of clan
members. There are various exhibits to showcase the meticulous work done by the chettiars
at various points of time to keep a count and control over the population. A census book of
1920 based on Clan temples is maintained in the Kovilur Mutt museum. There are many
booklets printed by chettiars of different clan temples groups to list the names, address and
phone numbers in this century. A snap shot of one such booklet printed by the chettiars of
Devakottai with the details of their clan temple name, their village home address and
present address is given below for example.
Figure 4-3: 1920 census based on nine clan temples338
338
Document courtesy: Kovilur Mutt Museum
167
Figure 4-4: 2006 census of Devakottai Chettiars 339
The Kinship understanding is to be mentioned, which stands as a strong factor of

the community. The great success of their Southeast Asian business ventures were mostly
attributed to their kinship and networking. To quote Rudner’s words, “it is impossible to
understand Nakarattar business practices without understanding Nakarattar
kinship.”340While Rudner attributes the success of chettiar to the caste organization and
Markovits in his argument states that this is a rare case in India, as chettiars had the
advantage of congruence of caste and locality.341 But, even though both the arguments are
earning their weight in their own course, the locality of chettiars converged at one point
was not a coincidental occurrence. Till they moved out their families to their place of
occupation after the Independence, they have kept themselves together out of their own
coalition. If we look back at the history, there were cross roads for them to settle in different
places. The invitation of Pandya King to his Kingdom was accepted on one condition that
they will move together from all the four streets from Chola country. It is this instinct of
togetherness is that kept them networked with each other even now under the banner of
clan temple or family or village or marriage alliance or any such factor.
339
Census Record courtesy: Kovilur Mutt Museum
340
Rudner, D. W. (1994). Caste and Capitalism in Colonial India, The Nattukottai
Chettiars. California, USA: University of California Press.
341
Markovits, C. (2000). The Global World of Indian Merchants, 1750-1947: Traders of
Sind from Bukhara to Panama. Cambridge: Cambridge University Press.
168
4.2.11 Community Decisions and Obedience
During 1940s, when the entire community was suffering a huge loss from the
money lending business outside India, they understood that their lavish spending on
festivals and occasions are taking a toll on their already weak financial position. Hence,
the village elders took resolutions to stop the extravagant spending on occasions. These
resolutions342 were printed and circulated to all the members of the community and strictly
followed. Some of the “low-down” version of rituals mentioned in the resolution of
Puduvayal Nagarathar during 1952 (Nandana year, Panguni Month) are as follows:343
 The occasion of child birth and girl children attaining of age

 Kaapu kattu pudumai, maru pudumai and sweekara pudumai
( )(the celebrations on welcoming
a child into the family)
 Finalizing of marriage alliance
 Occasion of marriage
 Sreedhan in Marriage (dowry)
 Food expenditure in marriage and other occasions
 Bride farewell from mother’s home
 Medicine giving ceremony on the eve of conceiving a child
 Inviting the pregnant female member of the family for delivery and
dropping her back at in-laws home
 Toys giving ceremony to the new born child (for 2 years)
 The subscription to be paid to the village on each occasion
342
See more for the various base of these resolutions mentioned in Chapter 2 of this thesis under
the topic “The Transition” in The Independence Phase.
343
Pudhuvayal Nagarathar. (1952). Puduvayal Nagarathar Teermanam. Puduvayal:
Nagarathar.
169
 The money and other materials to be given and taken from the relatives
 To leave the child on the first day of school
 The gifts to be given to the teacher of the child
 The ceremony of accepting diksha from the three mutts of the community
 The diamond jubilee (60 years and 70 years) marriage ceremony (sashti
aptha poorthi & sadhaahishekam)
 For house warming ceremonies
 on the occasion of deaths and the rituals related to that
 any other common festival of the village
The Associations of Chettiars are an important factor in keeping them networked

and united, as small groups. The various divisions based on geographical location of
business, clan temple and its divisions, occupations and village base are some of the
examples of forming a chettiar association.
The contents of Annual Report of the Nattukottai Nagarathar’s Association, Madras

for the year 1956, give the glimpses of the nature and purpose of the Association. The
various resolutions based on the political environment of 1950s are discussed and the stand
of the chettiars clearly mentioned in the report. In any of the major towns and cities of India
and major capitals of the World, there is probably one Chettiar Association. The keeping
up of the network among themselves seems to be an important concept inthe socializing of
the chettiars. As examples, two of old association facts are given below.
4.2.11.1 Chettiar’s Chamber of Commerce, Malaya
The Chettiars Merchants’ Association in Malaya was formed in 1933, by the efforts
of O.A.R. Arunachalam Chettiar.344 Apart from the Merchants association, Arunachalam
344
Brown, R. A. (1981). The Indian Minority and Political Change in Malaya, 1945-1957.
London, UK: Oxford University Press.
170
Chettiar was active in the Indian Independence League and was a founder member of the
Malacca Congress in 1946. Chettiars association of Malaya established the Chettiar’s
Chamber of Commerce in Kaulalumpur.
4.2.11.2 Chennai Nattukottai Nagarathar Association
This association was established during 1920s. The yearly subscription of this
association was 12-0-0. One representative from this association was sent to the Legislative
assembly of Chennai. Sir Raja Annamalai Chettiar was elected member during 1930s.
4.2.12 Women’s role in the Community and Business
As any typical Indian community, till 1900s the Chettiar women were not
encouraged to pursue higher studies or allowed freely to take up risky ventures, even
though they have shown keen management acumen in finance and investments. Chettiar
women are simple from the start and seem to be so even in the present scenario.
Chettiar women are as thrifty as men. From the day one, there are no exceptions for
this fact and this is no understatement. The documents and data pertaining to 1800s – 1950s
clearly infers that the women played an important and vital role in the chettiar’s business
successes.
From the historic period women of chettiar community weave baskets345 with dried
and neatly cut palm leaves and coconut leaves. They practiced it not only to avoid idleness
but made a point of earning by selling these baskets. Modern days brought the substitute
of plastic wires in the shape and size of cut palm leaves and the baskets also got a new
look. These baskets called as “Chettinadu kottan”346 has recently acquired the
“geographical indication” (GI) tag.
345
(Thurston, 1909)
346
These “Kottan” or baskets are used to carry various items and is important for the gifting ritual
in Chettiar marraiges called “vevu eduthal”.
171
Figure 4-5: “Chettinadu Kottans”347
What makes this habit curious to look deeply and study is the small amount,
sometimes tiny when compared to the earnings of the family male members. Still the
women worked so hard to weave baskets and sell them for meager amounts, and the smaller
amounts are accumulated and invested in the family business in their account. The interest
accumulates and the women have their own share of money in the business.
When the husband is away on business, the wife takes charge of all the family
matters. Financial management of the house, decisions on family matters are all handled
by women. Whenever, there is an important decision that needs husband’s concurrence or
suggestion, the wife makes it a point to contact him overseas through letters and decides
there upon.348 This context is seen even now as the women of the community are stronger
347
Courtesy: Kovilur Mutt Museum, Photo: Punitha.A
348
(Thurston, 1909)
172
and don’t fuss much about the additional responsibility they have to undertake in the
absence of their husband who works abroad. During the interview schedule, when asked
about this characteristic, to a woman who suits to this situation, answered calmly that “it
runs in her blood”.
In previous decades, usually the daughters-in-law of the house needs to take care
of only her family and hence, the major decisions of the joint family don’t come to her. But
now in the absence of joint family system and exposure and education of young women
makes it easier to handle the family matters from the start as nucleus family. A widow,
even though she has sons living in the same house, cooks and takes care of herself alone.
She was treated as half pulli.
As justification to the first statement of this topic “women as thrifty as men”, the
statement of an old female interviewee may be noted. She is 78 years old, lives in the family
house in one of the villages of chettinadu and her sons have factories in Chennai and is
wealthy enough to lead her life luxuriously. As a hobby to while away her time, she collects
the flowers (kanakambaram which is to be tied with a thread and used to beautify girl’s
hair dressing) from her small garden, sundakkai and murungakkai from the trees and sells
them to the neighbourhood women. She does this for years, for a very meager amount and
paradoxically her contributions to the nearby temple as charity and donations are far larger.
When pointed out, she said, “business is separate and charity is separate. Selling flowers
and vegetables is business, our tradition. I can’t forget that, ever, whatever may be the
income, it is still income and I respect the money even it is a single pie”. Chettiars this
concept of respect to the money is their base for absolute frugality and of course, may be
their secret of wealth making.
4.2.13 “Nagara viduthi”
The concept of building choultries called as “nagara viduthi” is an important social factor
of chettiars. The culture of making the guests comfortable has lengthened itself to build
choultries in various destinations, particularly the important places of worship in the
country.
173
The choultries usually comprised of private rooms, an office, dormitories, small
kitchen, dining hall and the unique “patthi” model349 of chettinadu architecture. Big
choultries had a temple or Sami arai in-built, and they were called as
“NagarattharMadam”, meaning Nagarathar Mutt. During colonial period, the choultries in
southeast Asian countries not only provided boarding and lodging, but also offered other
additional services to a new comer like mailing services, assisting in clearing baggage from
the local customs, making travel arrangements etc. In short, a nagara viduthi in a town
means that, if a chettiar new to that place can be assured of, as if going to a relative’s house.
The choultry in Kasi called as “Kasi Nattukottai Chettiar Satram” was established in the
year 1863. The Allahabad nagara viduthi was built in 1891. The nagara viduthi in Gaya
was established in 1884 in a rented building and built in 1911.In Kolkatta it was established
in 1921. In Nasik a viduthi was built in 1865.350 In Penang, Malaya, the nagara viduthi
was built in 1932.351
There are chettiar choultries in almost all important towns and cities of the country,
and a list of “nagara viduthis” is given in the appendix. The chettiar associations maintain
these choultries under a trust formed for it, and keeps the details of other choultries to assist
the members who needs to travel to new places. Many of these choultries are built in the
heydays of the chettiars. But, even though the flourishing days gone by, the practice of
349
“patthi”or “valavu” is a long verandah running along central courtyard, a open-to-sky area in
centre of the hall called as “muttram”, which was used for conducting ceremonies and water
harvesting. The patthi will be a little elevated from the open area and was used a living area.
These verandahs will be having line of rooms. The “patthi” is still divided into two areas called
as “mel patthi”, which means “high corridor” and “kil patthi” which means lower level.
350
Sri Kasi Nattukottai Nagarathar Satram. (2010). Retrieved April 6, 2016, from Sri Kasi
Nattukottai Nagarathar Satram: http://kasinagarathar.com/varanasi7.html
351
Penang Nagara Viduthi. (n.d.). Retrieved April 6, 2016, from Natukottai Chettiars
Temple: http://pttemple.com/penang-nagara-viduthi/
174
building community choultries is followed till date and many new choultries are built and
old choultries get renovated in the country continuously.
Figure 4-6: Rameswaram Nagara Viduthi
4.2.14 Social Life of Chettiars in Southeast Asia
Even though Chettiars lived for a long time in Burma, they were very strict in
following the traditions of the religion. There was only minimal socializing with the
Burmese. They didn’t try to adapt to the language, food or culture of Burma. As for the
data gathered by the researcher and through the review of Literature there were few
marriages happened between the Chettiars and the Burmese woman, in most of these cases,
the Chettiars were already married and had a family back home in Chettinadu. Hence, the
Burmese family thus formed was left over there itself. Two views are found in this culture
of marrying Burmese women. One is the mention of Burmese women using their charm
and setting trap for wealthy Chettiars to get married to them, and once married will never
allow them to go back to their country.352 This was written as a warning to the young
members of the community to keep distance from the Burmese women. The other
information was given by one of the young informant. His grandmother is a Burmese
woman, who married the Chettiar, left everything behind and settled in Chettinadu. He
352
Iyengar, R. (1924). Rangoon Burma Top Nondi Sindhu. Chennai.
175
sounded very proud to be a grandson of such a strong lady. These two versions indicate the
intra racial marriages that happened in this period. However, as per the Chettiars tradition,
inter-caste marriages were never allowed and hence, the names of the children born out of
these wedlock was not included in the temple register.
The long journey of Chettiars and Burmese together was very pleasant at the first
phase and they maintained elusive but cordial relationship. As the Chettiars were god
fearing and spiritual, built temples in Burma and Burmese the Buddhists, were known for
their religious tolerance and hence, there was no reason for ethnic conflicts.
4.2.15 Spirituality
Chettiars are fervent saivaites, wearing Rudraksham bead around their neck with a
cotton thread or gold chain. The loyalty towards saivam is still seen and the practice of
wearing rudraksham is also continued till date, if not by all the male members, atleast the
old members.Chettiars are known for their religious contributions like building,
maintaining and renovatingSivan temples. During 1900- 1909, renovation and repair of
Sivan temples in Chidambaram, Madurai and Tiruvannamalai were undertaken by the
chettiars with lots of monetary contributions353.
The Chettiars used devotion and temples to maintain network and cohesion among
their communities to conduct the business.354Being highly spiritual, they have followed
the habit of keeping aside a part of their business profits to their deities as share. They have
shown their altruistic nature in the development of temples and their maintenance by
donating happily with utmost sincerity and “Bhakthi”. This is evident through the grandeur
in architecture of the temples they have built and renovated, and the day to day
353
(Thurston, 1909)
354
Halabi, A. (2003). Asian Merchants and Businessmen in the Indian Ocean and the China Sea.
Journal of World History, 14 (1), 95-98.
176
maintenance. Hence, it can be understood that, it is their rich spiritual heritage that had
made this community render contributions selflessly to the society.
The building of temples in wherever land they set foot in is a curious characteristic
of Chettiars. Temples are used for community business meetings, social gatherings,
celebrating festivals and conducting ceremonies apart from the primary objective of regular
worship. The amount of money, time, energy, and effortofchettiars put into the building
and maintenance of Temples is enormous.And, this is continuing for centuries, till date.
The present day chettiar magazines like “aachi vandachu”, “Poocharam” etc are
continuously publishing the temple renovation and replenishing works undertaken by the
Chettiar associations. If they are measured and statistically documented, the researcher’s
hunch is that, it will not be any less than the previous centuries’ contributions. The
magnanimity of this effort and money they put in are the evidence for their sincere
following of the spiritual tradition.
The building of temples for business orbusiness conducted in the temples they built
– either way paves way for the speculation that it is not any newer for the community which
houses a small temple room in each traditional house, called as “sami arai”, meaning “the
room of god”. Unlike many other communities of Tamilnadu, the chettiars live in the same
house, along with their family god and goddess. Hence, it can be understood that the
Kittanigis (Business places) too housed the Gods, and hence becomes the temple. The older
version of Kittangis, that is, those built during their first years of expeditions to Southeast
Asian countries had the first floor for temples and ground floors for business. As the
business and the fortune grown, the separate places were affordable and thus grand temples
were built. The Sri Layan Siddhi Vinayakar Temple in Singapore is very popular among
the temples they built abroad and one of the oldest. The original idol was brought to
Singapore by a soldier of Indian National army during the World War I. He handed over
the idol to Chettiars of Singapore on his return to India and Chettiars duly built a small
177
temple and in 1920 with great effort and money put in, they built a new temple, in which
is now the deity “Vinayakar, not only worshipped by Indians, but also by Chinese.355
As a testimony to the continuation of the spiritual thirst and building temples to this
day, stands the stupendous works of Dr.Alagappan Chettiar of Kanadukathan. Educated in
Shantinikethan and worked on a high profile at United Nations, Newyork, Dr. Alagappan
founded the “The Hindu Temple Society of North America” and today there are 700
temples across USA.356 The serene “Arupadai Temple” in Chennai with replicas of all the
six houses of God Muruga is another one of his great contribution.
Another curious point is that, the God Murugan is treated as a mandate partner to
any business and the presiding chairman for any business meeting. This gave a share to the
god and temple from each business transaction and hence the flow of cash was not a
problem for building temples. This kept the community network strong, with an invisible
spiritual string in the name of temple tied the entire community in each town of a new
country.
Any business day of Chettiars money lenders in olden days will start with “puja”
or worshipping the God and ends with the same. Any business day will start with a
transaction of money transfer to the account of God, a small amount but, accumulating
every day.357Takeshi strongly mentions that “the overt emphasis placed on their religion
cannot therefore be overlooked or ignored”. The same way, the success attributed to their
business as a community with such a close network, should also be seen in the light of the
spirituality and the outcomes of practicing it on a common and compulsory basis.
355
Gopal, R. (2014, September 5). A Multi-cultural Link. The Hindu , p. 3.
356
Venkataramanan, G. (2014, November 21). Icon of Secularism. The Hindu - Friday Review , p.
4.
357
(Takeshi, 2015)
178
The conduct of puja and the first transaction to god is till date followed in many of
the chettiar firms.
4.2.16 Philanthropy
The philanthropic characteristic of chettiars is a true mark of their identity. The

contributions of the chettiars can be broadly categorized into two – Religious contributions
and educational contributions.
The religious contributions are the historical practice for them, from the daysof
Chola country where it started with donating oil to the lamps of the temples 358. Later when
they moved to the arid region of Ramnad district, they were instrumental in digging wells,
ponds and water harvesting channels. There are hundreds of “ooranis”(big ponds) still live
in chettinad standing tall with stone inscriptions carrying the name of the chettiar who
contributed for the digging of the pond359.
Listing of chettiar contributions to the temple renovations in Tamilnadu is a

herculean task. K.V.Ct.V.Venkatachalam Chettiar during 1985 out of his curiousity visited
456 temples and estimated the monetary contributions of chettiars to be around Rs. 4.5
Crores360. Out of the temple contributions, consecration (kudamuzhukku or
358
Pandurangan, A. (1997). Kalvettukalil Chola Varalaru- Padhinoraam Nootrandu. Pondicherry
University, Tamil. Pondicherry: Pondicherry University.
359
The researcher witnessed many ponds during the field visits. Many such ponds were maintained
in good condition by the ellite chettiars of the villages even though they reside somewhere else.
In one instance, near a pond called “Visalakshi oorani” (named after the donor’s wife), a
villager belonging to other community sitting on the steps of the pond, (who misunderstood
that the researcher is from the family of the donor of the pond, as the researcher was clicking
photos of the name board and curiously wathcing the pond) said voluntarily “after the leaving
of the chettiars from the villages, there is no one to care the ponds and the welfare of us.
Younger generation chettiars like you from your family should return to the villages and help
us like your fore fathers did”)
360
Unpublished report of a chettair from Kovilur Mutt Library
179
kumbabhishekam) of a temple is a highly dedicative, cost consuming and tiring effort and
Chettiarsdo this task every twelve years to all the temples they worship, including the clan
temples, village temples and the temples associated to them in the past like Poompuhar
Patinathar samy temple. Some of the recent consecrations taken care of totally by the
chettiars and the details are given below for sample361:
 1978 - Kovilur Temple

 1982 – Vairavan temple
 1985 – Illupakudi temple consecration
 1985 – Nithyakalyani Kailasanathar temple
 1985 – Ilayantrangudi Sundara Vinayagar temple
 1989 – Kazhanivaasalkudi temple
 1990 –Iraniyur temple
 1991 – Nemam Temple
 1995 - Poompuhar Pattinathar temple
 1996 – Vairavan Koil
 2002 – Mathur Ainootreeswarar temple
 2003 – Ilayaathnagudi Pattinasamy temple
 2006 – Velangudi Kandeeswarar temple
 2007 – Iraniyur temple
 2008 – Poompuhar Pattinathar temple consecration
For “their” temples, chettiars usually doesn’tutilize the contributions from other
communities and any money donated by others are duly dropped into the “undial”, the
361
These data are collected from the collection of consecration Souvenirs from Kovilur Mutt
Library, Roja Muthiah Library and personal collections of few respondents.
180
donation box and not shown in the expenditure accounts of the ceremony. The entire
expenditure is borne by the chettiars and as far as possible they keep it among the clan
temple members. The chettiar contributions in building and renovating other temples are
published as a book named “Nagaratharin Arappanigal”362in 2001.During 1800s, the
endowments were drawn from a unique account of common fund from the chettiar firms.
The money collected in the common fund comes through the 5 percent cash back from the
shipping companies, given as incentives to the chettiars, for using their ships for bulk
export and import of rice. It is said that around Rs.20,000 was collected each year and the
fund was used for temple renovations and to build choultries in North India.363
During their stint in Vietnam, the chettiars gave generous donations to renovate the
mausoleum of General Lê Văn Duyệt in the late 1930s364. Lê Văn Duyệt (1764–1832)
served as Emperor Gia Long’s viceroy in the south, before the region came under
centralized control. This contribution indicates the chettiars respect for fellow human belief
even though of other faith and even if it is a mausoleum, which is not a practiced concept
of this community.
Apart from building temples, schools, colleges and universities as part of their
philanthropic activities, the curious case of a chettiar, MA.Chidambaram, (son of Rajah Sir
Muthiah Chettiar), taking effort to build a cricket stadium is the testimony for their
diversified channeling of charity. For his efforts in building that cricket stadium in Chennai,
the stadium is named after him – MA Chidambaram Stadium.
362
See more for chettiar charity works in - Valli, N. (2001). Nagaratharin Arappanigal. Karaikudi:
Krishna Publishers.
363
Sridevi, S. (2005). Local banking and material culture amongst the Nattukottai Chettiars of
Tamil Nadu. New Delhi, India: JNU.
364
Gunn, G. C. (2014). Rice Wars in Colonial Vietnam: The Great Famine and the Vietminh Road
to Power. Maryland: Rowman &Little Field.
181
4.2.16.1 Practice of “Magamai”
As mentioned in the previous chapters, “Magamai” is a definite percentage of

commercial profits earned by the Chettiars to be set aside for charity. Out of this, certain
types are set aside only for the temples. It is a unique attribute of this community, that
wherever they go to conduct business, from Saigon to Cochin China, they have built a
temple out of their business earnings. The “magamai” contributions helped the upkeep of
these temples. They had the practice of collecting “magamai” wherever they set foot for
business. That’s how they were able to build temples in all the places of their business.
Every year according to the needs of the temple, they conjointly decide upon their
contributions based on the size of the business. In Burma during 1850 - 1930s, generally
one rate fixed for loans and another for acquired property in lieu of debt. For example, the
Burma Provincial Banking Committee Report says, 14 annas per Rs.1000 on loans are kept
aside and 9 annas per Rs. 1000 for property taken over debt, the value of the property being
reckoned always as the principal money outstanding of the debt365. It is further mentioned
that, all gave their contribution honestly without fail, and a failure means boycott by others.
As a close-knit community, living as concentrated groups in villages back home, this
boycott punishment is a real scare and hence, no Chettiar money lender evaded this
contribution.
The second type of “magamai” was derived by a sort of cess upon certain kinds of
business done. Every year during accounts closing the amount received from one shop to
other and the amount paid to one shop from the other is calculated and the difference in
every pair is taken as base to calculate “magamai” at the rate of quarter of an anna per
Rs.100. The receiver of the total amount pays this to the shop that paid to them, and the
shop which received this “magamai” use this for charity. Apart from this, gifts are paid
365
182
from time to time based upon the needs of the society. Some examples mentioned in the
BPBEC report are
- Gift promised in May 1930 by the Rangoon Chettiars to the fund for relieving
sufferers in the pegu earth quake
- Collections for the gift to Rangoon University
- Kanbe school endowment (A school built and run by the Nattukottai Nagarathar
Association, for the Nagarthar boys in Kanbe, Burma. The residential school was
specifically designed to help the chettiar boys learn Values, Spirituality, Maths and
Physical Education)
- Apart from these group contributions, individually chettiars give freely for charitable
purposes.
- Above all, it is said that Pagodas were built in Burma with gold plates on them.366
The contributions they have made in India during 20th Century, with the huge fortunes
they earned in Southeast Asian Countries are also to be studied for a thorough
understanding of their change in the course of charities. Temples of 19th century were social
places for community meetings and sharing and maintaining social values. But, the turn
of 20th century opened up other necessities of the society like educational institutions,
especially for girls, Research institutes, Health care places, Rural development centers and
digging up of tanks in the water scarce Chettinad. Hence, the sensible Chettiars, by that
time winding up their business firms in other countries and settling back in the home town
due to repatriation of British from Asian colonies, turned their interest of charity towards
education. The big chettiar firms are pioneers in setting up schools and colleges in their
home town. Even though it would be a herculean task to enumerate all the donations and
366
Win also mentions that these plates were robbed by the members of Burma Socialist Party
during 1940s to meet with the expenses of the party.
183
charities made by the chettiars to the education field, the paper tries to bring in huge
contributions, leaving small ones by the smaller firms and individuals, due to the
limitations of time and cost.
4.2.16.2 CSR of Raja Sir Annamalai Chettiar Groups
We can say that Education is the thrust area for Nagarathar contributions, next to
spirituality. Tamil music was highly patronized by Raja Sir Annamalai Chettiar. His son,
Raja Sir Muthiah Chettiar was honoured with a title “Tamil Isai kavalar” – meaning
protector of tamil music- for his flawless contributions towards the development of Tamil
music. Raja Sir Annamalai Chettiar’s contribution towards Education development of
society is tremendous. He is visionary and a strong believer of education’s role in free
India. His first venture is “Sri Meenakshi College” in 1927. Later, the additions of Tamil
college and a Sanskrit college adorned Chidambaram, a temple town in Tamilnadu. Further
the additions of College of Music and Oriental Training College lead the path way for
expansion. With these colleges as nucleus, Annamalai University was formed. The
splendid development of the University today inspires us and makes us think about the first
big step by Raja Sir and his Son Muthiah Chettiar.
4.2.16.3 Dr.Alagappa Chettiar
An adorable philanthropist, Alagappa Chettiar is another icon of Chettinadu. It

takes a lot of courage to give as much money as Mr.Alagappa Chettiar was able to donate.
He was a business tycoon, but the money earned came back to the development of rural
Tamilnadu. He gave even his palatial house, where he resided, to convert into a women’s
college in Kottaiyur near Karaikudi, his place of birth.
184
Alagappa University is his contribution to the Karaikudi, a small town of Chettinad.
The other notable educational contributions367 from this noble person are
 Alagappa Chettiar College of Engineering & Technology (ACCET) at Karaikudi,

Tamil Nadu. (Now an autonomous government institution)
 Alagappa Primary School, Karaikudi, Tamil Nadu
 Alagappa Montessori School, Karaikudi, Tamil Nadu
 Alagappa Model Higher Secondary School at his birth place, Karaikudi, Tamil
Nadu
 A ladies' hostel at Vepery, Chennai
 Foundation of an engineering college at Annamalai University, Chidambaram,
Tamil Nadu
 Foundation of a college of technology at Madras University, subsequently named
Alagappa Chettiar College of Technology, Guindy, Chennai
 A donation to establish the South Indian Educational Society at New Delhi in 1948
 A donation to establish higher education in Malaysia
 A donation for publishing Tamil Kalanjiyam (Tamil Dictionary)
 A donation for geological research by the Travancore government
 A donation for indigenous medicine research by Ernakulam Maharaja College
 A donation to fund students from Kochi, Kerala to study abroad
 Funding the morning food scheme for Kochi children
 The installation & development of Tamil Department of Travancore University.
 A donation to the Lady Doak College at Madurai
Apart from these contributions towards educational development, he also has donated
for establishing a maternity hospital and childcare centre in Kochi, Kerala. He donated for
the development of the township infrastructure of Kottaiyur, Tamilnadu, an Indigenous
medicine Research by Ernakulam Maharaja College, a fund for Students of Kochi to study
abroad, and a fund to establish South Indian chamber of commerce in Kochi, Kerala.
367
Padma Bhushan Alagappa Chettiar. (2010). Retrieved 2016, from Alagappa
University:http://alagappauniversity.ac.in/quick_links/about_founder.php, (Dr.Alagappa,
www.alagappa.org)
185
The compassion of Dr.Alagappa Chettiar is not only for the people of his place of
birth, but from the above information we can understand that he cared about the societies
where he ran his business, even if it is a foreign country. The contributions he made in
Kerala and Malaysia are fine examples for this.
4.2.16.4 Murugappa Group -AMM Murugappa Chettiar
The late chairman AMM Arunachalam best summed up the Group's philosophy in
community service:
"The Murugappa Group believes not only in value-added business but also in
discharging its responsibilities to various sections of society and in providing opportunities
to learn, contribute, advance; recognise and reward initiative, innovativeness and
creativity. We believe in not only making our customers delighted but the community
around us also delighted, by established service-oriented philanthropic institutions in the
field of education and medicare." 368
AMM Murugappa Chettiar group of companies (Murugappa Group) are carrying

their philanthropic activities for generations. The Murugappa group follows the community
tradition of “Magamai”, spending a part of profit towards community and social
is
development. One percentage of profit after Tax forwarded to AMM Foundation, the
initiative of the group’s NGO activities. AMM foundation runs two higher secondary
schools (government aided), one in Chennai and another in Chettinad. A polytechnic
college serves for the suburban Chennai students.
In the Health care area, AMM Hospital, from 1924 is to be noted for the service it
is rendering to the rural people in Pallathur, Chettinad. Apart form that, Sir Ivan Stedford
Hospital, a Hospital with all modern equipments for surgery, is a boon to the suburban
368
(Murugappa Group, 2015)
186
Chennai people, for whom Government Hospital with all the amenities is a little far away.
Valliammai Hospital in Kanyakumari district, Tamilnadu is another contribution from this
group to the society. Murugappa Group focuses its Corporate Social Responsibility also
towards Research and development. Murugappa Chettiar Research Centre(MCRC) is
another bench mark of Murugappa Group in the rural development sector, designing simple
technologies for the use of local artisans.
It is worth noting here that all of the outcomes of charity are not named after
AM.MurugappaChettiar and his family, as usually seen in other cases. But, a hospital is
named after anEnglishman -Sir Ivan Stedford, to recognize his donations and to appreciate
his partnership with the group. Similarly, the school run by the trust is named after Sir
Ramaswami Mudaliar, who was a noble man and guiding spirit for Murugappa Chettiar
and was instrumental in introducing the joint ventures with foreign companies for the
group’s initial Tube Investments Ventures. This unique characteristic is seen as a gesture
of nobility as the action speaks more than name.
There are many more educational institutions and schools run by the trust formed
by the chettiars like the Thiagaraja College in Madurai, and listing would be out of the
perspective of the study and hence not delved deeper. To conclude the topic, it would be
apt to quote the words from an century old book “Southern India: Its History, People,
Commerce, and Industrial Resources369”,
“The spending of lakhs and lakhs of rupees year after year on the
renovation of time-worn temples and in the construction of new ones, and
the revival and maintenance of institutions which have had their origin in
369
Wright, A. (1914-1915). Southern India: Its History, People, Commerce, and Industrial
Resources. London: The Foreign and Colonial Compiling and Publishing Co.
187
prehistoric times, have, from time immemorial, been the exclusive
privilege of this community”
4.2.17 Conclusion
Sometimes, just a small look back into the background of our values system may
inspire us to look forward. It is human tendency to forget the path we have traveled. Along
the path, we deviate, enter new path, new values, new life style, and new business system
and so on. Perception also grows and changes. It is our responsibility and duty to see to
that, that all these changes are towards the improvement of humanity and to make the earth
a better place to live. Business is an occupation for survival, if anyone is fortunate to make
money out of it, the self-less nature should be turned on, and that is what is understood
from the above perspectives.. From the activities of altruism mentioned above the
following values are perceived as their community values.
1. Religiousness and spirituality is well balanced with modern life styles and treated as
the basic string to keep the community intact.
2. The importance of education is well understood and thrust is given to that area
3. It is well understood that the altruist activities know no boundaries. As per the ancient
tamil literature hymn “yaadhum oore yaavarum keelir” (meaning “all the places are
same and equal) Chettiars philanthropy is wide spread beyond frontiers.They have
treated even the places of business in foreign countries with respect and it is testified
by the temples built over there.
Apart from these, a common characteristic of the community to learn is the treatment
of success and failure. They stand back together again after every major problem and
disasters -from the Tsunami hit Puharto the the dry land, from dry land to swampy forests
and wet lands in Southeast Asia, and from there to various places in the world now –the
unity counts. They earned a lot, and lost a lot in many incidents of history, but still they
stood back. When this was discussed in an interview session with a group of Chettiars, a
chettiar aged 87, said in tamil “dharmam talai kakkum”,Meaning “charity will save the
head”, which seems to be true in their case.
188
4.3 Political Perspectives
4.3.1 Colonial Phase
Chettiars have been influential with the rulers of the place of their business is
undebatable through the various historical evidences and studies. The crossing swords with
Chola king in the legends is one example. During the colonial era, the chettiars are noted
for their influence with the Raja Setupatis, (Rulers of the small kingdom of Sivaganga and
Ramnad Distrit). The acquisition of villages and taluks by chettiars were seen in 1800s for
non-payment of loans by Raja Setupatis. In 1860, 24 villages were leased out to a chettiar
of Devakottai370 for his grantingof loans to the Raja Setupathi, who was unable to pay the
growing peshkash demands and to meet the expenditures to maintain the Royal status. The
Chettiar well aware of the vulnerability of the Setupathi that it will be practically not
possible for the setupathito pay interest or to repay the loan in cash. And as per the
expectation of chettiar manipulations, in 1870, setupathi has to give two more taluks and
5 divisions to few chettiars to get more loans. In 1889, the total debt was amounted to
Rs.3,50,000 and in 1892, it is said that a chettiar possessed 255 Villages under his control,
as recovery of loans. In 1896, the 24 villages were given permanently to one chettiar named
Ramasamy and officially instated as “Zamindar of Devakottai”, and by that time he had
40,000 acres of wet land and 60,000 acres of dry land along with his 24 villages371.
Similarly, in 1897, the Zamindari of Andipatti was sold by the Government to the
S. Rm. M. Chidambaram Chettiar, elder brother of Raja Annamlai Chettiar. Later, it
370
(Sridevi, 2005)
371
for more details see (Sridevi, 2005)
189
descended to his son S.Rm. M.Ct. Pethachi Chettiar. There are few more chettiars who
acquired Zamins in 19th Century372 in various districts of Tamilnadu.
If we look into these closeness to rule and acquisitions of Zamindaris, it is to be

understood that, the underlying need was the dominance of trade of rice and to be dominant,
the closeness to the throne becomes must. Hence, the chettiars have followed that. In case
of acquiring Zamins, it is only a few chettiars’ thirst to acquire more than money and trade
and hence cannot be generalized as chettiars were interested in political roles.
4.3.2 Phase of Independence Struggle
Struggle for Indian Independence is aperiod which marked the various important
attributes and characteristics of the traditional trading communities, who have been in trade
and merchandise for ages particularly under Kings and Kingdoms just before the English
invasion. The support and standoff they took has to be seen with a special focus as these
communities are tuned for generations to put their business good first above anything else.
Birla’s devotions towards Gandhiji and his interest to safe guard the businesses 373 at the
same point is a classic example for the dilemma and transitions of these business men went
through during the independence struggle.Birlas words “having to defend Bapu before
English men and English men before Bapu” explains this phenomenon. The loyalty was
split due to various reasons like
 To maintain a conducive environment for business

 Patriotism
 The undeniable charisma of Gandhiji
372
See more in Mahadevan, R. (1976). The Origin and Growth of Entrepreneurship in the
Nattukottai Chettiar Community of Tamilnadu 1880-1930. NewDelhi, India: JNU.
373
190
 The undeniable attraction towards the western technology and opportunities for
new business
 Business methods of west
 Keeping their age old tradition of nearness to the rulers – be it the King or English
rulers or Congress
During 1870s and 1880s, the entrepreneurs felt the British were better.Dadabahi
Naoroji once told “we were comparatively happier under the British rule”374.It is only from
1928, capitalist classes were favouring nationalist movement.As there were not much
studies on the south Indian Business men’s part in the holistic picture of the nationalistic
movements, it becomes mandatory to understand the stand of the North Indian business
men to draw the status of their south Indian counter parts.
The Political awareness of these businessmen is also understood by the notable

businessmen contesting the elections in 1937, and with two notable winners -one from
Tata’s and the other from Walchand’s in North India.Even though there are contributions
coming from business communities to the Independence struggle, Gandhiji and the
Congress, in many places it had some hidden agenda. Gandhiji, a person with foresight,
never expected much from the Indian capitalists and preferred the congress funds to come
from its supporters at the grass roots. The close associate of Gandhiji GB Birla himself was
not able to convince Gandhiji to act according to the notions of Indian business groups375.
The business communities of North India were threatened by the national movements
on the line of declining businesses, and it should be understood that they were not against
374
Piramal, G. (1991). Entrepreneurs and Political Awareness: A Study of Bombay's Business
Groups. In D. Tripathi (Ed.), Business and Politics in India: A Historical Perspective (p. 136).
New Delhi, India: Manohar.
375
Kumar, K. (1991). Big Business and the Peasantry. In D. Tripathi (Ed.), Busimess and Politics
in India (pp. 268- 281). New Delhi: Manohar Publications.
191
independence struggle. The friendly relationship of the Capitalists with the British on the
one hand and their growing influence in the Congress on the other remained a constant
factor in the freedom struggle. As true business men, they put their business interest before
anything else It is evident by the following statements.
During 1940s the capitalists were confused or self centered. Lala Shriram’s statement
of “tanks, guns and lorries” should go through the town often to keep the resisting people
in check and the instances of Congressmen buying hundis (Rajaji from Capitalists like
Birla, mortgaging of estate by Rajendra Prasad to Birla) are examples of the influence of
the business men over the party men.
Being in south, the Madras Presidency and the business communities were not
playing an important role equivalent to the Northern and Western Indian business
communities. The Madras Chamber of commerce was dominated by the European business
houses like Arbuthnots, Binnys and Parrys, until 1920s376. The other business men in the
picture of south Indian commerce were the Nattukottai chettiars, Komatti chettys of Andhra
Pradesh, Muslim traders of North Arcot region, Nadar Merchants, Kalladaikurichi
Brahmins and Sourashtrians of Madurai.
Chettiars were not often seen in any leading positions deviating from their business
occupation. The exceptions were very few cases and one among them is the Raja Sir
Annamalai Chettiar Family. Raja Sir Muthiah Chettiar was one of the members along with
376
192
G.D.Birla, A.D. Shroff and othersin the apex body of the All Policy Committee during
1943.377
In the eve of Burma’s separation from India, the Nattukottai Chettiars side was
clearly indicated through the Rangoon Chettiars Association (Nattukottai Nagarathar
Association). They were also supported by some of the groups in Burma like All Burma
General Council. The interest shown by the chettiars cannot be perceived as their interest
in Politics, but was of course of the capital invested in the Burmese lands.378
4.3.3 Southern Indian Chamber of Commerce
When Swadeshi movement gained momentum, “Southern Indian Chamber of

Commerce” was established in May 1909, with over one hundreds of best businessmen of
colonial Madras. But only 8 members were chettiars out of the total 110. The European
dominated Madras Chamber of Commerce had Annamalai chettiar as a prominent member.
In this Chamber, he was not a member. It might be due to two reasons – first, His business
interest spreading outside India and his interest in Chettiar Association related to business
andsecond, his association with the influential English authorities and his hesitation to be
identified with the Swadeshi movement.
But later on, in 1931, Annamalai Chettiar gathered the Chettiar businessmen, into
SICC(Southern Indian Chamber of Commerce) and at one point of time more thatn 60%
of members of SICC were chettiars. This was of high relevance because only SICC and
Nattukottai Nagarathar Association had the advantage of representation in Madras
Legislative Assembly during that period. Hence, as already the NNA(Nattukottai
Nagarathar Association) was under the influence of Annamalai Chettiar, now SICC also
377
Chattopadhyay, R. (1991). Indian Business and Economic Planning (1930 -56). In Business and
Politics in India - A Historical Perspective (p. 327). NewDelhi: Manohar.
378
Editor. (1930). Seperation of Burma. Dhanavanikan .
193
was dominated by him. But in the whole picture, the chettiars were more dominant in the
political scenario than any other business community of south India. This lead to the
formation ofAndhra Chamber of Commerce in 1934, and the reason stated was “the SICC
has become a mere adjunct to NNA”.
Naturally, the dominance of elite “Madras” chettiars as the face for the whole
chettiar community created resentment among the chettiars in the chettinadu and to
condemn the “omission” of small scale and medium level entrepreneur chettiars, they
conducted a meeting in Karaikudi in 1936. The meeting declared NNA an unrepresentative
body and urged the Government to make the reserved seats in Madras legislative assembly
and Corporation open for the whole chettiar community.
Among the total number of 215 seats of Madras Legislative Assembly in 1950s,
two seats reserved for the Indian Commerce Sectorand one of those two was for The
Nattukottai Nagarathar Association. Raja Sir Muthiah Chettiar contested and won the local
elections in Ramnad District under this. Mr.P.Chidambaram, Former Finance Minister of
India, is the noteworthy politician form the community in the recent times, and
interestingly, he is the grandson of the Raja Sir Annamalai Chettiar.
To conclude on the chettiar attitude towards politics, the following quote suits better:
“Chettiars are the most unlikely people to interest themselves in
anything but money, let alone politics379”.
379
Mr. N.A Perumal, an Indian on Mission of American Newspapers’ comment on the incident of
Chettiars expulsion from Saigon, charged with alleged Political activities.
Chettiars Expulsion from Saigon - Alleged refusal to accept reductions in Debts. (1933, August
14). The Straits Times , p. 12..
194
5 Conclusion
5.1 Discussions – Business Perspectives
5.1.1 USURY - Criticisms and Crucifications on Chettiar Interest rates
The chettiars are far more remembered in the history of Burma and Ceylon than the
history of Tamilnadu or India. There is no study that elucidates the growth and
development of Modern Burma without mentioning the Chettiars money lending. But, as
much as remembered and mentioned, it is more of accusations and crucifications of
chettiars for their “Usury”. One accusation that still lingers before the chettiars is, their
charging of “higher rate of interest” during their money lending stint.
Usury of Chettiars pulls a long demanded look into the issue. To understand how
they are depicted in the pages of history during their flourishing period in Burma and other
Southeast Asian countries, the following excerpts from various studies are given below:
Edgar Thurston, who pioneered the Caste studies of southern India wrote as follows
in 1909:
”Owing to their wealth and their money lending, the Nattukottai
Chettys have been called the Jews of South India, but their kindliness and
charity deserve more recognition than this description accords380”
Sir Harcourt Butler, Governor of Burma in 1927 said that
“without the assistance of the chettiar banking system Burma would
have never achieved the wonderful advancement during 1900 to 1920s. The
Burmans of 1930s were wealthier than he was 25 years ago, and for this
state of affairs the chettiars deserves the thanks of Burmese381.”
380
Press.
381
Turnell, S. (2005). The Chettiars in Burma. Macquarie University Research papers- Faculty of
Business and Economics .
195
The testimony given bya Karen382 witness to the Burma Provincial Banking
Enquiry Committee, 1929.
“Tersely and pointedly speaking, Chettiar banks are fiery
dragons that parch every land that has the misfortune of coming under
the wicked creeping. They are a hard-hearted lot that will ring out every
drop of blood from the victims without compunction for the sake of their
own interest…the swindling, cheating, deception and oppression of the
chettiars in the country, particularly among the ignorant folks, are well
known and these are, to a large extent, responsible for the present
impoverishment in the land383”
Cady in his book “History of Modern Burma” states that
“their(Chettiar’s) organization was efficient and internally honest”.384
Sir James Scott accuses the Chettiars as follows:
“the appearance of the chetty element in the trade upset

everything. They are charming men of business and know all about
bulling and bearing, and all the other civilized expedients of trade. Poor
“jack Burma”, listless and good-natured as he is, would never have
thought of such things himself; hapless is the man, Burman or
382
Karens were an ethnic group of Burma
383
384
J.F.Cady. (1959). History of Modern Burma. Cornell.
196
Englishman, who has dealings with the fat, shaven-headed Madras
money-lender.”385.
He further says that the chettiars hovers around the paddy fields, watches the
Burmese plant and harvest, fixes the rate and all but takes the money himself.
Sean Turnell, who has contributed many studies in this subject, mentions that
“a proper functioning financial system could have provided better

solution perhaps for Burma’s long-term development, but Burma did not
have such a system, then or now. Easy scapegoats for what went wrong;
the Chettiars merit history’s better judgement”386
Jews of South India, Villains, Usurers, Fiery Dragons, wicked creepers, pot bellied
demons, scapegoats, are some of the adjectives given to chettiar money lenders by the
people of Burma and Ceylon during their Business in colonial era.
In case of Malaysia, the lookout is different. The Malay blogger Mortalangel compares
Chettiars of Malaysia to today’s Ah-longs387 who throws red paint on the house of people
who doesn’t pay back loans on time. He mentions
“chettiars were instead very kind and soft spoken nice people who understood the
clients conditions and really wanted to help them during monetary needs” .
The opinion of the Scholars and authors who studied the role of chettiars in Burma
often faced contradictions
 due to the loyalty towards the country they belongto
385
386
(Turnell, The Chettiars in Burma, 2005)
387
Ah Long is a term for illegal loan sharks in Malaysia and Singapore. They lend money to people
who are unable to obtain loans from banks or other legal sources, mostly targeting habitual
gamblers.
197
 due to the non-availability/ under-availability of detailed studies of chettiar
operations or
 got carried away by the age old hatred on the money-lenders.
But, it is interesting that, even those accuse them of usury didn’t forgot to mention
or deny the contributions of chettiars in the development of lower Burma, Malaysia and
Ceylon.Win, in his book “A History of the Burma Socialist party (1930-1964)”, accuses
chettiars for the exploitation of the native peasants,but, again he explains in the same
paragraph the undeniable role of chettiars in the development of lower Burma.388
The money lending operations benefitted chettiars to a great extent monetarily and
there is no fact to deny that. But, how come the operations benefitted them so much when
there were other players too operating in the same sector – is a question to be analysed
before answering the higher rate of interest.
Chettiars were able to attract and retain peasant clients than the Burmese and
Chinese Money lenders due to one major reason – lower interest rates389. Chettiars were
able to provide lower interest rate because of their influence with English Banks and the
loans they acquired at lower cost.
On the other hand, according to Siegelman (1962)390, even though the chettiar rates
were lower, still it exceeded the profits that could be obtained by the rice harvest of the
peasants. Hence, it is to be understood that if, a comparatively low rate chettiar loan
exceeded the profit of the crop, what was the alternative financial option left out for the
388
389
390
(Rudner, 1994, p. 81)
198
peasants?. Burmese and Chinese money lenders charged still higher and the English banks
were not open for common peasants. And in any case, if the peasants had not borrowed to
increase thearea of cultivable lands, the British Colonial growth would have staggered
which they would not have allowed. Either ways, it seems to be a problematic scenario,
simply because all the provinces were under greedy British colonialism. Hence, all the
points converges towards the ruling British, who should have controlled the situation,
rather than encouraging the one sided development. An article in Dhanavanikan argues
that 24 percent interest rate charged by Chettiars are far more less than the 300 percent
profit earned by the Englishmen391.
Sean Turnell’s interesting analysis on the accusation of higher interest rates throws
some light on the dark corners of this issue. According to him, the maximum reported rate
of interest of chettiars are not more than 25 percent that is for unsecured loans only, where
the risk rates were higher too. The loans on security of lands, issued to peasants were less
than 12 percent and this should not be judged with the modern rates of money lending. For
the mentioned era, the Colonialperiod, the rates in question were low. He further compares
the “true Usury” loan in Burma, called as “Sabape”, loans granted by Burmese land lords
to Burmese tenants, which had an interest rate ranging up to 150 to 220 percent392.
The well conceived and neatly operated “hundi” system of indigenous banking
methods were also widely commented for their credibility and hence, was not legally
approved during the colonial period. The major part of Chettiar transactions was in
Hundisand the legal un-acceptance proved as a major hindrance for Indian money lending
system including the chettiar business. Rudner slashes away the argument as “stereotypic
391
(Editor, Dhanavanikan, 1931)
392
Turnell, S. (2007). A "Wicked Creeping": The Chettiars in Burma. SEAP Bulletin .
199
views about Indian bankers… the British and British-trained juristsnever really
comprehended the systematic operation of Indian financial institution”393.
5.1.2 Rural Indebtedness
The peasants of Burma as well as Ceylon and Malaysia took loans not only for
farming, but also for their family need, festivals, buying clothes for celebrations etc to meet
the expenses before their harvest period. Added to this burden, they had to pay a capitation
tax in cash to the British Government. In case of any calamities like flood or drought they
failed to repay their debts.394 This added upon their burden for the next year of harvest and
at one point they stood in the position of losing their land. Hence, it is to be judged not only
basing the poor economic status of the farmers, but also the mismanagement and planning
of funds and failure of British rulers to support farmers during calamities. But in the case
of Burmese exploitation, the rulers- British- themselves are accused of exploitation and
they focused on their benefits and not on the petty problems of poor peasants, which is
obvious from the 300 years of colonial history. The chettiars thus framed as scapegoats395
getting victimized for being loyal and acting as the middle men for British rulers. To quote
the then Prime Minister of India Jawaharlal Nehru “these issues are the bad result of
colonialism”.396
393
(Rudner, 1994)
394
(Win, 2008, p. 5)
395
(Turnell, The Chettiars in Burma, 2005)
396
(Win, 2008, p. 220) When the border issues and Chettiar owned property issues in Burma were
discussed between the leaders of the two nations, Nehru responded with these words, as
mentioning that both the countries has seen the worse of colonialism.
200
5.1.3 Insider’s Perspectives
In a short fictional story written on Chettiars by the acclaimed writer Aikkan of

Tamilnadu, an impoverished chettiar in Tamilnadu who was badly in need of money
refuses to take a loan repayment from an old debt from his father’s business in Burma. He
denies on the basis of his father’s Accounting Journals, stating that if it was a debt, his
father would have entered in the journal and it should have been a donation. He further
states, chettiars don’t take their donations back. This story exhibits the image chettiar
community holds in the society.
Another interesting viewpoint is that “chettiars does not regard usury as a sin”. 397
Contradictory to that, in an interview session, the researcher came through two interesting
criticisms. One is from the female member of the community, an “aachi” aged 65. The
content she shared is as follows:
“My father worked in Burma and came to India during Japan bombings during the
world war II walking all the way from Burma to India. We were such a wealthy family. We
lost everything after that, as there was no other occupation found suitable. All the wealth
drained in rearing the big family. Our elders think that it is the curse of the poor farmers
of Burma who lost their lands and felt cheated by chettiars”
The other old aachi, aged 72, said “ aadikku thai pathu maasamnu kannakku
ezhudhi setha sothu” meaning the tamil months “aadi” and “thai” comes in sequence of
seven months, but written in the account books as 10 months, and interest charged for more
period than necessary.
These two open statements (which is very rare with chettiars and their loyalty and
secrecy) gives us a clear view of insiders perspectives against the view of externals - “until
397
(Thurston, 1909)it’s the comment of Mr.P.R.Sundara Aiyar
201
1900s the good faith and honesty of chettiars are proverbial, and are even now
conspicuous398”.
Many of the Chettiars and Chettiar women, wanted to suppress the negative side of
the communities’ business practices, not wanting to be the one who tarnished the glorifying
image of the community in the outside world. They want to keep all their short comings
among themselves, by crucifying, commenting, judging, finding fault and cursing their
own actions without any hesitation among themselves. This characteristic was often
observed by the researcher. When confronted with questions about the community in open,
they talk only about the glory and nothing else.
Hence, it can be considered either they didn’t realize usury is a sin or it is not an
act of usury at all as depicted by others.
To summarise, it is understood from the above analysis that chettiars were very
strict in their occupation and there was no charity in the money lending operations. They
were not willing to leave a single penny which is rightfully theirs. On the other hand, they
were ready to donate without a second thought huge amounts of money for temple
renovations, building new temples or educational institutions. Hence, we can generalize
that they had a value line drawn between their profession and personal feelings. They were
kind and altruistic but displayed opposite behavior in profession.
5.1.4 Criticism -Cooperation with the Colonial government
It is often mentioned with a tone of sarcasm in the literature that chettiars were hand
in glove doing /exploiting the Burmese with the colonial government.As a matter of
discussion, it is to be analysed with the traditional background. From the ancient period,
the vysias were accustomed to acquisitions of various kings on countries. In order to
survive and continue their business, they were used to be the consort of any government
398
(Thurston, 1909)
202
that rules the country. The tradition can be seen all over India all through the history.
Hence, the three hundred years rule of British also had the same practice. Further, it is not
only chettiars, but also one can see that Birla. G.D was the chief negotiator between Gandhi
congress and British399.
The economic development of country relates with the business men and hence, the
development during British period owes to these business men too.
On the other hand of discussion, at the extremity of the independence struggle,
many chettiars like any other business men in the country supported the congress. For
example, the researcher came across a case of a chettiar400 who converted his well
established shop into a “Khadhi” shop to support Gandhi knowing full well of his closure
of business in the hands of British. In one of the nine clan temples of the chettiars, which
had a reconstruction and consecration (Kumbabhishekam) during the independence
struggle, to the wonderment of the researcher, Bharat mata and Gandhi with “raatai”
(spinning wheel) carved in the ceiling. For a community so into the clan temples, this
depiction is an extreme exhibition of patriotism. Hence, it can’t be generalized that the
chettiars were totally supportive of Colonial rule. It was the VaisyaDharma and the love
for the sustainability of business that made all the business communities of India to get
along with the British for a certain period.
399
400
He was then called as “kadhar kadai” Lakshmanan Chettiar and known by the nametill date
203
5.1.5 Financial Cliques401
The Nattukottai chettiar business groups are compared with the Japanese
“Zaibatsu” or financial cliques402 by Ito. He finds these groups similar to Japan’s Mitsui
and Mitsubishi combines. This concept was propounded on the basis that the chettiar
business houses were not that easily allowing any external people other than the family
members in the previous decades. Chettiar family firms tend to push for higher share prices
to increase the value of their holdings and are conservative like Parsi firms than other
business communities like Marwaris403. The present business scenario testifies the same
scenario continuing with a few exceptions like the Murugappa Group. Murugappa group
revolutionized the concept when former Wipro vice-chairman P S Pai joined the group as
its executive chairman during 2002404.This appointment of an external professional at a
top management position witnessed the changes in the mind set of the traditional merchant
communities. But, it stands out as a single case in the elite strata, and not followed by any
other big corporate.
Even though the past decades were struggling period for SPIC (Southern
Petrochemicals Industries Corporation, established in 1969, belonging to RajaSir
Annamalai chettiar’s son MA Chidambaram Chettiar’s group), it was the great grandson
of Raja Sir Annamalai Chettiar, Ashwin Muthiah who rescued it in 2015 from closure405.
401
The term Cliques denotes the small close knit group or circle of people that doesn’t allow
othersto join them.
402
403
Dutta, S. (2011). Family Firms in Present-Day India. In M. M. kudaisya (Ed.), The Oxford India
Anthology of Business History (pp. 209-212). New Delhi, India: Oxford University Press.
404
Business Standard Bureau . (2002, OCtober 17). Former Wipro Vice-Chairman Pai Joins
Murugappa. Business Standard .
405
(Narasimhan T. , 2015)
204
Ashwin Muthuiah joined SPIC in 2009, taking the reins from his father AC.Muthiah
Chettiar and steered all the way to bring the company back to stability from the
diversification strategies that went wrong. They never opted for external professional help.
The company has strong political ties with a Political Party of Tamilnadu, which adds
advantage to the company when Party is in rule and affects adversely when the opposition
party comes to rule. The see-saw of the two Political parties that exchange the power hold
in Tamilnadu decides the destiny of growth of this company.
The same goes with the other Major Company of the Raja Annamalai Chettiar
family – Chettinad Cements. Managed by the family line, this group faced adversaries due
to the family feuds. The adopted son of MAM.Ramaswamy Chettiar, Mr. Muthiah Chettiar
leads the corporate and external professionals are welcomed in the top circle.
In case of other companies like Karumuthu groups, the textile mills are all governed
by the successors and the Boards are well stocked with the internal people.
Hence, it is to be summarised that the globalization had not changed much of the
way the business is conducted in the Chettiar groups. It stands in the status quo of the
statement written by Ito in 1966.
5.1.6 Business Bonds or Familial bonds
It is said that the Crisis of the 1930s made chettiar form family business set ups which
was not so before the depression. Ito mentions this change in format as that from managing
separate companies as tradition to a contrary tendency is seen during 1960s. The families
started working as groups, “the familial bond strengthened to attain the objective result of
group strength”406.
Out of the five major business groups today namely Murugappa, MAC Group, MAM
Group, M.Ct Group and Karumuthu group, it is to be noted that only AMM group and
406
(Ito, 1966)
205
Karumuthu group holds all the companies under one banner and fulfills the necessities of
Ito’s statement.
But, it is to be understood that this trend doesn’t develop into a phenomenon. The age
old tradition of small separate business for each son is still proving to be the trend. MAC,
MAM and M.Ct all come from one family – Rajah Sir group, but now grown into three
different groups, separated as per the tradition of the Sons starting their own business and
naming the companies after them (or their initials). The group concept worked with only
some of the major players often mentioned in our studies, and not with the majority of the
chettiar business people.
The unseen factors behind the economic pressure of that time caused the familial bonds
to grow stronger in order to survive and that stood true only for that period till stabilization.
It may not be the traditional bonds or family structure. In other words, the group would
have been formed to stop from decline and not based on family bonds.
While looking horizontally at other communities, the major groups of India from
historical period – Tatas and Birlas may have acted as a source of inspiration to other
business groups to think of combining familial bonds with business bonds. Unlike the
merchant bankingfirms they run individually, they preferred to stay united and stay strong
during the depression might be to avoid the scattering of the capital what was left after
huge losses. This is a noted and accepted as business combines.
But, in all the other smaller cases and after the Independence of India, with the small
available data, it is found that almost all the interviewees who does business does it alone
and sometimes the siblings does the same business yet separated. The unity looks very thin
in the present scenario.
In one case, it is found that the elder brother works for the younger brother in his
manufacturing company, whereas, as per the Colonial era literatures, in the absence of
father, elder brother is treated as the heads of the family and gets to decide and enjoy all
the privileges of the family. Hence, obviously the family a bond doesn’t play to be the
business bonds and the factors that made Ito to think so, were the need of the period and
nothing more.
206
But, this hypothesis is not accepted by some scholars like Raman Mahadevan, who
argues that, “there are serious limitations in the quantifying the effects of traditional social
institutions on the economic motivations of business men.” The argument validates the
point that only the middle and lower strata of the community was wounded hard by the
depression. He further suggests that it is better to consider the tangible material constraints
on the Chettiar capital to industry than to question the smallness of chettiar investment in
the industry.407
It is true that even though small number of chettiars entered industry the
investments were huge. But, given with the enormous investment earned before depression
and given with the business knowledge, centuries of trading traditions, network of kinship,
availability of human resource, it is too small a transition and investment into industries by
the chettiars. It could have been furthermore, if the same network and unity was kept up
during and after the depression too.
5.1.7 Values and Ethics
The Community of Chettiars had a set of rules to be followed strictly for social as
well as business conduct. These rules were often printed408 and circulated among the
community members. Often put in the acid test, the debate continues on their questionable
ethical standards in the conduct of business. During 1820s the chettiars started their
operations in the Eastern Indian Ocean selling cotton piece goods from the Coromandel
Coast. But, there is an argument that their real fortune making came from the hand in glove
cooperation with the European Exchange banks in financing the Opium trade from
407
408
207
India.409 The twist in the accusation is that the author also mentioned that the Chettiars are
not as sordid as the other business men of India, like Gujarathis, who would go low enough
to get involved in the slave trade of East Africa.410
Any act is weighed in its situation for the decision of righteousness. On the other
hand, just because of comparative good, the bad cannot be turned into good. It is just, better
than the worse. But, in this case, if we look into the perspective of chettiars, it is to be
understood from the background. The chettiars are manipulative in financing and they did
it with the European exchange banks for more commission obviously, and for survival in
the business too. The business values of chettiars which was often based on the rules book
they follow, states that financing is right. But, what is the destination of that financing is
not noted. The chettiars thus have done the opium trade financing, growing their profit on
one side and the influence and nearness to the throne on the other side, which they have
done successfully for centuries. However, by the turn of the century, more legit
opportunities were awaiting them like tin mines and rubber plantations in Malaya and
agricultural development in Burma.
The money accumulation and squeezing of peasants of Burma and other countries
was not taken as “against Values” by many of the members of the community, as their
perspective falls on the “loss” they suffered in the hands of depression. Few opines that the
“curse” of loss was the consequence for the sins of the chettiars – starting from their action
of killing their women in instances of Pandya Kingdom411 to the usury in Southeast Asia.
409
Bose, S. (2015). Blackbirders Refitted? The journey of capitalists and lobourers in the Indian
Ocean, 1830-1930s. In C. K. Jayathi Bhattacharya (Ed.), Indian and Chinese Immigrant
Communities: Comparitive Perspectives (p. 5). Singapore: Anthem Press.
410
(Bose, 2015)
411
According to the legend of chettiars and as per the “Nagarathar Charithram” book, Chettairs
had the rule of “honour killing” their women in the instance of any involvement with other
208
Rudner elaborately describes the case of Raja Sir Muthiah’s political activities in
1930s, which displays the other grey side of the Chettiars.The words of Lord Wellington,
the then Governor of Madras points out on the issue that “I must say that I thought I knew
something about playing funny politics but I must take off my hat to these Indians. They
are past masters at the art”412. In case of Ethics and Values, generalizations cannot be done
based on few cases, but, this gives an interesting introspective view on the changes of
values under the influence of money and power.
The recent case of insider trading accusation on Mr.Vellayan of Murugappa Group

resulted in Mr.Vellayan stepping down from the Chairmanship of MurugappaGroup on
May, 2015. The charges were based on the link sought to be made by SEBI between
Vellayan and A.R.Murugappan, a distant relative of Vellayan (son of a grand aunt) and had
had a property transaction with Vellayan. Murugappa Group responded to this as “based
merely on suspicion and is a far-fetched tenuous conjecture413” of SEBI,and later the
Murugappa group Corporate Board requested A.Vellayan to resume the Chairmanship of
the Group Board414 after an assessment of the status of the ongoing proceedings against
the SEBI’s charge and expert legal advice on the matter.
community men, no matter whether the woman in question is responsible or not. In one
instance, when their “Guru” of the Mutt was not able to convince them on “not –to –kill” the
women who were raped by some dacoits, went away to “Kasi” to wash the sins of his followers.
On another instance, a five year old girl child was killed, because a Pandya King, unaware that
she is a chettiar girl, took her to his palace. Even after the pleading and threating of King, the
girl was killed to save the purity of the community.
412
(Rudner, 1994)
413
TNN. (2015, May 23). Vellayan steps down as Murugappa chairman on insider trading charges.
The Times of India -Business .
414
PTI. (2015, October 23). A Vellayan returns as Murugappa Group Chairman. The Economic
Times .
209
To summarise, Beliefs leads to intentions and intentions are the base for the planned
behavior415. Chettiars do believe in God and Goodness, which is evident in the entire
interview schedule. Chettiars are trusted by other communities of the society in a big
picture since long time like a tradition, and the inner-circle trust among chettiars are not as
high as it used to be in Colonial Era. Along with the time, the community values and beliefs
too have eroded in many areas, but as for the observations, the basic respect on one’s own
conscience,respect and fear towards the God and religion, spirituality and community
discipline all acts as the monitoring factors of this community’s ethics scale.
5.2 Socio-cultural Perspectives
5.2.1 Origin and time line
Chettiar community can trace its origin to the 2nd century AD. Two great Tamil epics
of that period describe the Chettiars as traders and merchants who eventually won the
honour of crowningevery successor to the Chola throne416. While mostly the literatures in
the pasts rely heavily on Edgar Thurston’s famous book on Castes and tribes of south India,
there is a controversy on the authenticity of the information, as Thurstons book was based
on the historical Tamilbook on Chettiars. The book claims to be written on the basis of the
palm leaf manuscript preserved in the Tulavur Mutt. The palm leaf manuscript wasthe
interpretation of the Poongonrai Velankudi temple Stone Inscriptions. This was reviewed
and re-written by VR. L. Chinnaiya Chettiar as a small book in 1894, published by
Thanjavur Subramaniya Aiyar of Devakottai and after a long wait, published in paper with
the help of Ramanathan Chettiar and Arunachalam Chettiar in 1941417.
415
Icek, A. (1985). From Intentions to Actions: A theory of Planed Behaviour. Springer.
416
Chidambaram, P. (2001, January 29). Book Review: The Chettiar Heritage. India TodayReview
on “the Chettiar Heritage Book” in the India Today
417
(Chettiar, 1941)
210
Unfortunately off late, during 1980s there is a claim that there are no such stone
inscriptionsmentioning the history of chettiars or no such history mentioned in the stone
inscriptions available in the location to backup the history.418But, the non-availability of
stone inscriptions searched after a lengthy period of more than 100 years cannot be taken
for decision as the stone inscriptions do get damaged or misplaced during the years. The
example of Gangai Konda Cholapuram temple stones, which got vandalized in 1836 by
the Public Works Department officials to construct a dam nearby,419 indicates the lack of
value of stones and inscriptions. Hence, missing of stone inscriptions, after 100 years of
period is a plausible occurrence in a temple which is not very popular or of any
archaeological value.
The other reference of Chettiars often debated and discussed is of Karaikal Ammaiyar.
Karaikal Ammaiyar, identified as from the 6th century AD, was born in a merchant
community ofKaviripoompatinam (near Karaikal). The place of her living, born into
merchant community and being a deep devotee of God Siva makes the people believe that
she is a chettiar. Hence, it can be well conceived that based on the above said notions, the
merchant community was thriving at the 6th century itself near the ports of
Kaviripoompattinam. The historical facts of chettiars being maritime traders yet well
establish the reason for their living near the port towns. In the middle of 19th century,
Kaaviripoompattinam,the seashore town where chettiars were living was devastated by a
tsunami and hence, moved and settled in an arid region to avoid tsunamis420. The area they
inhabited came to be known as Chettinadu, meaning the land of chettys. This corroborates
418
Sridevi, S. (2005). Local banking and material culture amongst the Nattukottai Chettiars of
Tamil Nadu. New Delhi, India: JNU.
419
Nagaswamy, R. (1970). Gangaikondacholapuram. Madras: The State Department of
Archaeology, Government of Tamilnadu.
420
Muthiah. S, M. M. (2000). The Chettiar Heritage. Chennai, TamilNadu, India: Chettiar Heritage
Publishers.
211
that the chettiars were living for more than 15 centuries in the same place till the tsunami
hit. Tsunami could be one reason they searched for other places to move in, other than the
legend of Pandya King’s invite to move to his country.
The legendary story of Pattinathar, who is believed to be a Chettiar, speaks about the
flourishing maritime trading and renunciation in old age. This practice of renuncing, or
“Diksha”, the idea of getting renounced is still followed in the areas of Chettinad.
An authenticated excavated document found in a France documentary keepers treasure

says that “Chettiars main town was Devakottai. Under the Chola king, they lived in the
capital Kaveripattinam (also known as Kaviripoompattinam, poompuhar). During his
reign, the prosperous Vellalars of his country assumed the name of Chettis.” 421.
The
document also mentions the measurement of their inhabitant as 96 villages within a square
area of 4 kathams422. katham is a old measurement, which gets converted into 40
miles.(The calculation of 10 miles = 1 katham).423
The two notions on the shifting of this community to Chettinad from Chola Kingdom
are:424
1. The popularly believed tale of Pandya King requesting them to come and settle in
his country to grow the trade.
421
M.Gobalakichenane. (2004). The Origin of the Nattukottaiyars and their Communal Practices.
(M.Gobalakichenane, Trans.) Chennai: EastWest Books.
422
(M.Gobalakichenane, 2004)
423
Garstin, J. H. (1878). Manual of the South Arcot District. Madras: Lawrence Asylum Press.
212
2. The other tale, which is not much popular but believed by scholars are the devastating
tsunami that swallowed the town and houses of the community and the chettiars moving to
an interior place of Tamilnadu where sea will not destruct. There is very little evidence to
prove either side, but the movement is accepted in both cases.
Hence, it is to be accepted that there is a possibility of the legendary tale of this

community on mobile from Kanchipuram to Kaveripattinam and kaveripattinam to
Chettinadu.
5.2.2 Architecture:Implications and impact of the palatial houses
There are nearly 11,000 mansions425 in the area of Chettinadu, most of which are
locked during most of the months of a year, as the families reside elsewhere.The chettinadu
palatial houses are usually seen with a high elevation, steps leading to the entrance, whereas
the other houses of other community people looks simple and at the ground level. There is
a notion that the steps indicate their fear of tsunami426, which is the reason for their
emigration from their homeland in Chola country, Kaviripattinam.
The chettiars who believe in frugality and simplicity, who don’t spend much on
clothes427 or luxury items till their ventures in southeast Asia, showcased a paradigm shift
in behavior by building palatial bungalows spotted all over the chettinadu area. To derive
clarity on this change of investment pattern and life style, the following points were noted
to have an analytical look:
 The life style of frugality is not matchingto the huge money invested in the
luxurious ornamental decors inside the home
425
Chettinadu Mansion (2009). [Motion Picture]. India.
426
UNESCO, P. D. (2014, April 15). UNESCO-World Heritage Convention. Retrieved September
2, 2015, from Chettinad, Village Clusters of the Tamil Merchants:
427
(Thurston, 1909)
213
 The concept of “multiplying”, which is a core rule of investment for
chettiars,was not followed, as these houses are dead investments. (Even today,
as the houses are built in remote villages of Chettinad property value is very
low compared to the other towns and cities of Tamilnadu).
 Logically, the need and the reason for bigger houses were to accommodate big
joint families. But, the grandeur of some houses is very huge to define under
this concept. Hence, the love for showcasing the wealth is to be considered too.
The imported materials like Italian chandeliers, Belgium glasses and Burmese
teak render supportive evidence to this display of wealth.
The discussion leads us to reconsider the past historical behavior through the
legend, which narrates the mass suicide of chettiars428 in Chola kingdom during
“Saalivaahana Sahaptham”, Kaliyuga year 3775(674 AD). The tale narrated in the
“Nattukottai NagaratharCharithram”mentions the imprisonment of Chettiar women by
the Chola King and as consequence to the humility and insult,they committed mass suicide.
But, the reason for imprisonment is not mentioned. As per the folklores passed on to
generations in the chettiar community, the reason for imprisonment is as follows: (As told
by an elderly chettiar woman, and cross verified the version with two historians, who
accepted that they too have heard of the story, but have not came across any proof for the
authenticity)
“One evening the Chola king went through the chettiar residential areas during his
routine rounds and found silver doors to chettiar houses which infuriated him, as he himself
doesn’t have silver doors in his palace. He ordered kings men to remove the doors that
night. The next day he went to see the houses again, presuming they would have replaced
with wooden doors, but to his shock there were gold doors on the house. He got wild and
428
(Chettiar, 1941), (Sridevi, 2005)
214
out of sheer anger that touched the limits of madness, he ordered to imprison chettiar
women, which he knew will hurt deeply the chettiar community, as they had high self-
esteem and have very rigid rules regarding their safe keep of their women.”
Whether this story is proved true or not, the chettiars who believes their origin and
heritage believes this story. On this argument, it makes us think that it is after allnot new
for them to build such huge ornate bungalows for exhibiting their wealth.
5.2.3 Behavioral Changes
There is a mention of Chettiar being “poor” community till 1800 429.Hence,

thefortunes that tumbled upon the community from money lending had spun them off-
balance obviously. The Behavioral changes like from simple and frugal living to display
the status and wealth were triggered from that point. The chettiars should have started
looking ways to convert the wealth into status. The more the bigger and richer the place
looks, the more the status gained and the more the status gained the more was their
influence and respect in the society, which in turn helped them earn more in their business.
Unfortunately, the community, which is strict in following traditions and custom, seems to
have had such a great flaw and weakness.
Usually, it is very hard to break customs and rituals of a chettiar tradition. Through
observation the researcher was able to find out that the major changes started with a single
case, and only if those singles change was initiated by a highly rich, influentialand elite
family. Similarly, the display of wealth through bungalows and palatial housesshould have
become infectious to other rich chettiars in the village, and then the order of the village was
for everyone to follow.
429
(M.Gobalakichenane, 2004)M.Gobalakichenane in his translation work mentions that this poor
community acquired prominence and wealth only after their overseas trading started during
1800s.
215
Regarding the acquisitions of Zamindaris, which was totally out of role for the
chettiars, it could be the interest in keeping up amicability with the rulers of the state that
turned into becoming one among them. The case of acquiring Zamindari status under the
Setupathis of Pudukottai empahsise this concept. They have shown interest in showing
themselves nearer to the throne by exhibiting their wealth. But, this was a case of very few
chettiars, and a generalization cannot be pulled out of this.When this change in behavior is
questioned during the interview schedule and in a group discussion, some of the Chettiars
who are in business for a long time commented this as “competitive ego” of showcasing
the wealth played heavilyagainst the sensible business acumen and simplicity. The other
common opinion of the group was that the long suppressed desire to spend and long
suppressed humility of being thrify could have ignited the outburst of spending.
However, the addiction to build bungalows andlavish display of wealth during

marriages took its toll on these simple living tribes. A 1930 Chettiar Magazine430 article
sarcastically condemned the import of hundreds “Maravai431” from Moulmein, Burmaas

a container for Betel nuts, a souvenir gift for the guests of a marriage. The article
condemned this act for setting a wrong example in the times of economical depression of
the community. When questioned on the unmaintained condition of the mansions today, a
chettiar commented that the mansions “now stand as a vulgar display of wealth”432.
To summarise, it can be seen that the flow of change of chettiars behavioral pattern
has resulted in improper financial investment decisions, which swallowed the major
portion of capital investments of middle level chettiar firms. The maintenance cost of the
luxurious life they turned towards was unmanageable with the crisis of great depression
430
(Editor, Dhanavanigan , 1930)
431
Maravai is a wooden box intricatley carved and painted. It is a handycraft product of Burmese
432
(Sridevi, 2005)
216
looming on their town. The only saving grace was the Chettiar mansions built in cities and
towns of their settlement like Madurai, Tiruchi and Chennai, which proved as a right
investment decision, as the real estate soars to sky in these towns.
5.2.4 Population
The population of chettiars was maintained with the nine temple’s registers, where
the data of married men (Pullis) are duly entered. During previous decades, usually, the
number is arrived by multiplying the number of men registered in the temples by 5,
assuming a family consists of three children. Now the smaller families are in practice and
no proper number is arrived at. Moreover, the registers in the temples take the count of
men marrying bride from another “koil”, (clan temple). Hence, due to the present social
scenario where young Chettiar people are sent out to mingle with a lot of other communities
, there is a lot of scope of love marriages, which most often happens to be an inter-caste or
inter-religious marriages. Hence, instead of increasing population, the paradox of
decreasing population happens in chettiar community.
On the other hand, the Chettiar males who marry outside the community still
claimthemselves and their family as Chettiars, as he is a descendant of Chettiar. As
mentioned in the earlier chapters, the families thus formed in this way are called as “2nd”
category of chettiars and this population grows in numbers. The Women who marries
outside the community often take the communal identity of her spouse as per the Hindu
tradition and thus goes out of question.
The recent meetings of Chettiars in clan temples and associations stress the
youngsters on the values of adhering to the rules of the community and to not marry
outsidethe community, but it seems to be not that fruitful.433A journal printed and
433
This was the statement of a middle aged chettiar, who get divorced and in a dilemma of
maarying a woman outside the community.
217
published from Karaikudi, for the Chettiars by the chettiars, recently published an
interesting request – to have more than two children in a family to increase the population
of the shrinking community.
As mentioned earlier, the two divisions of chettiars are thus called as “No.1” or
“original” and “No.2” or “cross”. The Nagarathar associations usually don’t enroll the 2nd
category chettiars, the assurance of their being “original” is to be verified through the
temple registry, which is not practical for the locations of associations are scattered.Unless
a chettiar revealshimself, it is tough to find the division.Sometimes, in the present scenario,
there are cases of 2nd category getting into the business and social associations of chettiars,
identifying themselves as “originals”.434Hence, according to a respondent,in a meeting
conducted by the “Pangalis” of a clan temple, it was decided to issue identity cards to their
members. But it didn’t work out due to the internal agitations. The reason told by some
respondents wasthe non-availability of NRI chettiars details and their absence during
meetings. As it seemed to be a surface reason and knowing the secretiveness of chettiars,
when probed, a respondent with a lot of hesitation told to the understanding of the
researcher, that while the process of identity cards was going on, one of the sons of the
chettiar in the leader capacity married a girl from another community, and as per rule, he
can’t be given a identity card. The chettiar thus with a broken heart, lost the motivation and
the process stopped.
The attitude difference was visibly clear between the two sects, when the
discriminations were discussed during interview. 100 percent of the 2nd category accepted
that they want to be identified as chettiars on par with the other sect and all the elderly
434
A chettiar informant who got enrolled in Nagarathar Association revealing his father’s identity
and suppresssing the fact that his motther is from other community, confessed confidentially
to the researcher.
218
chettiars belonging to the “Originals” sect answeredfiercefully with a big “No”. But, some
of the youngsters from the “originals” category answered they don’t object to the idea.
The researcher confronted some of the elderly as well as middle aged informants with
the fact mentioned in their history “Nattukottai Nagarathar Charithram”, that once, when
there were no female available to marry the chettiar males during the Chola period, it was
“Vellala” women, who was equal to them in community status, helped to continue the
survival of the community and all the 1502 male members of the chettiar community were
married to “vellala” women. All the elderly respondents refused to comment, and 87% of
the middle aged respondents accepted the flaw in the concepts and were of opinion that the
rules of the community should be reconsidered.
When the same questions and facts were stated to the second division of “new gen”
chettiars, they felt exactly opposite and were of the opinion that all the chettiars are equal
and the first division’s denial of incepting them into the clan temple registry is not fair, as
they have such a history. But it was found as an overall view that the second division
hesitates to identify themselves as “second” division, unless stressed to reveal. It is felt by
the researcher that an inferior feeling is ingested into them in the society of “first division”
chettiars.
There is another division claiming for the joining into the society of chettiars are
the Urudhikottai Vattagai Chettiars. It is said that during 1823, in a “96 village” meeting,
an influential chettiar caught in a conflict with others. Out of rage he and his supporters,
104 families, separated and started living as a group of chettiars, but continued the same
customs and rituals. Now, the future generation, around 1200 families, claims the reunion
with the main stream of chettiars, proving they are the descendants of those 104 families435.
The Meeting in the Kovilur Mutt has recognised them and with the help of great efforts
435
MR. M. KR. M.Somasundaram, S. (1989). Naam nammai chera. Karaikudi.
219
from the Kovilur Mutt, during 2003, it was decided to accept them into the main stream
and acceptance indicated by sending garland and Prasadam from temple436.
To summarise, the purity in breed notion is pulling the community backwards as

till date the two segments don’t socialize as members of same community. The business
networks would be brighter and would have been brighter if the relaxation in accepting the
other category also as chettiars. The cooperation and coordination to live as a community
is the need of the day, as it has been the proven success story of this community.
5.2.5.1 Settling in the Migrated Country and adaptability
It is debated in many studies on the chettiars adaptation to the country of their

business. They lived a secluded life in other countries in colonial era, and in the present
scenario, even though they live abroad with their families, they keep themselves rooted to
the native village by attending the clan temple functions and by conducting marriages in
their villages. One classic example is the “Sevvai Pongal” ceremony conducted in
Nattaransankottai in chettinadu. Around nine hundred chettiar families437, most of them
living in various places converge at this village and cook “Pongal”(sweet rice) in the
temple of their Goddess. Many chettiars settled in foreign countries visit their village to
take part in the ceremony438.
436
(MR. M. KR. M.Somasundaram, 1989)
437
Special Correspondent. (2016, January 20). ‘Sevvai Pongal’ draws Nagarathar families and
foreign tourists. The Hindu .
Even though the other communities are allowed to cook pongal along with the chettiar families,
they were given with a separate slot outside the main area! The seclusion of the chettiar
community is understood through this.
438
Scott, D. J. (2014, January 22). ‘Sevvai pongal,’ an annual occasion for Nagarathars to come
together. The Hindu .
220
Swapna mention in her study on the Burma business as “They invested huge and
considered Burma as their country.”439Here this statement seems to be a little paradoxical,
given with the practice of Chettiars to be in Burma for three years and go back to their
native where their family resided. They never considered Burma as their country, as they
never tried to learn the Burmese language, or they never took their family to Burma to
settle and they never stayed for too long in Burma. Only a very few chettiars opted to stay
in Burma, relenting to all the conditions of the new government of Burma.
When it comes to other countries Malaysia and Singapore, the story was
entirely different. They strictly followed the not-adaptingto foreign traditions, but a
considerable number of chettiars made Singapore and Malaysia their homes.
5.2.5.2 Peculiar system of joint as well as independent families
Obviously, the joint family system is not seen any more in any of the societies in
India, and this community is not any exceptional. The changing times has changed this
characteristic of this community. During the whole period of research,no joint family, up
to the definition of the elderly being the head of the family, was found. In some cases,
parents live with the son (not sons, the siblings are not living in same house even in a single
case) the parents doesn’t have the leadership or decision making authority as practiced in
olden day joint families. Hence, it could be concluded that the community has long
forgotten their unique system of “joint as well as independent families” which was awed
by many of the foreign scholars.
439
221
5.2.5.3 Close knit community network
The Community still has associations all over the world (in most of the major cities
of developed countries),440in the nook and corner of every town in Tamilnadu and in all
the major cities of India. This indicates the network of chettiars still exists. But, if we
analyse in the sense of this knit work being an aide for the business conduct as it was used
to be in the colonial era, then it is not. The meaning of “Close knit” community in the
1800-1930 is different from the meaning in present. These associations only enable the
cultural and traditional sharing and in no way a business sharing place.
5.2.5.4 Sharp intuitive acumen for finance
Through the indirect questions in the interview schedule, and through the
observation of some chettiar business men, it is found that the sharpness and intuition for
money calculations and accounting are still in there group. The elderly women in the
Chettinadu, who doesn’t have formal education, calculated the interest for a certain amount
faster than the young people during an interview schedule. They keep their transactions in
their bank accounts very naturally in mind, and have a very good track of their income and
expenditure. Budgeting seems to be an involuntary activity of almost all the members of
the chettiars households even today. Mr. V. Nagappan, Former Director of Madras Stock
Exchange once mentioned his NRI son still sending his budget and expenditure details in
excel sheet to him for suggestions.441
5.2.5.5 Natural frugality
The case of expenditures spent in weddings and the investments that went with the
building of big mansions stand as the denial to this statement. But still, the frugality is the
440
The effort to list all the associations was dropped half way due to non-activity and non-
responsiveness of some associations, and more importantly the list was never ending.
441
Mr. V.Nagappan, Oriental Stocks in a TV Show on 25th Nov 2012
222
base for accumulation of the wealth that went into the above said expenditures. Moreover,
the frugality in small expenditures seems to prevail till date as per the observation of the
researcher during the field visits of the study. Hence it can be summarised that the day-to-
day living is simple and frugal but spending on occasional expenditures seems to be the
destination of the thrift.
5.2.5.6 Great strong spirituality
If one thing that is still practices from day one of the community, beyond doubt it
is the religiousness and spirituality. The number of community members going for the
“padhayatra” to palani temple, the “Sevvai Pongal” and “Poochoridhal” ceremonies
conducted till date, the maintenance of temples, the unbeatable belief in their clan temple
deities, wearing a mark of ash in the forehead by both men and women,are all seen till date.
74% of the young respondents (below 30 years of age including those who answered the
interview schedule with rebellious ideas442)accepted that they are religious and spiritual.443
5.2.5.7 Organized Living:
As mentioned in the previous chapters on their business organisations, they are

highly organized in their social life too. During the field visits and interviews, it was
observed that they have a sense of organization profoundly obvious in their activities. It is
noteworthy to mention one thing - the pattern of the women drawing kolams444during
important festivals and occasions.
442
The informants who denied following many traditions of the community and expressed
willingness for change in the practices of the community
443
The questionnaire mentioned religiousness as “belief in religion, religious traditions and
practices” and spirituality as “belief in searching a meaning for life and self-actualisation”
444
A drawing with the rice flour drawn on the entrance. Kolamis called as Rangoli in North India.
223
Chettiars important kolam design is commonly called as “nadu veetu kolam”,
meaning drawing for the centre of the house.The diagram is a symmetrical extendable
design, complex enough to take one’s patience away. The kolam design is exactly the same
in exterior outline for almost all the clan temples and all the families follow the same
pattern without any major changes. The inner boxes are filled with the creativity of the
drawer, which is always the women of the family. It is a joint effort of women in case of a
bigkolam, and the same design and pattern is used for all the good occasions of the
community like Pujas, Pongal festivals, wedding and other ceremonies.
Figure 5-1: A joint effort for community functions
The theme of such kolam drawings of other community is most often to “beautify”
the house. Floral designs and curves are the base of normal kolam of Tamil women. Unlike
those designs, the curious thing about this chettiar kolam is, beauty plays secondary role
and symmetry takes up the priority. With little or no floral designs and curves, lines
dominate. Perfect, proportionate lines, which reminds of book keeping journals.
Figure 5-2: “Nadu veetu kolam” for occasions at homes
This explains that the organization and aesthetics plays more important role in
chettiar lives than the beauty in relative social norms. Above all, to the amazement of other
224
people, a chettiar house keeps a traceable wooden structure to draw lines of the kolam
neatly!
Figure 5-3: Board to draw lines
Even though the environment and occupational changes has modified some of the
peculiarities of the community, it still tries to keep a strong hold on these characteristics
through traditional weddings and temple festivals.
5.2.6 Identity
Chettiars prefers to call themselves as Nagarathars than Nattukottai Chettiars.

When asked about this preference, many Chettiars presumed that, it may be due to the
commonality of the word “chettiar” in Tamilnadu as there are so many variations of the
sect chettiars like Komatti Chettiars, Devanga Chettiars, Valayal Chettiars, Vaaniya
Chettiars etc. To differentiate themselves, and to emphasize the uniqueness, they would
have chosen to call themselves as Nagarathars. On another angle “Nagarathars” mean the
people in City or from city. Hence, when the community shifted to Chettinadu on the
request of Pandya King, they could have been named so, as they come from a well
established port town kaviripattinam.
5.2.7 Socio-Cultural Evolution
The generation gap was visible in the answers to the proud heritage questions in the
interview schedule. The current generation is the exception to the previous two generation
in talking way proudly on their heritage. Some exceptions in the older generations too noted
in the bitterness of accumulating huge wealth and the wider gap between the rich and poor
chettiars. The socio- cultural evolution and the reasons can be put in a nut shell as follows:
1. Even for being such a small number of population, they established themselves as
an important community of South India
225
2. For a community hailing from an interior village cluster, the gumption they have
showcased in crossing oceansand boundaries commands respect
3. Courageous families which sent their sons to far way places in pursuit of money
risking their lives
4. Adaptability and acceptanceof the new countries with their own style of food,
language and culture
5. Women empowered with authority and responsibility of economic and family
matters
6. The frugality and savings concept as a generalized concept of the community
7. Unabated love for their soil and native land
8. The unique system of adoption of son – not in the sense that other communities do
by adopting infants for the sake of parenting joy, but adoption of grown adults too,
not bothering about the emotional bonding, but for the economical bonding. The
heir to ensure the continuance of family name and heir to the property is the purpose
of Chettiar adoptions.
9. The much appreciated network well established in other countries was not even
tried in our own land. The possibilities of networking in special industries where a
lot of chettiars do the same business like medical stores retailing, chemical
industries, textile industries etc, there seem to be more rivalry among the kin group
than the rivalry with other community people. The chettiars are now ready to
mingle with other community people for partnership but think twice if it is with
other chettiars445.
445
A booklet printed for circulation among chettiars contianing a speech of a Chettiar Named
“Rathinam” in a Deepavali festival meeting of chettiars held on 28.10.78 in Kualalumpur.
226
5.3 Recommendations and Conclusion
From all the analyses conducted as above, the following are found as important areas
to infer meanings and recommendations:
5.3.1 Wealth creation and Multiplication:
The techniques and strategies followed by the chettiars in Burma, Singapore and
Malaysia are proven successful beyond doubt. Even though the situation of unexploited
business areas is indicated as reasons for their success, the strategies are worth for what
they were. The “Multiplying” of money rule stands as a testimony for “little drops maketh
an ocean”, proved practically. The amassing of wealth they created and multiplied
henceforth is the major lesson for the banking service. It can be further strategized and
followed in present day small level banking services.
5.3.2 Wealth Management:
The wealth thus accumulated were invested in huge mansions and losing the easy
liquidity principle of the community. The expenditure in ways of weddings, huge donations
to charities and temples acted as drain holes of wealth. The mismanagement of capital is
the reason and not forecasting the market and not having a control over the expenditure
due to the egoistic competitiveness acted as other drain holes. The realization of these pit
falls may help any community not to repeat the flaws in future.
5.3.3 Social status and Heritage
The chettiars still seems to live in the glory of their past and hence still haunted by
their bitter experiences. The social status of the chettiars as per the Government of India
norms are “Forward Caste” and there is contradicting opinions among the younger and
older generations of the community. It would be better for the community to revisit the
past to learn the lessons and not only bask in the glory of the past. It would be fruitful if
the past is used to ensure the values and ethos that are transferred down the generations.
The heritage of the mansions can be used for tourism entrepreneurship as already some of
the mansions are converted into hotels. Instead of locking up the heritage houses unused,
the avenues to remake the history should be identified and utilised.
227
5.3.4 Spirit of Entrepreneurship
The revival of the spirit of entrepreneurship and adventurous risk taking ability for
which the community is known for is the need of the hour. The education and thinking of
the community members may be focused towards establishing business rather than finding
employment. The natural business acumen that has followed them for generations would
be put to use, if the community members follow the pattern of past and kindle the
cooperative coordinated business ventures, which is not seen now. The associations that
are working towards the cultural sharing can be used as a platform to bring in the spirit of
business, by starting up angel investment initiatives.
5.3.5 Stepping beyond caste and towards community
The need of the hour of the community is to think as a community and not as a
caste. If the members would be willing to step beyond the caste notions and understand
the community concept it would help all the three stake holders- the community, society
and the country. What made them into a group is the common occupation – business, and
not the caste concept. The occupational grouping may be followed now to perform as a
community, only if the other boundaries such as divisions, sects and clan discriminations
are neglected.“Community”represents more socially conscious groups whereas “Caste-
ism” represents social divisions, which divides the society. Hence, stepping beyond the
narrowness of Caste-ism to the wider goodness of communities will certainly help the
members of this community to get elevated.
5.3.6 Possibilities to remake the history
If a small band of chettiars can travel beyond oceans and change the fate of a
country and make it into an agriculturally empowered one two centuries ago, given the
development, technology and population, a well conceived entrepreneurial community
initiative can change the fate of our farmers too. We have a rich history to learn and rectify
the mistakes. The scenario of country’s farmers’ today is no better than the peasants of
Burma or Ceylon in 1900s. The increasing number of suicides of farmers indicates the
shortcomings in the micro-financial system with empathy. As pioneers in the area, the
chettiars can rethink and reconsider a revolution again with their hereditary expertise.
228
5.3.7 Conclusion
Wealth creation, multiplication and accumulation –all is fine only if the stakeholders
of the society are part of the beneficiaries to the accumulated wealth. The belongingness to
the country and the rights of being the citizen is in no way smaller and no ethnic minorities
have dominated for such a long period in a foreign land.
The “drain” from India to Britain was loathed by Indians till date. The “drain” from
Southeast Asian countries to India through chettiars’ well developed due remittance system
of their profit and earnings is no way less than that. The channels and methods might be
different, but the “loathe” is same and it remains.
The chettiars victimized or not, but surely hurt and still the older generations hold
the scars. As the time rolls, the newer generations of the community holds the hope and
tries to create a new identity for them – not just any business group but a multi-dimensional
one.
To conclude, it is our duty to visit our past and to do so, documenting our past as
history, without any bias and prejudice is the first step. Revisiting the path of our
forefathers enrich us with knowledge and lessons, to continue our journey more
successfully. This study is a small contribution to take the first step. It is proved from the
study that, a band of brothers can create a community and a land and culture of their own.
With unity, the members of the community can establish business empires in far off places
and can uplift their society with social responsibility. It is the need of the hour for the Indian
business communities to repeat the success story of agricultural credit in India.
5.4 Limitations
The present study is an attempt to fill the void in the area of business history and
business communities, particularly Nattukottai Chettiars. But the following are noted as
limitations of the study:
2. This is not an exhaustive study by any means. The history of the community is very
long and the documentation is poor in chronology and statistics. Further, the
229
authenticity of the data obtained from the personal journals and magazines are
questionable.
3. The information obtained from the interviewees are subject to moral subjudigation
4. There is no authentic information on the population growth of the community
except for the temple registers which register the married population. Hence, the
world wide spread population is unknown.
5. The wide gap in the community due to inter caste/ inter religious marriages are
getting wider and thus shrinking the population register in the temples. Hence, the
interviewees are reluctant to voice out their opinions.
6. The time and cost factor, for such a wide study with various research locations
proved to be limitation for the researcher to interview the people in person.
7. The controversies among the community and their ethical practices in business
could not be properly interviewed and documented because, the loyalty to the
community, pride and prejudice to safe guard the good name of the community and
the natural affinity to the community acted as a limitation.
8. The availability of historical data proved a real limitation due to careless
maintenance, many documents thrown away not understanding the real value.
9. The studies that are made abroad are not easily available unless a huge cost is
involved. Hence, it proved as a limitation.
10. The generalizations are made after a thorough logical and content analysis but still
the researcher is conscious of the errors that may arise in generalisations due to
biased opinions and misinformation provided by the interviewees
11. After all the effort put in, still the study may have the imperfections and
shortcomings, an inevitable side effect of the case study method.
230
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Appendix
Abstract of the Journal Publication
Introduction
Nattukottai Chettiars are an interesting community with a rich heritage and

traditions. They area also called as Nagarathars. Nattukottai means country castles in tamil,
a name that well suits the community, as they are noted for their marvelously designed
palatial houses. Historical studies mention them as “maritime traders”446 and “salt
traders”447. These adventurous entrepreneurs spread their wings during the colonial era to
many of the Southeast Asian countries like Burma (now called as Myanmar), Malaya (now
called as Malaysia), Singapore and Ceylon (now called as Sri Lanka). This paper tries to
446
S.Grantham, M. A. (15th June 1930).
447
Rudner, D. W. (1994).
i
bring out their most appreciated quality “charity” as a quality of CSR. A note from
Thurston’s448 says,
“The chettys are believed to be the most charitable class in southern India,
and undoubtedly they spend the largest amount of money on charity”.
Methodology
This paper is a qualitative study, using case study analysis method. This paper aims
to study and understand the altruistic characteristic of chettiars through their contributions
to various needs of the society.
Historical Overview
Much noted for their sharp business acumen, frugality, spirituality and simplicity,
they claimed high level of respect in the ancient Chola and Pandya period for their trading
abilities and bringing wealth to the kingdom. Even though the myths and legendry stories
of chettiars in ancient period is under debate for want of authenticity, the chettiars beliefs
are that they are descendants of the traders from Kaviripattinam (Poompuhar) of Chola
kingdom, as the folk lore and a tamil book called “Nattukottai Nagarathar Varalaru” says
so. The Chettiars were flourishing traders of Chola Kingdom, at Kaviripattinam a port town
which helped their trading to faraway places. Hearing on their achievements and
credibility, the Pandya king invited them to his kingdom. Thus, this mobile community
moved to this present location called “Chettinadu”, meaning the “land of Chettys”.
This story of Chettiars is often questioned for its truthfulness. But, the practice of
inviting traders is seen through stone inscriptions449 of GangaiKonda cholapuram, a proud
capital of cholas, around 11th century. It is found that, Paranthaga Cholan had set up a
market place, like a trade hub, for the benefit of the society and 500 tradesmen were
448
Thurston, E. (1909). ( Thurston mentions this quote from Mr.Sundara Aiyar)
449
South Indian Inscriptions, Vol. XIX
ii
stabilized in that market place. (in Tamil, it is called as Nilai Thalam). Further, tax free
benefits were also given to enable their growth. In return, those tradesmen constructed
schools and donated lands for schools. Festivals were conducted and sponsored by them in
the place of their business. Moreover, the tradesmen built renovated temples and donated
gold to king for building temples. The women of the merchant community donated oil to
light the lamps in the temples. This gives an insight on the tradition of business men, from
the day known to us and gives a grip that the legendry story of mobility of Chettiars may
be true.
Geographical Location:
Chettinadu refers to the village clusters that were inhabited by the chettiars. The
number of villages and dimensions is debatable as there are various documents stating
different statistics. However, the transition in their occupation from salt traders and
maritime traders in historic period, to moneylenders and indigenous bankers in the
medieval period, and then to industrialists and retail traders in present day have fanned
them all over the world. Hence, the concentration of chettiars found in the chettinadu
deteriorated day by day and it is very thin or nil in some of these villages. What still makes
these places as chettiar villages are the annual temple ceremonies attended by the clan and
family members, the temples still under the huge donations and maintenance of chettiars,
the clan temples maintaining the population registry and marriage registry of chettiars and
grand palatial bungalows without people living in it. The chettiar legacy has that previously
under the Chola period there was 96 villages, but slowly it got reduced to 80 villages under
7 clusters namely Melapathur, Kilapathur, Mela Vattgai, Kila Vattagai, terku Vattagai,
Pathinaru Vattagai, and Neendakarai Pirivu.
Spirituality and Charity
According to the legendary tale, the Pandya king gave the Chettiars Siva temples
as per their request to get settled in his kingdom. As the Community grown, the temples
they took under as their clan temples increased to nine. These nine temples are still
considered as the base of clans of chettiars, and these temples are all located in and around
iii
the Chettinad. Nattukottai Chettiar Community revolves around these nine Sivan temple
divisions (Kovil pirivu in tamil). Being highly spiritual, they have followed the habit of
keeping aside a part of their business profits to their deities as share. They have shown their
altruistic nature in the development of temples and their maintenance by donating happily
with utmost sincerity and “Bhakthi”. This is evident through the grandeur in architecture
of the temples they have built and renovated, and the day to day maintenance. Hence, it
can be understood that, it is their rich spiritual heritage that had made this community
render contributions selflessly to the society.
Other than the major contributions to their clan temples and the village temples,
they have rendered their financial contributions to almost all the major temples of
Tamilnadu. The renovations made at the Chidambaram, Madurai and Tiruvannamalai
Temples around the end of 19th century are mentioned as huge works with “very large
sums”450 spent by the Chettiars.
Fortunes and misfortunes
During 19th century, the extreme accumulation of wealth of this community was
unimaginable. The Burma Provincial banking enquiry, 1929 estimated a total of Rs.1200
million451of Chettiar money lending in all their operations in all the countries including the
then Madras presidency. The wealth thus earned outside India, was channelized to the
development of their native place, except for the unfortunate incident of flight of Chettiars
from Burma, leaving behind the land and other assets acquired in Burma, during World
War II. As any other history of communities, they too had their own share of ups and
downs. Apart from being traders and money lenders, Chettiars are well known for their
450
Thurston, E. (1909).
451
Turnell, Sean (2005) p.10
iv
indigenous banking abilities, which are often compared with the European Merchants452.
Bank of Chettinad, (now defunct), Indian Bank, Indian Overseas and Bank of Madura
(merged with ICICI) are some of their initiatives.Apart from Banking Industry, they had
diversified business ventures starting from Rubber estates in Malaysia to Tin mines in
Burma, Engineering products to organic pesticides, Cloth mills to Cycles. Raja Sir
Annamalai Chettiar, Karumuthu Thiagarajan Chettiar, Alagappa Chettiar, AM Murugappa
Chettiar, AV Meiyappa Chettiar are some of the great Industrialists of this Community.
Charity as a part and practice of Business
During their expedition in Burma during colonial era, Nattukottai Chettiars used to
conduct their business meetings at the temple453. Temples are not only treated as a spiritual
place, but also a place for community development. They had even small rooms for
business in the ground floor of the temple, called “Kittangis”. Their business days started
with puja and ended with evening prayers. The first entry made in their accounting journal
everyday would be the expenditure written off to their god454. Building Murugantemples
in other countries they operate is also their unique practice. It is a gesture for communal
unity and to keep their faith intact. The temples they built in Malaysia and Singapore stands
today as a congregation place for even Chinese communities, and people of all walks of
life take part in the festivals conducted in these temples.
Practice of “Magamai”
“Magamai” is a definite percentage of commercial profits earned by the Chettiars

to be set aside for charity. Out of this, certain types are set aside only for the temples. It is
452
453
S.Grantham, M. A. (15th June 1930).
454 Information based on the interview with an elderly chettiar, who worked in Burma for
few years
v
a unique attribute of this community, that wherever they go to conduct business, from
Saigon to Cochin China, they have built a temple out of their business earnings. The
“Magamai” contributions helped the upkeep of these temples.
Every year according to the needs of the temple, they conjointly decide upon their
contributions based on the size of the business. In Burma during 1850 - 1930s, generally
one rate fixed for loans and another for acquired property in lieu of debt. For example, the
Burma Provincial Banking Committee Report says, 14 annas per Rs.1000 on loans are kept
aside and 9 annas per Rs. 1000 for property taken over debt, the value of the property being
reckoned always as the principal money outstanding of the debt. It is further mentioned
that, all gave their contribution honestly without fail, and a failure means boycott by others.
As a close knit community, living as concentrated groups in villages back home, this
boycott punishment is a real scare and hence, no Chettiar money lender evaded this
contribution.
The second type of “magamai” was derived by a sort of cess upon certain kinds of
business done. Every year during accounts closing the amount received from one shop to
other and the amount paid to one shop from the other is calculated and the difference in
every pair is taken as base to calculate “magamai” at the rate of quarter of an anna per
Rs.100. The receiver of the total amount pays this to the shop that paid to them, and the
shop which received this “magamai” use this for charity. Apart from this, gifts are paid
from time to time based upon the needs of the society. Some examples mentioned in the
report are
- Gift promised in May 1930 by the Rangoon Chettiars to the fund for relieving
sufferers in the pegu earth quake
- Collections for the gift to Rangoon University
- Kanbe school endowment (A school built and run by the Nattukottai Nagarathar
Association, for the Nagarthar boys in Kanbe, Burma. The residential school was
specifically designed to help the chettiar boys learn Values, Spirituality, Maths and
Physical Education)
- Apart from these group contributions, individually chettiars give freely for charitable
purposes.
vi
The contributions they have made in India during 20th Century, with the huge fortunes
they earned in Southeast Asian Countries are also to be studied for a thorough
understanding of their change in the course of charities. Temples of 19th century were social
places for community meetings and sharing and maintaining social values. But, the turn
of 20th century opened up other necessities of the society like educational institutions,
especially for girls, Research institutes, Health care places, Rural development centers and
digging up of tanks in the water scarce Chettinad. Hence, the sensible Chettiars, by that
time winding up their business firms in other countries and settling back in the home town
due to repatriation of British from Asian colonies, turned their interest of charity towards
education. The big chettiar firms are pioneers in setting up schools and colleges in their
home town. Even though it would be a herculean task to enumerate all the donations and
charities made by the chettiars to the education field, the paper tries to bring in huge
contributions, leaving small ones by the smaller firms and individuals, due to the
limitations of time and cost.
Raja Sir Annamalai Chettiar Groups
Education
We can saythat Education is the thrust area for Nagarathar contributions, next to
spirituality. Being basically banking community, they excelled in book keeping. Tamil
music was highly patronized by Raja Sir Annamalai Chettiar. His son, Raja Sir Muthiah
Chettiar was honoured with a title “Tamil Isai kavalar” – meaning protector of tamil music-
for his flawless contributions towards the development of Tamil music.
Annamalai University
Raja Sir Annamalai Chettiar’s contribution towards Education development of

society is tremendous. He is visionary and a strong believer of education’s role in free
India. His first venture is “Sri Meenakshi College” in 1927. Later, the additions of Tamil
college and a Sanskrit college adorned Chidambaram, a temple town in Tamilnadu. Further
the additions of College of Music and Oriental Training College lead the path way for
expansion. With these colleges as nucleus, Annamalai University was formed. The
vii
splendid development of the University today inspires us and makes us think about the first
big step by Raja Sir and his Son Muthiah Chettiar.
Dr.Alagappa Chettiar
An adorable philanthropist, Alagappa Chettiar is another icon of Chettinadu. It

takes a lot of courage to give as much money as Mr.Alagappa Chettiar was able to donate.
He was a business tycoon, but the money earned came back to the development of rural
tamilnadu. He gave even his palatial house, where he resided, to convert into a women’s
college in his place of birth.
Alagappa University
Alagappa University is his contribution to the Karaikudi, a small town of Chettinad.

The other notable educational contributions455 from this noble person are
 Alagappa Chettiar College of Engineering & Technology (ACCET) at Karaikudi,

Tamil Nadu. (Now an autonomous government institution)
 Alagappa Primary School, Karaikudi, Tamil Nadu
 Alagappa Montessori School, Karaikudi, Tamil Nadu
 Alagappa Model Higher Secondary School at his birth place, Karaikudi, Tamil
Nadu
 A ladies' hostel at Vepery, Chennai
 Foundation of an engineering college at Annamalai University, Chidambaram,

Tamil Nadu
 Foundation of a college of technology at Madras University, subsequently named

Alagappa Chettiar College of Technology, Guindy, Chennai
455
www.alagappa.org, homepage of Dr.Alagappa Chettiar
viii
 A donation to establish the South Indian Educational Society at New Delhi in 1948
 A donation to establish higher education in Malaysia
 A donation for publishing Tamil Kalangiyam
 A donation for geological research by the Travancore government
 A donation for indigenous medicine research by Ernakulam Maharaja College
 A donation to fund students from Cochin to study abroad
 Funding the morning food scheme for Cochin children
 The installation & development of Tamil Department of Travancore University.
 A donation to the Lady Doak College at Madurai
Apart from these contributions towards educational development, he also has donated
for establishing a maternity hospital and childcare centre in Cochin. He donated for the
development of the township infrastructure of Kottaiyur, Tamilnadu, an Indigenous
medicine Research by Ernakulam Maharaja College, a fund for Students of Cochin to study
abroad, and a fund to establish South Indian chamber of commerce in Cochin.
Care beyond native lines
The compassion of Dr.Alagappa Chettiar is not only for the people of his place of
birth, but from the above information we can understand that he cared about the societies
where he ran his business, even a foreign country. The contributions he made in Kerala and
Malaysia are fine examples for this.
Murugappa Group -AMM Murugappa Chettiar
AMM Murugappa Chettiar group of companies (Murugappa Group) are carrying

their philanthropic activities for generations. The Murugappa group follows the community
tradition of “Mahimai”, spending a part of profit towards community and social
development. One percentage of profit after Tax is forwarded to AMM Foundation, the
initiative of the group’s NGO activities. AMM foundation runs two higher secondary
ix
schools (government aided), one in Chennai and another in Chettinad. A polytechnic
college serves for the suburban Chennai students.
In the Health care area, AMM Hospital, from 1924 is to be noted for the service it
is rendering to the rural people in Pallathur, Chettinad. Apart form that, Sir Ivan Stedford
Hospital, a Hospital with all modern equipments for surgery, is a boon to the suburban
Chennai people, for whom Government Hospital with all the amenities is a little far away.
Valliammai Hospital in Kanyakumari district, Tamilnadu is another contribution from this
group to the society. Murugappa Group focus its Corporate Social Responsibility also
towards Research and development. Murugappa Chettiar Research Centre(MCRC) is
another bench mark of Murugappa Group in the rural development sector, designing simple
technologies for the use of local artisans.
Discussion
The interesting and intriguing feature worth noting is that, Chettiars are criticized
for their strict business practices in money lending, with higher interest rates on loans,
which is the reason for their wealth accumulation in a short period. During 1930’s they
were even described as ‘fiery dragons’456 for acquiring land (for unpaid loans), from the
Burmese peasants. But, on the other hand, in all the countries they have set foot for
business457 and back in home country, they were contributing selflessly to the society,
mostly in the form of constructing and renovating temples. This clearly contradicts the
characteristics of “not considering usury as sin” and keeping the chief aim as making
money.458 This shows they practiced business strictly, sticking to the goal of earning profit
and multiplying money as per their community tradition, but at the same time socially
456
Testimony of a Karen witness to the Burma Provincial Banking Enquiry, 1929
457
458
x
responsible too. Having been appreciated as well as accused of being frugal all throughout
their history, the voluminous charities opens up the other side of this community, which
needs to be judged better.
Conclusion
Sometimes, just a small look back into the background of our values system may
inspire us to look forward. It is human tendency to forget the path we have traveled. Along
the path, we deviate, enter new path, new values, new life style, and new business system
and so on. Perception also grows and changes. It is our responsibility and duty to see to
that, that all these changes are towards the improvement of humanity and to make the earth
a better place to live. That’s what all the personalities mentioned above did. Business is an
occupation for survival, if fortunate to make more money, the self less nature should be
turned on. From the activities of altruism mentioned above the following values are
perceived as their community values.
4. Religiousness and spirituality is well balanced with modern life styles and treated as
the basic string to keep the community intact.
5. The importance of education is well understood and thrust is given to that area
6. It is well understood that the altruist activities know no boundaries. As per the ancient
tamil literature hymn “yaadhum oore yaavarum keelir” (meaning “all the places are
same and equal) Chettiars philanthropy is wide spread beyond frontiers.
7. People are treated with empathy, which is understandable through their health care
services.
8. Women folks of the community are well respected and they participate actively in the
selfless activities of their fellow men. Mrs.Umayal Ramanathan, daughter of Alagappa
Chettiar and the Women of Murugappa family are fine examples.
Apart from these, a common characteristic of the community to learn is the

treatment of success and failure. They stand back together again after every major problem
and disasters -from the dry land they come from to the disastrous flight from foreign
xi
countries. They earned a lot, and lost a lot many incidents of history, but still they stand
and start business again with of course, charities as a part. When this was questioned in an
interview session, a Chettiar, aged 87, said in tamil “dharmam talai kakkum”,Meaning
“charity will save the head”, which seems to be true in their case.
References
S.Grantham, M. A. (15th June 1930). Burma Provincial Banking Enquiry Commitee, 1929-30.
Thurston, E. (1909). Castes and Tribes of Southern India (Vol. V). Madras, India: Govt Press.
South Indian Inscriptions, Vol. XIX – Inscriptions of Parakesarivarman
Turnell, Sean ,“Chettiars in Burma” , (Australia,2005) p.10
xii
Interview Guidelines
1. Personal details
 Age
 Gender
 Native village & clan temple
 Sub sect: No.1 or No.2
2. Business or occupation
 Father’s occupation
 Grandfather’s occupation
 If employed, willingness to conduct business
 Risk taking ability
 Any unique Business practices in the family
 Financial Status
 Accounting methods
 Hiring any chettiars?
 Training methods
 Help from associations or kins?
 Marriage alliance helps present business?
3. Business and Community (Conversational)
 Any overseas ventures from the family?
 How & Why did they came back?
 Do you have business partners from your community?
 Do you think the business network concept as it evolved in the past helped the
Community to attain Prosperity? Is it possible to revive these institutions by
drawing some lessons from this experience ?
 Will you be interested in bringing it back?
 Do you think the identity as business community is anyway helpful to your
business?
 Do you think the network is possible now because the IT is much better advanced
now?
xiii
 Do you think if we do the same practice of networking among the business we do
like, paper and stationeries traders together if they had networking, we may do
much better business?
 There is a controversy on the Ethicality of Chettiars’ business practices in
overseas trading. What do you think?
 It is accused by the Burmese (in general, but particularly the Banking enquiry
commission) in the history that Chettiars have cheated the Burmese
farmers and taken over the lands. What do you want to say on this line
 Did anyone from your family come to acquire land in the course of their banking
business in Burma?
 Do you have any documents/records family papers of your ancestors relating to
the pre-Independence period?
4. Community
 Do you feel proud to be a member of this community?
 Are you a member of any community based association?
 How have you benefitted as a member?
 How is your relationship with your Kins, Relatives, and “Pangalis” ?
 How do you relate yourself to the community?
 Do you know about the rich heritage of your community?
 In a situation, will you reveal your community identity with pride and dignity?
 In the nation’s present scenario, do you think it is good to hold a person’s
communal identity?
 What would you prefer –community based marriage alliances or inter caste
marriages?
 What is your overall assessment of your community
 Chettiars are known for the charity. Do you feel pride for that?
 Are you happy with the altruistic identity?
 Do you have this altruistic characteristic of your forefathers?
 What do you know about the elite Chettiar families?
xiv
List of Nine Clan temples, divisions and the Deities
Temple Divisions Deities

S.No
1. Okkurudaiyar
2. Pattanasaamiyar
Ilayatrangudi 3. Perumarudhoorudaiyar Kailasanathar,
1. Koil 4. Kazhanivaasaludaiyar Nithyakalyani
5. Kinginikoorudaiyar
6. Perasendoorudaiyar
7. Sirusethurudaiyar
1. Uraiyurudaiyar
2. Arunbakkurudaiyar
3. Manalurudaiyar Ainootreesar,
Maattrur Koil Periyanayagi
2. 4. Kannurudaiyar
5. Karuppurudaiyar
6. Kulathurudaiyar
1. Sirukulathoorudaiyar Valarolinathar,
Vairavan Koil 2. Kazhanivaasaludaiyar Vadivudaiyammai
3.
3. Marudhendirapuramudaiyar
Aatkondanathar,
Iraniyur Koil Tiruvetpurudaiyar Sivapurandevi
4.
 Tiruveesar,
Sivagamavalli
 Marudeesar,
Pillayarpatti Vaadamalarmanga
Tiruvetpurudaiyar
5. Koil i
 Karpagavinayagar
xv
Jeyankonda
Nemam Koil Ilanalamudaiyar Choleesar,

6.
Soundaranayagi
Thanthondri eesar,
Illuppaikudi
7. Soodamanipuramudaiyar Soundaranayagi
Koil
Desikanathar,
8. Sooraikudi Koil Pugazhvendiya pakkamudaiyar Aavudainayagi
Kandeeswarar,
9. Velangudi Koil Kazhaninallurudaiyar Kaamatchi ammai
xvi
The list of chettiar villages under clusters:
Therkku Vattagai (South)
1 Nattarasankottai 8 Vettriyur 15 Sakkandhi
2 Paganeri 9 Natarajapuram 16 Karungulam
3 Madagupatti 10 Pattamangalam 17 Aranmanai Siruvayal
4 Okkur 11 Kollangudi Alagapuri 18 Panangudi
5 Cholapuram 12 Chokkanathapuram 19 Sembanoor
6 Kalayarmangalam 13 Alavaakkottai
7 Kandramanickam 14 Keela Poongudi
Mela Vattagai
20 Kilasivalpatti 24 Aavinipatti 28 Sirukudalpatti
21 P. Alagapuri 25 Mahibalanpatti 29 A. Thekkalur
22 Kandavarayanpatti 26 Viramathi 30 Sevoor
23 Pulangkurichi 27 Nerkkupai
Keela pathoor Vattagai
31 Arimalam
32 Rayavaram
33 Kadiapatti
34 Thenipatti
xvii
Keela Vattagai
35 Devakottai 37 Aravayal
36 Thanichaoorani
Mela pathoor Vattagai
38 Valayapatti 43 Rangiyam 48 Vendanpatti
39 Kulipirai 44 Kuruvikondanpatti 49 Vegupatti
40 Nachandupatti 45 V.Lakshmipuram 50 Virachilai
41 Melachivalpuri 46 Ulagampatti 51 Panayapatti
42 Kopanapatti 47 Pon. Pudupatti 52 Mithilaipatti
Pathinaru Vattagai
53 Karaikudi 63 Konapet 72 Palavangudi
54 Kandanur 64 Athangudi 73 Chokalingamputhur
55 Kottaiyur Muthupattinam 74 Kallal
56 Uyikondan Siruvayal 65 Ramachandrapuram 75 Kallupatti
57 Kothamangalam 66 Shanmuganathapuram 76 Siravayal
58 Nemathanpatti 67 Pallathur 77 Athangudi
59 Ariyakudi 68 Puduvayal 78 Viswanathapuram
60 Amaravathiputhur 69 Ko. Alagapuri 79 Sivayogapuram
61 Managiri 70 Kanadukathan 80 Karaikudi
62 Nachiapuram 71 Ko. Lakshmipuram Muthupatinam
18

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NATTUKOTTAI CHETTIARS

BUSINESS PRACTICES AND PERSPECTIVES

Thesis submitted to the Pondicherry University in partial fulfillment of the

Under the Guidance and Supervision of

Department of Management Studies

This is to certify that the thesis entitled “Nattukottai Chettiars – Business

Dr. R.Chitra Sivasubramanian

1.5 Research Origin 20

2.4 Business –The Phase of Independence 83

2.5 Business – The Phase of Globalisation 96

3 Business, Places and People 100

3.2 Ceylon (Srilanka) 123

3.3 Malaya (Malaysia) 131

3.4 Straits Settlementsand Singapore 141

4 Economic, Social-cultural and Political Perspectives 152

4.2 Socio-cultural Perspectives 154

5.2 Socio-cultural Perspectives 210

5.3 Recommendations and Conclusion 227

5.4 Limitations 229

1.1 Business Communities of India

1.2 Importance and Influence of Business Communities in India

1.3 Introduction to Nattukottai Chettiars

Map 1-1:Vattagais and clan temples14

1.3.3 Nine Temples – the Base

1.3.4 Indigenous Bankers

L.C. Jain mentions them in his book “Indigenous Banking in India”, as

They have a tradition of mobility in seeking trade opportunities. It is widely

During their thriving period in 1900s, their individualism and asceticism in

 peculiar joint as well as independent family system,

Figure 1-1:Chettinadu Palace, Kaanadukaathan

1.3.9 Chettinadu cuisine

1.4 Review of Literature

1.4.1 Research Works on Nattukottai Chettiars

The study on Nattukottai Chettiars is not taken up in India as it deserved in terms

Weerasooriya has a descriptive account on his book in 1974, the Nattukottai

1.5 Research Origin

1.6 Research Gap

It would be apt to quote Prof. Tripathi’s words here:

1. The studies that were conducted as survey based on sociology and

Studies giving emphasis Based on location of Research works

Southeast Asian Studies

Figure 1-2: Studies on Chettiars

 adventurous maritime traders,

1.9 Scope of the study

1.11.1 Research Strategy

According to the definitions of originality of research by Phillip and Pugh (1994,

 Bringing a new evidence to bear an old issue

1.11.4 Data Reduction

1.11.5 Coding of Data

1. Based on the chronology (time period of the data)

1.11.7 Simplistic Inductivism

1.11.8 Analysis and Interpretations

The data interrogations, comparisons with intuitive comments were logged as

1.11.9 Concept generalizations

Three ways of generalizations are used in the study:

1.12 Future scope of the study

The Chapterisation is planned based on the research objectives.

2.2 Trading – Historical inferences &Overview

Figure 2-1: Chettiar Children62