S. B. SINHA, CJ. ( 1 ) THE petitioner has filed this application praying for a declaration that the action of the 1st respondent-Municipality in issuing the auction notification dated 7-2-2000 for allotment of shops to the persons belonging to Scheduled Castes/scheduled Tribes/ physically Handicapped Persons in the new multi-storied shopping complex near tower Clock, Anantapur for a goodwill amount as illegal, irregular, arbitrary and ultra vires the Constitution. ( 2 ) THE petitioner who claims to be a social worker has filed this application which is in the nature of probono publico, inter alia, on the ground that although the members of SCs, STs and P. H. Cs are entitled to allotment of shops in terms of g. O. Ms. No. 267, M. A. , dated 19-5-1989 and g. O. Ms. No. 253, M. A. , dated 2-4-1993 issued by the Government, they are being deprived of the benefits thereof by the action of the 1st respondent in the matter of allotment of shops constructed by it at anantapur. ( 3 ) IT is not in dispute that the 1st respondent-Municipality has taken up the construction of a shopping complex and in relation thereto it is supposed to follow various orders issued by the Government from time to time. By reason of G. O. Ms. No. 568, M. A. , dated 25-9-1989 15% of the shop rooms are reserved to Scheduled castes persons and by reason of g. O. Ms. No. 258, M. A. , dated 24-3-1993 6% of the shop rooms are reserved for persons belonging to Scheduled Tribes whereas by virtue of G. O. Ms. No. 63, 3% of the shop rooms are reserved for Physically handicapped persons. ( 4 ) IN terms of the above Government orders, the reserved category candidates were required to pay at the rate of 50% of the rent paid by the neighbouring shop rooms or at Rs. 2. 50 per SFT whichever is less. Such allotment is made to the candidates sponsored by the Executive director, S. C. , Corporation, District tribunal Weflare Officer and the Assistant director, Welfare of Handicapped respectively without insisting production of solvency certificate, payment of six months advance etc. as required under the lease rules. However, the Government of Andhra pradesh later issued specific orders in g. O. Rt. Such allotment is made to the candidates sponsored by the Executive director, S. C. , Corporation, District tribunal Weflare Officer and the Assistant director, Welfare of Handicapped respectively without insisting production of solvency certificate, payment of six months advance etc. as required under the lease rules. However, the Government of Andhra pradesh later issued specific orders in g. O. Rt. No. 535, M. A. , dated 8-7-1998 to all the municipalities in the State to generate adequate financial resources to meet their revenue expenditure as well as capital expenditure for construction of the shopping complexes in the prime valuable sites and issued guidelines in that regard. Tower Clock where the 1st respondent is making construction of a shopping complex is at a very important and prime place of the town. The estimated cost of the, construction of the shopping complex would be about Rs. Ten crores. The complex consists of (1) Cellar floor, (2) Ground floor with 102 shops, (3) 1st floor with 102 shops and (4) 2nd floor with 30 to 35 office complexes. ( 5 ) THERE is no dispute that the 1st respondent in terms of resolution of the municipal Council dated 31-12-1999 reserved 24 shop rooms out of 102 shops in the ground floor which is in a completed stage, for S. Cs, S. Ts and P. H. C. candidates as per the aforementioned Government orders and a Gazette notification in respect thereof was issued by the District Collector, anantapur. The 1st respondent by letter dated 30-12-1999 requested the Executive director, SC Corporation, the District Tribal welfare Officer, Anantapur and the assistant Director of Welfare of handicapped, Anantapur to sponsor sc/st/phc candidates to conduct public auction amongst them only as per the guidelines issued by the Government in g. O. Rt. No. 535 dated 8-7-1998 for leasing out the shop rooms to them. As there was no reply from the concerned authorities for sponsoring the SC/st/phc candidates, a reminder was issued stating that the delay in conducting public auction would result in financial loss to the municipality and, in pursuance thereof, the Executive Director, sc Corporation, Anantapur by his letter dated 7-2-2000 permitted the Municipal council to take action for selection of candidates and allotment of shop rooms to reserved categories at the municipality level as per G. O. Ms. No. 535, M. A. , dated 8-7-98 for collection of goodwill by auction following the reservation guidelines in force. ( 6 ) IT has not been pointed out to us as to how the auctions held by the 1st respondent herein were illegal or contrary to the aforementioned orders and guidelines issued by the Government. In the counter- affidavit, it is categorically stated that as the existing structures had to be demolished for construction of the complex, 42 lessees who are occupying the same had to be reallotted the shops. It is also stated that there are about 275 shop rooms in the town out of which nearly 35 shop rooms were allotted to the reserved categories at different places as per the Government Orders without the normal procedure of public auction as per the lists sponsored by the authorities without insisting upon furnishing of solvency certificates etc. , and rents are being collected as per the Government Orders. The counter also states that that most of the beneficiaries under the reserved category are not at all paying the monthly rent and they are subleasing the shop rooms to others at very high rates and the municipality is not in a position to realise the dues in a Court of law as no solvency certificates could be insisted upon as per the government Orders. ( 7 ) THE main thrust of argument of the learned Counsel for the petitioner is that no public auction could be conducted for the reserved categories and that no goodwill amount should be collected from them. But, as can be seen from Guideline No. 13 of the guidelines provided in the Annexure appended to G. O. Ms. No. 535, while the usual reservations for SC/st/phcs in the matter of letting out the shops will be continued, the procedure for auction based on goodwill deposit, will, however, be the same as in the case of others. Therefore, the government had not made any distinction between the reserved categories and others in the matter of procedure to be followed for auction in relation to goodwill deposit. It is also not in dispute that auction for goodwill deposit is being done amongst the weaker sections persons only, which, the writ petitioner had also admitted at para 4 of the writ affidavit. It is also not in dispute that auction for goodwill deposit is being done amongst the weaker sections persons only, which, the writ petitioner had also admitted at para 4 of the writ affidavit. That being the position, no illegality can be attributed to the auction conducted by the 1st respondent- municipality. ( 8 ) HAVING heard the learned Counsel for the parties and having carefully examined the material on record, we are of the opinion that in view of the fact that all the requirements as regards reservation to reserved categories of candidates had been scrupulously complied with as per the government Orders in force, it must be held that no illegality has been committed by the 1st respondent in holding auctions. Further, it is now well settled principle of law that the Court exercising the jurisdiction under Article 226 of the constitution of India normally does not interfere with the policy decision of the state. ( 9 ) FOR reasons aforementioned, we find no merit in the Writ Petition and the same is dismissed accordingly. No order as to costs.