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2. The Master Plan (Annexure I) was prepared under Section 8 of The Uttar pradesh Urban Planning and Development Act, 1973 (hereinafter referred as 'U.P. Act') for development of the area shown therein on 1.6.1986 for the period upto 2001 A.D. In this Master Plan certain lands in Villages Makanpur, Mohiuddinpur Kanauni, Chhajarasi and Lalpur were set apart and shown for use for 'recreational' purposes. This area indicated for recreational use in the Master Plan included certain lands of two private colonisers, namely, Delhi Auto & General Finance Pvt. Ltd. (hereinafter referred as 'Delhi Auto') and Maha Maya General Finance Co. Ltd. (hereinafter referred as 'Maha Maya'). Maha Maya as well as Delhi Auto applied to the Ghaziabad Development Authority constituted under the U.P. Act, for permission to develop and construct on their lands according to their lay-out plan, in accordance with Section 15 of the U.P. Act. The plan submitted by Maha Maya was granted conditional permission on 22.6.1991/11.7.1991. The application of Delhi Auto being found to be defective was returned for correction and was then presented again after removal of the defects on 20.7.1991. It appears that by a Notification dated 22.4.1991 the Government of Uttar Pradesh had amended the land use of the area indicated originally in the Master Plan for 'recreational' use and converted it to 'residential' use. On 3.7.1991 the National Capital Region Planning Board constituted under the National Capital Region Planning Board Act, 1985 declined to approve the change of land use of that area from 'recreational' to 'residential' made by the State Government, on the ground that it was not in conformity with the policy decision of the State Government. Accordingly the Government of Uttar Pradesh reviewed its earlier decision and by order dated 24.9.1991 directed the Ghaziabad Development Authority not to sanction the lay-out plan of any person or any coloniser in respect of that area which was originally meant for recreational use. This action was taken to effectuate the purpose of the National Capital Region plan in the larger public interest for the plan development of that area. The State Government ultimately restored the original position indicated in the Master Plan of use of that area for recreational purposes. On 23.4.1992 Delhi Auto was refused the permission it had sought under Section 15 of the U.P. Act. The same was the effect of the communication to Maha Maya which amounted to revocation of the earlier permission. On facts, the only difference between Delhi Auto and Maha Maya is that in the case of Maha Maya a conditional permission had been granted by the Ghaziabad Development Authority prior to restoration of the land use to the original 'recreational' purpose, while in the case of Delhi Auto the pending application was rejected after restoration of the original position.

3. As earlier stated, the writ petitions filed in the Allahabad High Court by Delhi Auto and Maha Maya challenging the refusal of permission sought by them under Section 15 of the U.P. Act have been allowed. The reasons given by the High Court for deciding in favour of the two private colonisers are the following :

1. By virtue of bye law 7.2 of the Ghaziabad Development Authority it would be deemed that the plan of the writ petitioners stood sanctioned on 22.11.1991. Not-withstanding the fact that the bye-laws have not been approved by the State Government, this consequence follows since the Ghaziabad Development Authority has been following the bye-laws in practice. There is deemed approval of the bye-laws by the State Government under Section 57 of the U.P. Act;
1. The change of land use from 'recreational' to 'residential' was not prohibited in the master plan; and it was also proper and reasonable in the facts and circumstances of the case.
2. 'Indirapuram' housing project covered at least 1626 acres which includes the lands of Delhi Auto and Maha Maya and not merely 1288 acres excluding the lands of these two private colonisers.
3. There was violation of Article 14 of the Constitution inasmuch as there is no rational basis for distinguishing between the lands of Ghaziabad Development Authority and those not of Ghaziabad Development Authority belonging to private colonisers. It is urged that the object of housing is equally met by the Ghaziabad Development Authority as well as private colonisers and, there fore, the private colonisers also should be permitted to build houses in that area.
13. Section 3 of the U.P. Act provides for declaration of development areas for this purpose. Section 4 provides for Constitution of a development authority for any development area declared under Section 3 of the Act. The Ghaziabad Development Authority is one such authority and the lands in question in the present case are within the development area declared under Section 3 of the Act. Chapter III contains Sections 8 to 12 relating to preparation, approval and commencement of master plan and zonal development plan. Chapter IV contains Section 13 which relates to amendment of the master plan and the zonal development plan. Chapter V relates to development of lands. Therein, Section 14 provides that after the declaration of any area as development area under Section 3, no development of land shall be undertaken or carried out or continued in that area by any person or body unless permission for such development has been obtained in writing in accordance with the provisions of the Act. It also provides that no development shall be undertaken or carried out or continued in that area unless the same is also in accordance with such plans. Section 15 deals with the application for permission referred to in Section 14. It contemplates making of the requisite enquiry before making an order refusing or granting such permission. Section 16 prohibits use of any land or building in contravention of the plans. Chapter VI relates to acquisition and disposal of land required for the purpose of development. The remaining provisions relate to ancillary matters. Section 56 empowers the development authority to make regulations with the previous approval of the State Government for the administration of the affairs of the authority. Section 57 empowers the authority to make bye-laws with the previous approval of the State Government for carrying out the purposes of the said Act.