ORDER

Leave granted.

2. This appeal by special leave arises from the judgment and order of the Division Bench of the Andhra Pradesh High Court made on December 14, 1995 in W.P. 6592/94. The appellant had filed a revision under Section 35-A of the A.P. Mines & Mineral Concession Rules, 1966 (for short, the "Rules"). The Government after issuance of notice, set aside the transfer of the leasehold rights had by the first respondent, P. Rama Rao, who was the original lessee, to M/s. Magam Inc. in respect of the leasehold interests in the four leases granted in various G.Os. for about 103 acres which facts are not in dispute. When the matter came up for hearing, this Court issued notice as to how and under what circumstances P. Rama Rao came to transfer these leasehold interests to the second respondent, and whether they are sustainable in law ? The respondents have filed their counter-affidavits. We have heard the learned counsel on both sides.

3. It is not in dispute that P. Rama Rao had applied for and obtained leases on various dates for quarrying granite in R.L. Puram in Chimokurthy Mandalam of Prakasam District for a period of ten years on October 7, 1989. Subsequently, on October