1. These two Writ Petitions are being disposed of by this common order in view of the common question of law involved in both the cases.

2. Heard the learned counsel for petitioners and the learned Standing Counsel for respondents in both the cases.

W.P.No.13135 of 2006:

3. The petitioner is a public sector company engaged in the activity of marketing and distributing natural gas produced by various public sector and private sector companies. It purchased an extent of Acs.5-00 cents in R.S.No.226/1 & 5, situated at A.V.Apparao Road, Rajahmundry from the respondent by paying sale consideration @ Rs.1,200/- per square yard under a registered sale deed dated 22.02.2002 for the purpose of constructing administrative office complex and staff quarters. Previously the said land was used by the respondent as a garbage dumping yard. As the said land required huge investment for making it fit to construct buildings, the petitioner wanted to utilise only an extent of Ac.1-50 cents for constructing its office complex and wanted to dispose of the remaining land admeasuring Acs.3-50 cents and accordingly conveyed its decision to the respondent to know whether it is interested to take back the balance extent of land at the prevailing market rate. Though the respondent, initially, was not inclined to take, however, communicated its decision vide letter dated 04.03.2005 stating that it is willing to take the land @ Rs.800/- per square yard on the rear side and @ Rs.1,800/- per square yards on the road side portion. It is pertinent to notice that the land was earlier sold @ Rs.1,200/- per square yard to the petitioner in the year 2002. In view of the unwelcome offer, the same was rejected by the petitioner on 23.05.2005.

4. While so, the petitioner submitted an application to the respondent on 20.08.2005 seeking permission for construction of administrative office complex in an extent of Acs.1-50 cents duly enclosing the required documents. Without considering the said application, the respondent issued an endorsement on 15.09.2005 informing the petitioner that it has to pay an amount of Rs.52,46,739/- under the following heads for getting the permission for construction of administrative office complex.

“1. Security Deposit Rs. 1,46,200/-

2. Building License Fees Rs. 44,100/-

3. ABL Rs. 21,945/-

4. Development Charges Rs. 29,260/-

5. Conversion Charges (Residential to Commercial) Rs. 2,90,081/-

6. Material Stocking Charges Rs. 8,778/-

7. Publication Charges Rs. 1,000/-

8. R.W.H.S. Rs. 6,000/-

9. Tree Guards Rs. 1,200/-

10. 10% open space cost Rs. 36,30,000/-

11. Betterment Charges (20,336X50%)

Rs. 10,16,800/------------

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Rs. 52,46,739/-”

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It was also stated that the petitioner has to submit an undertaking for road widening portion to an extent of 844.728 square yards on an Rs.100/- non-judicial stamp paper. It appeared that the respondent was demanding payment of betterment charges as per C.R.No.663 dated 30.12.1995 read with G.O.Ms.No.65, MA, dated 05.02.1987 and 10% open space cost as per C.R.No.347 dated 01.01.1999. Since the petitioner made all arrangements for completion of the construction of administrative office complex by inviting tenders, etc., it was forced to pay the said amount by letter dated 17.01.2006 without prejudice to its right to contest the demand. Challenging the demand of the said amount, the present Writ Petition was filed mainly questioning the demand of Rs.36,30,000/- towards 10% open space cost and Rs.10,16,800/- towards betterment charges.

5. The learned counsel for petitioner submits that the entire Acs.5-00 cents of land was purchased by the petitioner from the respondent for the purpose of construction of administrative office complex and staff quarters and permission for the same was accorded on 18.01.2006 for construction of ground and second floor. Since permission was granted to the petitioner without mentioning any particular extent of land, the demand for 10% open space cost of Rs.36,30,00