land problem

There is confusion in each line of your query.

The ration card belongs to  the Head of the family mentioned in the card and there is no need to give to anyone

Why and how you have obtained other ration card for your use of raising housing loan is not known.

It may even amount to a fraud.

Contact a local advocate and take his guidance as you can not expect guidance on incomplete query..

Consult a local lawyer with relevant documents for professional guidance and necessary proceedings.

There is no link between holding a ration card and availing housing loans.  If the institution grants, one can avail any number of housing loans with different interest.

If the family members are separated, irrespective of the ration card, depending on income, separation, one can seek Govt. help after convincing the Tehsildar or volunteer. It appears that even those who are having independent spacious houses, those who never applied for such housing loans received sanctions on the basis of Ration cards.   AP State Govt., has also ordered that a Ration card has to be provided if applied within 15 days. 

@Vineet,

You should open a new post and can not tresspass in the middle of an almost closed post.  Only a new post can be seen by all, and you can get lot of replies..  You can make a complaint to Collector and also submit a petition to the CM.  Wait for a month, file a simple petition to District Legal Services Authority for legal help.  Fighting a lone with a group of persons in small locations involves safety problems to you and your family.   Avoid direct fight to protect Govt land, as there are many ways of fighting in modern days through media and through PIL.