The Supreme Court in its division bench decision dated 9th October 2009 declared Hyderabad as Free Zone. The State Government did not present the case effectively in the Supreme Court. The Telangana Employees Unions which argued competently in the High Court was not implemented in the Supreme Court case.

• The State Government appointed an Advocate from Gujarat who did not understand the issue comprehensively. He argued based on the counter prepared and given to him by the state government. The Supreme Court gave its decisions keeping in view the Para 14 of the Presidential Orders mentioning about the offices of Secretariat department heads, State level offices and State level establishments not bound by the Presidential Orders.
• The Full Bench of High Court gave its judgment mentioning that the appointments of the Police Officers under section 1348 Fifth Hyderabad Police Act was not proved in the Court by the petitioners and were therefore not exempt from the purview of the Para 14(F) of the Presidential Orders. All Police Officers in the Hyderabad Police Commiserate had to belong to Sixth Zone by appointment or promotion, In the Schedule 2 of the Presidential Orders only six zones were specified. Hyderabad was not considered as a Separate Zone by the Presidential Orders and Hyderabad was made a part of the Sixth Zone.
• The High Court of AP gave its opinion that in the issues of appointments, promotions and transfers the Article 37 1(D)X(10) of the Constitution of India and Para 14 of the Presidential Orders should be followed. The High Court did not allow the exemption by Para 14 as the petitioners did not prove that the appointments were made by 1348 Fifth Hyderabad City Police Act.
• The Supreme Court, believing the contention of the petitioners struck down the High Court ofAP decision. The Supreme Court observed that they were appointed by the Hyderabad City Police Act 1 348F and were therefore also exempt as per Para 14 of the Presidential Orders. The Supreme Court allowed the exemption by Para 14.

• Many Andhra leaders insisted that Hyderabad should be changed to a Free Zone. If Hyderabad remains in the Free Zone their economic and political aims will be fulfilled. The Seemandhras faced difficulties in the education and employment opportunities after Hyderabad was made part of Sixth Zone by the Presidential Orders.
• As the Secretariat department heads, State level offices and State level establishments were at Hyderabad and were not bound by the Presidential Orders; therefore the non locals from Andhra were able to grab 90% of the government jobs.
• With the Supreme Court decision the wish of Seemandhras was also fulfilled. The affluent sections of Seemandhra did not want to lose their control on education, employment, business and exploitation of resources. They always brought the Free Zone controversy to the forefront. These conditions were responsible for the revival of Telangana Movement.

• The conspiracies of Seemandhra rich groups in Telangana were understood by the Telangana Employees Associations. They also demanded that Hyderabad should be made a part of the Sixth Zone and that necessary amendments should be introduced by the government in the Parliament to this effect. The Telangana Employees would form a Joint Action Committee and agitate till then.
• The government understood the seriousness of the Agitation of the Employees Unions and called for an all party meeting on the subject of Free Zone. The Government also announced that a Review Petition on Free Zone would be filed in the Supreme Court. All parties except the TRS and the Lok Satta Party agreed to the Government Plan.
• However, if there was no new ground or contention the review petition would be dismissed. In the event of dismissal a curative petition would be filed and the Supreme Court would allow it in exceptional circumstances. Given the complexity and uncertainty involved the only way forward was to bring an amendment to the constitution which alone would remedy the problem. Therefore the TRS party and various people’s organizations demanded amendment to the constitution.