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FYI, under the PMAY housing scheme, the Government of India provides financial aid of INR 1.5 lacs to individuals for building their homes on land that they legally possess. For the landless and homeless, there are schemes where homes of a certain value are provided free of cost.
PMAY housing schemes clearly specify that families/individuals that own landlines, fridges, phones, motorcycles and property are not eligible. All applications for PMAY housing are scrutinised and then recommended to the authorities by the Gram Panchayat (both the Sarpanch and the Pradhan sign off on it).
Sub-divisional officer Dudi quoted to The Times of India, “Once the application is filed manually, the process of scrutinising the application is online. The form is linked with aadhaar card and whether the family owns any of the items that debar them from the scheme is done automatically. It appears that the rejection was made due to some technical error.”