HYDERABAD: The ongoing dispute between the Telangana government and the State Bank of India (SBI) over a prime five-acre parcel in Raidurg’s Knowledge City is nearing resolution, as the SBI board has approved the government’s offer of alternative land.
This approval paves the way for the likely withdrawal of the pending case before the Telangana High Court, removing a significant obstacle related to one of the city’s most valuable land parcels. Government sources revealed that the SBI board approved the proposal during a meeting on June 30, and the official resolution should reach local bank officials in the coming days.
Under this new arrangement, SBI will receive 2.5 acres in Knowledge City, in addition to seven to eight acres in Bharat Future City. The bank had initially requested 10 acres in Future City for a proposed data center, while the government’s first offer was five acres.
Officials from the industries department indicated that upon receiving the board resolution, SBI is expected to submit an affidavit to the high court during the next hearing on July 9 and formally withdraw its petition.
This development follows a series of discussions at the end of June between the chief secretary and senior SBI officials. The state government expressed its readiness to allocate alternative land at various sites. Subsequently, SBI representatives evaluated options in Raidurg, Osman Nagar, and Bharat Future City, leading to a mutually agreeable solution.
The dispute originated from the Telangana Industrial Infrastructure Corporation’s auction of land in Knowledge City in May, where one acre fetched an extraordinary Rs 237 crore.
Originally, SBI acquired the five-acre Raidurg parcel in 2010 at Rs 13.30 crore per acre for office and commercial establishment. However, after failing to complete the payment, TGIIC canceled the allotment in January 2021 and reclaimed the land.
Following the high-value auction in May, SBI challenged the government’s decision in the high court. With both parties now agreeing on an alternative land arrangement, officials stated that the issue has been resolved amicably, concluding a dispute that gained importance in light of Hyderabad’s skyrocketing land values.
