Phani,
See my responses:
1. If you want to create a PolygonShape based on your Lat/Long points and display it on the Google Map, you need to convert each point to the Google Map projection (EPSG 4326) and then create the PolygonShape. Otherwise, the PolygonShape is not going to display correctly on your Google Map. It is going to be in a completely different coordinate system.
Also make sure that the last vertex added to your PolygonShape has the same X and Y value as the first one so that the PolygonShape is closed. This is one requirement to make the PolygonShape valid.
2. If you calculate the area based on the lat/long value of each vertex of a polygon, it is going to be different from calculating the area based on a polygon in the Google Map projection. One uses spherical geometry, the other planar geometry. This is the nature of doing map projection, distortions occurs en.wikipedia.org/wiki/Map_projection and the calculating the area gives differents results based on the projection.
This is actually a topic that is addressed in the Code Community sample Measurements in Decimal Degrees. I suggest you take a look at that sample: wiki.thinkgeo.com/wiki/Map_Suite_De...al_Degrees