ORDER : K. LAKSHMAN, J. Heard Sri B. Mayur Reddy, learned Senior Counsel representing Sri Bandar Manav Kumar, learned counsel for the petitioners, learned Advocate General appearing for respondent Nos.1 to 3, 5 and 6, Sri G.Madhusudhan Reddy, learned Standing Counsel appearing for respondent No.4 and Sri Ch.Shiva Kumar, learned counsel appearing for respondent No.2 2. The petitioners are 14 in number. They are residents of Mankhal Village, Maheshwaram Mandal, presently it is in 6 th respondent Municipality. With an intention to provide two bedroom houses (for short, 2BHK) to houseless poor families in the State, Government of Telangana, has designed a policy and issued guidelines vide G.O.Ms. No.10, dated 15-10-2015 (for short, subject G.O.’) for implementation of two bedroom housing program. Pursuant to the subject G.O, land admeasuring to an extent of Ac. 09.20 guntas in Sy. No. 131 and Ac.12-08 guntas in Sy. No. 602, has been acquired by 3 rd respondent from pattedars, in the year 2016, for the purpose of constructing two bedroom housing complex consisting of nearly 2700 flats in Mankhal Village, and the construction of the said housing complex has been completed in the year 2017. 3. As per the subject G.O., the petitioners are eligible for allotment of 2 BHK houses. They have submitted applications seeking allotment of two bed room houses. 4. It is contended by the petitioners that they were waiting for allotment of houses. 3 rd respondent has released list of beneficiaries on 02.09.2023. He has announced nearly 1730 families, who are all residents of Hyderabad which falls within the limits of GHMC areas such as Malakpet, Yakutpura, Charminar and Chandrayangutta. The said allotment is prior to the subject G.O. Therefore, the petitioners sought to declare the said list as illegal and for consequential direction to allot houses to the petitioners and other applicants who are local residents of 6 th respondent Municipality in accordance with guidelines issued vide the subject G.O. 5. Respondents 3, 5 and 7 filed counters contending as follows:- Scheme for allotment of 2 BHK houses was framed and also guidelines were issued by the government vide subject G.O. to the residents of Hyderabad who fall within the limits of GHMC areas in Two Bedroom Housing Complex, constructed in Mankhal Village. 3 rd respondent has issued beneficiaries list dated 02.09.2023 strictly in accordance with the said guidelines. 6. 3 rd respondent has issued beneficiaries list dated 02.09.2023 strictly in accordance with the said guidelines. 6. It is further contended that the Government has issued subject G.O. for effective implementation of Two Bedroom Housing Complex in a phased manner by the District Collector and Commissioner, GHMC Hyderabad. Certain additional guidelines for implementation of Two Bedroom Housing Programme in GHMC areas were issued vide G.O.Ms.No.3, dated 06.11.2020. The guidelines were issued with a view that all the categories of the houseless poor get a house to live which is actual object of the programme. The eligibility criteria among others being that the beneficiary shall be below poverty line family having a valid food security card with a number on her/her spouse name/his name (in case of widow/widower/Physically challenged) and that the house will be sanctioned in the name of housewife of the family and that the houseless families and for families living presently in huts, katcha houses or in tented houses. 7. It is further submitted that SC/ST/Minorities caste composition to be adhered in the selection of beneficiaries in each Assembly Constituency and the overall composition that shall be maintained for the district as a whole was also mentioned in the said G.Os. An extent of Ac.9.20 guntas of Government land in Sy.No.131 and Ac.12-08 guntas in Sy.No.602 of Mankhal Village, identified by the District Collector, Ranga Reddy District, for Phase-I and Phase-II of Mankhal Village and handed over to GHMC, for construction of 2 BHK houses. GHMC has taken up the construction of 2 BHK houses and completed the same. The selection of beneficiaries will be done by respective Tahsildars under their jurisdiction. Moreover, scrutiny will be done by the respective Collectors. In case of beneficiaries pertain to city of Hyderabad was scrutinized by the District Collector, Hyderabad. As per clause 5 of G.O.Ms.No.3 dated: 6-11-2020, 10% of 2 BHK houses or 1000 units whichever is less per Assembly Constituency to be reserved to local beneficiaries, wherever works are taken up outside GHMC limits. The 2 BHK houses were allotted by the Commissioner, GHMC, Hyderabad as per the norms given in the above G.Os. 8. In GHMC area, the concerned District Collectors and Commissioner, GHMC shall jointly finalize the selection of beneficiaries as per the guidelines issued in G.O.Ms.No.12, Dated: 26-11-2015 of Housing Department. The petitioners are not GHMC area beneficiaries covered under 2BHK Housing Scheme of GHMC. 8. In GHMC area, the concerned District Collectors and Commissioner, GHMC shall jointly finalize the selection of beneficiaries as per the guidelines issued in G.O.Ms.No.12, Dated: 26-11-2015 of Housing Department. The petitioners are not GHMC area beneficiaries covered under 2BHK Housing Scheme of GHMC. They are only eligible under local quota of 10% as per the guidelines issued by the Government vide G.O.Ms.No.3, dated 06-11-2020 of Housing Department. The petitioners who are residents of outside GHMC only eligible for houses reserved under local quota under 2BHK Housing Scheme of GHMC in addition to the 2BHK Houses constructed in Ranga Reddy District under 2BHK rural programme by the District Collector, Rang Reddy District. The allotment of houses to the eligible beneficiaries under local quota is the responsibility of 3 rd respondent and the list of 285 houses (Block nos. flat nos. etc.,) was forwarded to 3 rd respondent who allotted a total of 270 houses to the local beneficiaries as per the eligibility and guidelines under 2BHK Housing scheme through computerized randomization and balance 15 houses are to be allotted. 9. There is no irregularity or illegality committed by the respondents in allotting the said houses and displaying the list of beneficiaries dated 02.09.2023. 10. 3 rd respondent has filed additional counter affidavit furnishing the details of the total number of 2BHK houses allotted by 3 rd respondent in Ibrahimpatnam, Maheshwaram, Rajendranagar and Chevella Constituencies including constituency wise 2BHK houses. Counter filed by 5 th respondent is in the same lines. 11. 7 th respondent is claiming that she is the beneficiary of the said scheme. Her name is there in the said list, dated 02.09.2023. 12. The aforesaid rival submissions would reveal that the Government has announced a scheme called 2BHK Housing Programme. The Government has issued the subject G.O., for effective implementation of the said scheme in a phased manner by the District Collector and Commissioner, GHMC. The said G.O. has also prescribed eligibility criteria for getting 2BHK and the same is extracted below:- ELIGIBILITY CRITERIA FOR SELECTION OF BENEFICIARIES:- a. Beneficiary family should be a BPL family having a valid Food Security Card with Physically challenged.). b. House will be sanctioned in the name of house wife of the family. c. Houseless Families and families living presently in Huts, Katcha houses or in Rented houses. b. House will be sanctioned in the name of house wife of the family. c. Houseless Families and families living presently in Huts, Katcha houses or in Rented houses. d. The following SC/ST/Minorities caste composition (of available eligible SC/ST/Minorities) shall be adhered to in selection of beneficiaries in each Assembly Constituency and the overall composition shall be maintained for the district as a whole. Rural: SC/ST-50% Minoritics-7% and balance for others. Urban: SC-17%,ST-6%, Minorities-12% and balance for others. (The percentages indicated are minimum and can exceed to the extent required wherever such a scenario arises). II. SELECTION OF GPS/ULBS AND SANCTION OF 2 BED ROOM HOUSES:- a. District Minister and MLA of the respective Assembly Constituency shall sanction 2 Bed Room Houses in 50:50 ratio and furnish the list of eligible beneficiaries as per eligibility criteria along with the Gramapanchayats, Urban Local Bodies in which the programme is to be implemented to the District Collector/Commissioner, Greater Hyderabad Muncipal Corporation. The number of houses sanctioned shall not be more than the sanctions given to each Constituency. b. The eligibility of beneficiaries in the list shall be verified by the Tahasildar of the Mandal and by the Official designated by Commissioner, Greater Hyderabad Municipal Corporation in Greater Hyderabad Municipal Corporation area and place it before Gramasabha/Wardsabha. c. Grmasabha/Wardsabha will verify the eligibility of beneficiary families in the list placed before it based on eligibility criteria and Socio Economic Caste c. Census (SECC) data and forward the list to the District Collector/Commissioner Greater Hyderabad Muncipal Corporation. d. District Collector/Commissioner, Greater Hyderabad Muncipal Corporation will get the list submitted by the Tahasildar/designated officials of Greater Hyderabad Muncipal Corporation super checked by senior officials of the District Administration/GHMC. c. In case of Urban areas, guidelines issued under "Housing for All" by GOL shall be followed wherever funds are dovetailed with "Housing for All scheme funds. 13. Thereafter, Government has issued certain amendments to the said guidelines vide G.O.Ms.No.12, dated 26.11.2015. The said amendments are relevant and the same are extracted below:- FOR READ AS II. c. In case of Urban areas, guidelines issued under "Housing for All" by GOL shall be followed wherever funds are dovetailed with "Housing for All scheme funds. 13. Thereafter, Government has issued certain amendments to the said guidelines vide G.O.Ms.No.12, dated 26.11.2015. The said amendments are relevant and the same are extracted below:- FOR READ AS II. SELECTION OF GPS/ULBS AND SANCTION OF 2 BED ROOM HOUSES:- a. District Minister and MLA of the respective Assembly Constituency shall sanction 2 Bed Room Houses in 50:50 ratio and furnish the list of eligible beneficiaries as per eligibility criteria along with the Gramapanchayats, Urban Local Bodies in which the programme is to be implemented to the District Collector/Commissioner,Greater Hyderabad Municipal Corporation. The number of houses sanctioned shall not be more than the sanctions given to each Constituency. b. The eligibility of beneficiaries in the list shall be verified by the Tahasildar of the Mandal and by the Official designated by Commissioner, Greater Hyderabad Municipal Corporation in Greater Hyderabad Municipal Corporation area and place it before Gramasabha/Wardsabha. c. Grmasabha/Wardsabha will verify the eligibility of beneficiary families in the list placed before it based on eligibility criteria and Socio Economic Caste c. Census (SECC) data and forward the list to the District Collector/Commissioner Greater Hyderabad Municipal Corporation. d. District Collector/Commissioner, Greater Hyderabad Municipal Corporation will get the list submitted by the Tahasildar/designated officials of Greater Hyderabad Municipal Corporation super checked by senior officials of the District Administration/GHMC. e. In case of Urban areas, guidelines issued under "Housing for All" by GOL shall be followed wherever funds are dovetailed with "Housing for All scheme funds. II. SELECTION OF GRAMPANCHAYATS/WARDS AND SELECTION OF BENEFECIARIES: a. A District Level Committee will be constituted with the MLAs of the District under the Chairmanship of the Minister of the District, and the District Collector will be the convener of the Committee for the purpose of implementation of 2 Bed Room Housing Programme. b. The Committee will finalize G.Ps/ULBs (Wards) and number of houses allotted to G.Ps/ULBS (Wards) for each Assembly Constituency, where 2 Bed Room Housing Programme will be implemented. The number of houses allotted shall not be more than the sanctions given to each Constituency. The minimum caste composition for SC/ST and Minorities will be decided for each GP/ULB (Ward) by the Committee. The number of houses allotted shall not be more than the sanctions given to each Constituency. The minimum caste composition for SC/ST and Minorities will be decided for each GP/ULB (Ward) by the Committee. Overall caste composition in allotment of houses shall be maintained for the district as a whole. c. The District Collector will prepare the schedule to GPs/ULBs for calling applications and conducting Grama Sabhas/Ward Sabhas for making preliminary scrutiny of applications as per the eligibility criteria for allotment of houses under 2 Bed Room Housing programme. d. Preliminary scrutinized eligible list of the applicants will be forwarded to the Tahsildar of that Mandal for the thorough verification. Tahsildar after verification will submit the eligible list of applicants to the District Collector. e. As per the schedule given by the District Collector, the list finalized by the Tahsildar will be again placed in the Grama Sabha/Ward Sabha for conduct of drawal of lots to select beneficiaries for sanction of 2 Bed Room Houses. The drawal of lots will be done as per caste composition given by the District Collector for that particular G.P/ULB (Ward). f. The list finalized by drawl of lots for each GP/ULB (Ward) will be placed before the District Level Committee for approval and after approval the District Collector will issue sanction orders. g. If any complaints are received on the selection process such complaints will be enquired by the District level officer nominated by the District Collector and findings will be placed before the Committee and the orders passed by the Committee shall be final. h. In case of Urban areas, guidelines issued under "Housing for All" by GOI shall be followed wherever funds are dovetailed with "Housing for All" scheme funds 14. In continuation of the said guidelines, vide G.O.Ms.No.3, dated 06.11.2020, Government has issued additional guidelines for implementation of 2BHK Housing Programme in GHMC area. The same are also relevant and are extracted below:- 1. The overall caste composition shall be followed in selection of beneficiaries as mentioned in the G.O.Ms.No.10, dt. 15.10.2015 of Housing Department, considering GHMC area as one unit. 2. In GHMC area, the concerned District Collectors and Commissioner, GHMC shall jointly finalize the selection of beneficiaries as per the guidelines Issued in G.O.Ms.No.12, dt. 26.11.2015 of Housing Department. The overall caste composition shall be followed in selection of beneficiaries as mentioned in the G.O.Ms.No.10, dt. 15.10.2015 of Housing Department, considering GHMC area as one unit. 2. In GHMC area, the concerned District Collectors and Commissioner, GHMC shall jointly finalize the selection of beneficiaries as per the guidelines Issued in G.O.Ms.No.12, dt. 26.11.2015 of Housing Department. Further, the verification of applications received for allotment of 2BHK shall be cross-verified with the available data of beneficiaries and ensure that: ? the applicant name should be available in the 2018 Assembly Voter List. ? The AADHAAR Card address must be within the GHMC limits. ? The applicant should have a valid Food Security card in the GHMC limits. ? The applicant should have a valid address proof In GHMC area. 3. To exclude applicants who have benefitted (allotted) under previous housing schemes namely Rural Housing, Urban Housing, INDIRAMMA, JnNURM, IHSDP, VAMBAY, RGK etc., in the State, duly taking the help of Telangana State Technology Services (TSTS). 4. Further, the applicants benefitted under G.O. 58, dt: 30-12- 2014 & G.O. 59, dt: 30-12-2014 of Revenue Department are also to be excluded, duly taking the help of TSTS. 5. To reserve' 10% 'or' 1000 Units whichever is less per Assembly Constituency to local beneficiaries, wherever works are taken up outside GHMC limits. 6. The respective District Collectors to select beneficiaries from each of the Constituencies from the available data, including existing In-situ slum dwellers vacated for taking up 2BHK works. 7. The Guidelines of PMAY-HFA (U) shall be followed and the beneficiary particulars required as per Form-48 of PMAY-HFA (U) shall be obtained from the selected beneficiaries. 8. The concerned District Collectors shall finalize the selection of beneficiaries for the houses reserved under local quota of the respective Assembly constituency for the beneficiaries outside GHMC limits. 9. The District Collectors shall allocate houses to the beneficiaries (Housing Colony, Block Number, Floor & flat Number) to the extent of units taken up within the Constituency and balance shall be forwarded to the sector in-charge as per the mapping Indicated by the Commissioner, GHMC. 10. The Sector in-charge/District Collector shall allocate the units to all the beneficiaries from different constituencies as per the mapping Indicated by the Commissioner, GHMC. 15. 10. The Sector in-charge/District Collector shall allocate the units to all the beneficiaries from different constituencies as per the mapping Indicated by the Commissioner, GHMC. 15. It is apt to note that on consideration of the said submissions, on coming to conclusion that there is violation of the said guidelines issued by the Government allotting 2BHK houses vide list dated 02.09.2023, vide order dated 25.09.2023, this Court directed respondent Nos.2 to 5 to hand over physical possession of the 2 BHK houses to the residents of GHMC areas as shown in the list issued by 3 rd respondent dated 02.09.2023 in the 2 BHK dignity housing colony constructed in Mankhal Village, Maheshwaram Mandal. As per the subject G.O., the respondents have to adhere to the selection of beneficiaries in each Assembly Constituency and the overall composition shall be maintained for the district as a whole i.e. Rural: SC/ST-50%, Minorities – 7% and balance for others; Urban: SC-17%, ST-6%, Minorities -12% and balance for others. 16. Vide the subject G.O., it is also mentioned that the number of houses sanctioned shall not be more than the sanction given to each Constituency. The District Minister and MLA of the respective Assembly Constituency shall sanction 2 BHK in 50:50 ratio and furnish the list of eligible beneficiaries as per eligibility criteria along with the Grampanchayats, Urban Local Bodies in which the programme is to be implemented by the District Collector/Commissioner, GHMC. The eligibility of beneficiaries in the list shall be verified by the Tahsidlar of the Mandal and by the official designated by Commissioner, GHMC in GHMC area and place it before Gramsabha/Wardsabha. Gramsabha/wardsabha will verify the eligibility of beneficiary families in the list placed before it based on eligibility criteria and Socio Economic Caste Census (SECC) data and forward the list to the District Collector/Commissioner GHMC, who will get the list submitted by the Tahsildar/designated officials of GHMC, super-checked by senior officials of the District Administration/GHMC. 17. It is also relevant to note that Section 2 (16) of the Telangana Panchayat Raj Act , 2018 deals with gram sabha and the same is extracted below:- 2. In this Act, unless the context otherwise requires:- (16) “Gram Sabha” means the Gram Sabha which comes into existence under section 6; 18. Vide G.O.Ms.No.12, dated 26.11.2015, the Government has issued amended guidelines for implementation for the said scheme in the manner stated above. In this Act, unless the context otherwise requires:- (16) “Gram Sabha” means the Gram Sabha which comes into existence under section 6; 18. Vide G.O.Ms.No.12, dated 26.11.2015, the Government has issued amended guidelines for implementation for the said scheme in the manner stated above. Government has also issued additional guidelines for implementation of the 2BHK Housing Programme in GHMC area vide G.O.Ms.No.3, dated 06.11.2020. 19. As per the said additional guidelines, government shall reserve 10% or 1000 units whichever is less for Assembly Constituency to local beneficiaries wherever works are taken up outside GHMC limits. The respective District Collectors shall select beneficiaries from each of the constituencies from available data including existing In-situ slum dwellers vacated for taking up 2BHK works. The concerned District Collector shall finalize selection of beneficiaries for the houses reserved under local quota of the respective Assembly Constituency for the beneficiaries outside GHMC limits. The District Collector shall allocate houses to the beneficiaries (housing Colony, Block Number, Floor & Flat Number) to the extent of units taken up within the constituency and balance shall be forwarded to the sector in-charge as per the mapping indicated by the Commissioner, GHMC. The Sector in – charge/District Collector shall allocate the units to all the beneficiaries from different constituencies as per the mapping indicated by the Commissioner, GHMC. 20. There is no dispute that Ac.9-20 guntas of government land in Sy.No.131 and Ac.12.08 guntas of land in Sy.No.602 of Mankhal Village, Maheshwaram Mandal, Ranga Reddy District has been acquired by the 3 rd respondent for construction of 2 BHK Housing Complex in Phase-1 and Phase -2 in the year 2016 and handed over to GHMC for construction of 2BHK houses. GHMC has taken up the construction of 2 BHK and completed the same. 21. All the 14 petitioners are residents of Mankhal Village, Maheshwaram Mandal, Ranga Reddy District, which is within the 7 th respondent-Municipality. It will fall under Maheshwaram Constituency in which the total number of houses sanctioned are 400 of which the administrative sanction accorded by the District Collector is for 392 houses in 7 locations. However, the number of houses taken up for construction is 192 in two locations. Out of the said 192 houses taken up for construction, 112 are in progress and 80 houses were completed. However, the number of houses taken up for construction is 192 in two locations. Out of the said 192 houses taken up for construction, 112 are in progress and 80 houses were completed. After selection of the beneficiaries by the Tahsildar, the said completed 80 houses have been handed over to the beneficiaries by the office of the District Collector, Ranga Reddy District. 22. As per the G.O.Ms.No.3, dated 06.11.2020, 10% or 1000 Units whichever is less for Assembly Constituency have to be reserved to the local beneficiaries wherever works are taken up outside GHMC limits. Perusal of the list dated 02.09.2023 filed by 3 rd respondent would reveal that respondents have not followed the guidelines issued by the Government vide subject G.O., G.O.No.12, dated 26.11.2015, and G.O.No.3, dated 06.11.2023. The said ratio is not maintained. The list contains the total number of 2BHK houses allotted by 3 rd respondent to four constituencies i.e. Ibrahimpatnam, Maheshwaram, Rajendranagar and Chevella. The same is in violation of the said guidelines. 23. Learned Advocate General placing reliance on the principle laid down by the Apex Court in M/S Master Marine Services Pvt. Ltd vs Metcalfe & Hodgkinson Pvt. Ltd. , [ (2005) 6 SCC 138 ] would contend that the Court should always keep the larger public interest in mind in order to decide whether its intervention is called for or not. Only when it comes to a conclusion that overwhelming public interest requires interference, the Court should interfere. 24. It is relevant to note that when the action of government or its instrumentalities is arbitrary and in violation of their own guidelines, Court can certainly interfere by invoking its inherent power under Article 226 of the Constitution of India. 25. In Sher Singh vs. Union of India , [ (1995) 6 SCC 515 ] , the Supreme Court held as follows:- “7.……..As a matter of fact, the Courts would be slow in interfering with matters of government policy except where it is shown that the decision is unfair, mala fide or contrary to any statutory directions…….” 26. In Akhil Bharita Upbhokta Congress vs. State of Madhya Pradesh , [ (2011) 5 SCC 29 ] , the Supreme Court also held as follows:- “65……..Every action/decision of the State and/or its agencies/instrumentalities to give largesse or confer benefit must be founded on a sound, transparent, discernible and well –defined policy…….” 27. In Akhil Bharita Upbhokta Congress vs. State of Madhya Pradesh , [ (2011) 5 SCC 29 ] , the Supreme Court also held as follows:- “65……..Every action/decision of the State and/or its agencies/instrumentalities to give largesse or confer benefit must be founded on a sound, transparent, discernible and well –defined policy…….” 27. As discussed supra, perusal of the list dated 02.09.2023 would clearly reveal that the respondents violated their own guidelines issued vide the subject G.O. and other G.Os. The entire action of the respondents is contrary and in violation of the aforesaid three G.Os. Therefore, list dated 02.09.2023 displayed by 3 rd respondent is liable to be set aside. 28. The respondents are directed to follow the guidelines issued by the Government vide the aforesaid 3 G.Os., while implementation of 2 BHK Housing Programme. If the petitioners are found eligible as per the said guidelines, they shall allot 2BHK Houses to the petitioners and other applicants.. 29. Accordingly, this Writ Petition is allowed. The list of beneficiaries dated 02.09.2023 issued by the 3 rd respondent is set aside. If the petitioners are found eligible as per the guidelines in the three G.Os. i.e. G.O.Ms.No.10, dated 15.10.2015, G.O.Ms.No.3, dated 06.11.2020 and G.O.Ms.No.3, dated 06.11.2020, they shall allot 2 BHK Houses to the petitioners and other applicants within a period of three months from the date of receipt of a copy of the order.