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5. With these submissions, the learned Senior Counsel sought setting aside of the impugned proceedings of cancellation of the draft lay out.

6. Per contra, the learned Senior Counsel Sri S.S. Prasad, appearing for the 2nd respondent-HUDA, firstly contended that neither the revenue authorities, nor the Assistant Engineer, who were referred to in the writ affidavit were made as parties to the writ petition. He pointed out that in the letter No. B7/6088/95, dated 17-1-1998, addressed by the Joint Collector, Ranga Reddy District to the 3rd respondent - Municipality, a reference was made with regard to the meeting held in the chambers of Secretary, Revenue Department along with the Huda Officials. But the revenue authorities were not made as parties. Secondly he contends that in all the letters addressed by the 3rd respondent or the 2nd respondent, the draft approval is subject to the provisions of the Act and, hence it is not open for the petitioners to contend that they are only governed by G.O.Ms.No. 733 and not by the provisions of Act and hence according to him, the petitioners are bound to obtain the clearance from the authorities under the Act. Thirdly he contended that since the cancellation of draft layouts in Sy.Nos. 43 to 49 of the very same Madhapur village were not challenged and have become final, the present subject land which stands on the same footing, is bound by the said cancellation. He further contended that in the show-cause notice, dated 17-11-1998, the thrust was on the core area, but through proceedings, dated 25-10-1997, the subject matter of discussion was much about F.T.L. of Durgam Cheruru. In fact the aspect of F.T.L. was also shown as a ground for cancellation. Nextly he contended that the inclusion of Madhapur Village in the master plan was effected in the year 1980 and the same was declared as peripheral through memo No. 139040/UC.II(2)/88-4, dated 18-4-1989. It was given effect to from 16-10-1978 and consequent upon the inclusion of Madhapur village and Guttala Begumpet in Fathenagar Gram Panchayat in core area, they became part of urban agglomeration. He stated that subsequently the memo dated 18-4-1989, whereby the Madhapur and Guttala Begumpet were declared as peripheral areas, was withdrawn through memo No. 13927/UC.II(2)/97-3 dated 20-11-1997, by the Government. The net result of all these proceedings is that the Madhapur and Guttala Begumpet formed part of Fathenagar and by virtue of principles of restitution, the application of Act would get restored with effect from 16-10-1978. Hence, he contends that by virtue of Section 5 (3) of the Act any transaction made between 16-10-1978 and 20-11-1997 are null and void and that since the present purchase of land by the petitioners is in the years 1995 and April, 1997, they have to be treated as void. Finally he contends that the only ground to reject the claim of the petitioners while cancelling the draft lay out was that the petitioners did not approach the authorities under the Act.

11. Now it is necessary to look into the corresponding entry in column (2) of schedule I. From a perusal of the said entry it could be seen that Fathenagar and Moosapet Gram Panchayats are included in the peripheral areas. In this regard it is also necessary to look into memo No. 139040/ UC.II(2)/88-4 dated 18-4-1989. The relevant portion is extracted as under for ready reference;

"Government have examined the matter based on the record and legal opinion, Government are advised that it is a fact that at the commencement of the Act Fathenagar Gram Panchayat was included in Column (2) of the Schedule - I to the Act. But by notification No. C1/3102/78, dated 16-10-1978 Madhapur and Fathenagar Gram Panchayats were reconstituted by excluding from their jurisdiction. Madhapur and Guttala Begumpet village and a new Madhapur Gram Panchayat with Madhapur and Guttala Begumpet villages as constituted which is outside the core area of Hyderabad Urban Agglomeration.'

12. Further at paragraph No. 5 it is stated as under:

"............Consequent on this change the status of the Guttala Begumpet (V) has changed from the core area to the peripheral area with effect from 16-10-1978. It is therefore clarified that Guttala Begumpet (v) of Hyderabad Urban Agglomeration is in the peripheral area of Hyderabed Urban Agglomeration with effect from 16-10-1978."

13. From the above it is clear that Madhapur and Guttala Begumpet villages have been excluded from the Fathenagar Panchayat limits and have been constituted as separate panchayats and consequently the Guttala Begumpet village had been changed from core area to peripheral area with effect from 16-10-1978. From the above provision and also from the clarification issued by the Government through the said memo dated 18-4-1989 it is abundantly clear that Madhapur village is declared as peripheral area with effect from 16-10-1978, excluding from the core area. It is further to be noted that as per the above memo, even in the master plan, the Madahpur Gram Panchayat was shown within the limits of peripheral area of Hyderabad agglomeration. Therefore, the situation now undoubtedly is that the Madhapur Village where the subject lands situate within the limits of peripheral area of urban agglomeration not only by virtue of the memo dated 18-4-1989, but also as per the master-plain. It is further to be noted that 'core area' is not defined by the statute. Core area perceivably, is an area identified by the Government as an area of some significance for various reasons.

Ref: 1. Govt. Memo No. 139040/UC.II(2)/ 99-4, dated 18-4-89.
2. Govt. Memo No. 50885/UC.II(2)/ 90-1, dated 4-6-90.
3. From the Comnr. & I.O. of Registration and Stamps, Hyd. Lr.No. 20/29887/96 dated 10-2-97.
Government after careful examination of the matter hereby withdraws the orders issued in the Memo 1st cited.
Therefore, the village Madhapur and Guttaia Begumpet falls in the core area of Hyderabad Urban Agglomeration.
J. Rambabu Principal Secretary to Government"

22. By virtue of this withdrawal, Madhapur village and Guttaia Begumpet would fall within the limits of core area of Hyderabad urban agglomeration, with effect from the date of the G.O.