The mosque was demolished by the municipal authorities at Shamshabad on the outskirts of Hyderabad earlier this week.
Kausar Mohiuddin, a member of the Telangana Assembly, along with other local leaders of AIMIM and local residents, offered Friday prayers at the same site in Green Avenue Colony where Masjid-e-Khaja Mahmood was razed on Tuesday.
After the prayers, he said the mosque would be rebuilt at the same place. He said that on the representation of AIMIM President and Hyderabad MP Asaduddin Owaisi, the state government has allowed reconstruction of the mosque.
Police had made tight security arrangements in the area. Only 50 people were allowed to offer Friday prayers.
The demolition of the mosque had triggered strong protest by local Muslims. AIMIM leaders had staged protests at the municipal office and at the office of Rangareddy district Collector.
Taking a serious note of the demolition, Owaisi made a representation to the government. The Municipal Administration department had formed a three-member committee, which visited the municipal office and the place where the mosque was demolished. It was made clear after the panel's visit that the government will not create hurdles in reconstruction of the mosque.
The management committee of the mosque along with AIMIM leaders had handed over all documents relating to the approval for construction of the mosque to the municipal officials. They also demanded strong action against the officials responsible for demolition.
The mosque was constructed three years ago and local residents say daily five times Namaz including Friday prayers were being performed regularly.
The municipal authorities demolished the mosque by deploying bulldozers in the presence of police in the early hours of Tuesday. The action was taken on a complaint by a local resident that the place of worship was constructed without approvals.
The local Muslim residents, however, said that the mosque was built after obtaining all the approvals.