An approved layout has a sanctioned plan from the planning authority, such as the state Directorate of Town and Country Planning (DTCP) or a metropolitan development authority, with roads, open spaces and plot sizes as approved. An unapproved layout has no such sanction. Lenders rarely fund plots in unapproved layouts, building permission is hard to get, and regularisation, where offered, costs money.
Side by side
Factor
DTCP approved layout
Unapproved layout
Plan sanction
Yes, from the planning authority
No
Approving body
DTCP or a development authority, depending on location
None
Roads and open space
As per the approved plan
Whatever the seller laid out
Building permission
Can be obtained
Usually refused until regularised
Home or plot loans
Generally available
Rarely
Regularisation
Not needed
Only under a state scheme, if open, for a fee
Resale
Easier
Harder
When DTCP approved layout matters
Buy plots in an approved layout: check the approval number with the authority, not just on a brochure.
When Unapproved layout matters
If you are offered a cheaper plot in an unapproved layout, find out whether a state regularisation scheme is open, what it would cost, and whether lenders will fund it.
In more detail
Which body approves depends on the state and the area: DTCP for areas outside metropolitan authorities in states such as Tamil Nadu and Telangana, and bodies such as CMDA or HMDA within their regions. Haryana's DTCP grants licences for colonies.
Approval of the layout is separate from conversion of the land to non-agricultural use and from approval of your building plan. Check all three.