Section 7(1)(b) in The Regulations For Disbursement of Loans Under The Middle Income Group Housing Scheme, 1968
(b)No assistance shall be admissible towards cost of land and/or construction of a house in a colony of which the layout, has not been approved by the competent authority; and no loan assistance shall be granted in those cases where construction the house has been commenced before the loan is sanctioned by the Parishad.