The petitioners were occupants of Government land in Alaganur Village, Kurnool District. Their lands were acquired for construction of Alaganur Balancing Reservoir along with some private lands. In this writ petition they are seeking compensation/ex gratia for their lands on par with the lands acquired under the Land Acquisition Act or in the alternative on par with 'B' category lands pursuant to G.O. Ms. No.639, Revenue (Assn-IV) Department, dated 29.9.2001.

2. The State Government issued orders in G.O. Ms. No.639, Revenue (Assn-IV) Department, dated 29.9.2001 providing for payment of ex gratia towards acquisition of Government lands. Under the G.O., lands were classified into four categories (i) Category-A are assigned lands for which DKT pattas were granted; (ii) Category-B are Government lands occupied without pattas, but occupations were recorded in 10(1) and Adangal Accounts; (iii) Category-D lands are also Government lands occupied without pattas, but possessions were recorded only in Adangals; and (iv) Category-C are assigned lands purchased by persons from the DKT patta holders.

3. According to the G.O., for Category-A lands, lump sum ex gratia is fixed at the value equivalent to the market value along with an amount equivalent to 15% (for the lands resumed prior to 30.4.1984) and 30% (for the lands resumed after 30.4.1984) on the market value payable under Section 23(2) of the Land Acquisition Act, 1894. The assignees were not entitled for a reference under the Land Acquisition Act.

4. For Category-B lands, the possession of which is reflected in entries in 10(1) and Adangal Accounts, ex gratia is fixed equivalent to the market value but without solatium.

5. For Category-D lands, the possession of which is reflected only in the Adangals, ex gratia equivalent to 50% of the market value without solatium is fixed, and Category-C lands are not entitled for any ex gratia.

6. The lands of the petitioners fall under Category-D, and as such, according to the respondents, they are entitled for 50% of the market value without solatium towards the ex gratia in terms of the G.O.

7. The petitioners are aggrieved by the classification of their lands into Category-D, and they challenge the rationality in denying the ex gratia on par with A-Category lands, or in the alternative at least on par with B-Category lands. The petitioners would contend that they were in occupation of the land for more than three decades. Therefore their lands are similar to other categories of lands in all respects and hence denial of compensation by classifying the lands as Category-D is a discrimination.

8. In the counter-affidavit, the respondents admit the fact that the petitioners were in possession of lands and their lands were resumed for the purpose of construction of the reservoir. The counter, however, states that they were not granted pattas and their possession was found recorded only in the Adangals and there are no entries in 10(1) account. Therefore, the lands were classified as D-Category lands and the petitioners were paid 50% of the market value as ex gratia. The petitioners were paid at Rs.30,000/- per acre for dry lands and Rs.40,000/- per acre for irrigated dry lands under Award dated 13.10.2000 as per G.O. Ms. No.639, dated 29.9.2001. The respondents would contend that it is not possible to treat the lands of the petitioners as B-Category lands. According to them, B-Category lands stand on a different footing because the lands which find entry both in 10(1) Account and Adangals are different from the lands which find entry only in Adangals. The occupants whose names are entered in 10(1) account will be prospective assignees whereas the other occupants are not prospective assignees. In other words, an occupant, whose name is reflected in 10(1) account, will be eligible for patta, but the same is not the case with other category of occupants. Thus a distinction is maintained between an occupant who is supported by the entries in 10(1) acc