Q.State whether the following statement is TRUE or FALSE, and justify your answer:
"A house-mortgage housing society itself constructs houses and allots them to its members."

The house-mortgage type is different from the other housing societies precisely because of what it does — and does not — do.

Its whole function is to finance members against the mortgage of their property; construction and allotment are done by other types.

The statement is FALSE.

A house-mortgage housing society does not itself build or allot houses at all. Its function is purely financial: it advances long-term loans to its members against the mortgage of their land or house, so that each member can buy a plot or build a home of his own. The property is owned by the member, and the society's role is only to lend the money.

Building and allotting houses is the work of the house-construction (house-building) society and, for flats, the tenant-co-partnership society. Confining the house-mortgage society to financing is exactly what separates it from these other types.

A frequent error is to treat all four types of housing societies as doing the same thing. The house-mortgage society is distinctive precisely because it only finances and never builds.