M.S. Ramachandra Rao, J.

1. The petitioner challenges the proceedings in CC. No. G-1/4271/76 of the Special Officer and Competent Authority, Urban Land Ceiling, Hyderabad (2nd respondent herein) as without jurisdiction, null and void and violative of Articles 14 and 300-A of the Constitution of India, and the provisions of Urban Land (Ceiling and Regulation) Act, 1976 (for short, 'the Act') and seeks a consequential direction to restrain the State of Andhra Pradesh (1st respondent) and the Special Officer and Competent Authority, Urban Land Ceiling Authority from interfering with their possession and enjoyment over the Plot Nos. 351 and 320 in Sy. Nos. 96 and 97 at Block No. 13, Gokul Nagar, Marriguda, hamlet of Mallapur Village, Uppal Mandal, Rangareddy District. One Mohd. Rehman Ali and Mohd. Ali were the owners and possessors of an extent of Ac.24-345 guntas in Sy. Nos. 96 & 97 of Marriguda Village, Uppal Mandal, Hyderabad. On 18.3.1967 they executed a registered sale deed for this entire land in favour of one Yelamachili Nageswara Rao and five others. Later, they divided the land into plots, after obtaining layout permission from the Gram Panchayat.

2. Out of the above land, 5074 sq. yards comprised in Plot Nos. 361, 358, 359, 360, 371, 372, 380, 320 and 351 was sold under Registered Sale Deed Dt. 26.9.1967 by Y. Nageswara Rao to Mrs. Bandhakavi Suguna Rama Rao, W/o. B.V. Rama Rao (for short, 'Suguna Rama Rao').

3. After the Act coming into force, B.V. Rama Rao, husband of Suguna Rama Rao filed Statement under Section 6 of the Act declaring the above land in their family holding.

4. On 9.1.1978 draft statement under Section 8(1) of the Act was prepared showing that 4242.47 sq. yards of land in the hands of B.V. Rama Rao was surplus land. This was served on the declarant under Section 8 (3) of the Act, but the declarant did not choose to file any objections to the draft statement prepared by the 2nd respondent. Thereafter, no specific order under Section 8 (4) of the Act was passed by the 2nd respondent.

5. But noting was made in the file that the draft statement prepared under Section 8 (1) of the Act was confirmed. Thereafter, final statement under Section 9 of the Act was issued to the declarant on 24.1.1981. This was followed by notification under Section 10 (1) of the Act on 31.12.1982 in the name of Sri B.V. Rama Rao for acquiring extent of 4242.47 sq. yards.

6. In the mean time, the State Government, in exercise of its power under Section 20 (1) (a) of the Act issued G.O. Ms. No. 733, Revenue (UC.II) Department, dated 31.10.1988. It accorded:

"(a) exemption of the vacant land or the agricultural land and which is likely to be used for non-agricultural purposes at the option of the holder thereof, or both, to a maximum extent of five acres situated within the peripheral area as specified in Column (3) of Schedule-I to the Urban Land (Ceiling & Regulation) Act, 1976 of the Hyderabad Urban Agglomeration, Visakhapatnam Urban Agglomeration, Vijayawada Urban Agglomeration, Guntur and Warangal Agglomerations in excess of the ceiling limit, from the provisions of Chapter-III of the said Act; and

(b) permission to transfer any such land or part thereof by a person by way of sale, mortgage, gift, lease or otherwise, the extent of five acres of land in excess of ceiling limit, excluding the area required for roads, hospitals and for other public use."

7. Having regard to the above G.O. Ms. No. 733, Dt. 31.10.1988, wife of the declarant Smt. B. Suguna Rama Rao executed Registered Sale Deed Dt. 28.5.1998 selling plot Nos. 320 and 351 admeasuring 874 sq. yards in favour of Smt. Y. Sharada Devi. Clause (10) of the said Sale Deed clearly recited that the vendor owned land admeasuring 5074 sq. yards in the peripheral area of Hyderabad Urban Agglomeration, that after issue of G.O. Ms. No. 733, dated 31.10.1988 and availing of exemption granted therein, she had thus transferred 873 sq. yards through Registered Sale Deed Dt. 28.5.1998.

8. On