Section 6(1)(c) in The Regulations For Disbursement of Loans Under The Middle Income Group Housing Scheme, 1968
(c)that he utilises the loan for the construction of a house which is required for his bona fide residential purposes; the loan will not be granted to person who already owns a house within the city or the municipality where he proposes to construct his house with the loan and the grounds that he cannot occupy his existing house because of its already being let out on rent or because it is situated at a place other than the place of his/her work or business, will not be accepted;