Y. BHASKAR RAO, J.

( 1 ) WRIT Appeal 791 of 1994 is filed by the respondent/state in the writ petition w. P. 19026 of 1988 and Writ Appeal 851 of 1994 is filed by the petitioner in the said writ petition assailing the judgment of the learned single Judge dated 29-3-1994.

( 2 ) THE writ petitioner/appellant will be referred as petitioner and the State will be referred as respondent for the purpose of convenience.

( 3 ) THE facts of the case are that the petitioner is the owner of the land admeasuring 24838 square meters in Vijayawada town, Krishna district. He filed a declaration under Section 6 of the Urban Land (Ceiling and Regulation) act,1976 (for short the Act ). Thereafterwards, the procedure laid down under sections 8 and 9 of the Act was followed. It was found that the petitioner is holding excess land of Ac. 1-44 cents equivalent to 5849 square metres. The petitioner filed a petition under Section 20 (1) of the Act seeking exemption stating therein that before the commencement of the Act itself, i. e. , on 1-5-1975 he entered into agreement with Messrs. Ushodaya Publications (Private) Limited for lease of the land for a period of thirty-three years for establishment of their industry for publication of the newspaper in Telugu. It is also stated that he has given possession of the land to the said Company, that the lessee has already invested huge amounts in the construction of buildingsand on the machinery and they also started publication of newspaper eenadu from Vijayawada, that the said industry is a small scale industry , which has a considerable employment potentiality for local technical candidates, and that it is also the policy of the Government of Andhra Pradesh to encouragc small scale industries in various towns and rural areas by giving number of incentives, concessions, central subsidy, State subsidy, power tariff, margin money loan, marketing facilities etc. It is further stated that exemption of the land was given under the Act to encourage establishment of small scale industries and therefore, the petitioner requested that exemption may be granted. It is also the case of the said M/s. Ushodaya Publications that they also filed petitions for exemption before the Government, that the Government has granted exemption as per G. O. Ms. No. 7, Revenue (U. C. 1ii) Department dated 3-1-1984 and that thereafter wards as the area is not correctly mentioned an errata was issued as per G. O. Ms. No. 766, Revenue (U. C. III) Department dated 8-5-1984. While granting exemption as per sub-para (i) of para 4 of the said G. O. , four conditions were stipulated as per Clauses (a) to (d) under sub-para (i) of para 4 of the said G. O. which arc as follows:-" (A) that it should not be leased out or sold without the permission of the government; 1 (b) that the land should be utilized for the purpose for which it is exempted within three years from the date of grant of exemption failing which the exemption granted shall stand cancelled and the said land will be subject to the provisions of the Urban Land (Ceiling and Regulation) Act, 1976; (c) that the land may be mortgaged to any Bank as defined in Clause (iii) of Sub-section (1) of Section 19 including Andhra Pradesh State financial Corporation for the purpose of raising finances for the industry; (d) that the land so exempted above would vest in the Government after the expiry of the aforementioned lease period under the provisions of the said Act. "

( 4 ) THE petitioner challenged in the writ petition that Clause (d) in [para 4 of the said G. O. is arbitrary and prayed to issue a writ for deletion of the said Clause. On behalf of the respondent it was contended that the said clause (d) of para 4 of the impugned G. O. is in consonance with Section 20 and other provisions of the Act, and that State has got power to impose any condition while granting exemption, that there are no merits in the writ petition and that the writ petition is liable to be dismissed.

( 5 ) THE

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