Bro, In this 1.2 million budget. Don't go for a specific car.
Search for better condition car and go for it.
In my opinion, you will find better condition City iDSI which is better option than Corolla.
Yes, corolla is know for its reliability and has durable suspension. But most corollas you will find from these years (2005-2008) will be abused cars.
But, you will find a lot of better maintained, less driven CITY. It will give you way better fuel mileage and also has less bumpy ride than Corolla. But make sure, you check you cars thoroughly before buying.