The rule is quite strict. If the sanctioning authority is 'satisfied that money... has been utilised for a purpose other than that for which sanction was given,' then the rule applies. Even a 'similar' purpose might be considered a deviation if it's not the exact one approved.
Source: GPF Rule 29
What happens if I retire or resign before the full amount is recovered?
What if I use the policy as collateral for a personal loan?
What if my alternative payments (like insurance premiums) exactly match or exceed my minimum GPF subscription?
What if my policy gives me a choice to take the bonus now or let it accumulate?
Can I get my GPF paid to my bank account outside India?
This answer is for informational purposes only and does not constitute legal advice. Always refer to the original rules and consult competent authorities for official interpretation.