Origin of the Nagarathars (600 AD – 1100 AD)
The Nattukottai Chettiars settled in the city of Kaveripoompatinam (Poompuhar) during the Chola Kingdom at the request of the Chola King. The main reason for the request was that the Nattukottai Chettiars were brilliant business people.
Chettiars were successful maritime merchants and traders and lived in the port city (Nagaram) of Poompuhar and wanted to be referred to as Nagarathars to distinguish them from Chetty merchants who lived inland. They flourished, and as successful entrepreneurs, wealth and prosperity grew rapidly, sparking jealousy among many, including the Chola King.
Love affair
During the rule of King Poovandhi Cholan, an incident occurred that turned out to be the turning point for all Nagarathars. The king fell in love (a one-sided affair) with a beautiful young nagarathar and wanted to marry her. But the girl and her parents refused.
The King was very stubborn, announced the wedding date and ordered the marriage to proceed. When the king arrived at the place of the brides on the day of the marriage, he was surprised, the girl, her parents and relatives fled the night before. The King felt it was an insult and vowed revenge on the entire Nagarathar community.
Welcome from King Pandya
Unable to tolerate the torture of the Chola King, the Nagarathars decided to leave, but where? It was then that King Pandya came to rescue them. Recognizing their talents and business acumen, he welcomed them to his Kingdom near Madurai. They were collectively given the land of Chettinad by King Pandya and this is where currently all the Nagarathars have made their home and are spread over 80 villages.
Growth period (1100 – 1800AD)
During this period, the Nagarathars flourished and continued their trade. They were very good bankers and their business spread throughout Southeast Asia. When the British conquered Burma, there was a great demand for rice in Europe. A law passed during British rule gave Burmese title to property if they cultivated the land and paid taxes. As a result of this act, the locals were provided with a mortgage to buy seeds and fertilizers, but who financed them? This is where the Nagarathars came in; they were good at financial trading and offered very low interest rates. When the Burmese did not pay the mortgage, they acquired their land.
Get up after the fall
The fall of the British Empire, World War II and the freedom of Burma led to the loss of assets of the Nagarathars abroad and they had to return to their homeland. Although they lost fixed assets abroad, they had transferred funds to Chettinad. After the return, they began to invest massively in South Indian industry which included education, engineering, fertilizers, film, finance, plantations, publishing, textiles, etc.