The Telangana government’s move to auction land in Hyderabad's prime Knowledge City area has escalated into a major legal and administrative dispute after the State Bank of India (SBI) challenged the sale before the Telangana high court.
This has apparently angered chief minister A Revanth Reddy, who is learnt to have decided that the state government would shift its accounts and deposits away from the SBI and transfer them to another bank.
The controversy centres on approximately 6.29 acres of land located in Survey No. 83/1 at Rayadurgam Panmaktha in Serilingampally mandal of Rangareddy district.
The land was auctioned by the Telangana State Industrial Infrastructure Corporation (TSIIC) as part of its efforts to monetise valuable government-owned properties.
The auction attracted widespread attention after real estate developer Gaura Ventures submitted a record bid of Rs 237 crore per acre, making it one of the highest land valuations ever recorded in Hyderabad.
The transaction was expected to generate substantial revenue for the Telangana government.
However, the process ran into legal trouble after State Bank of India approached the Telangana high court, claiming ownership rights over nearly five acres of the auctioned land.
According to SBI, the land had been allotted to the bank by the government in 2010 for Rs 13.33 crore, and the state subsequently auctioned the property without obtaining the bank's consent. Challenging the auction, SBI sought judicial intervention.
The high court granted an interim stay on the matter for three weeks and temporarily halted further proceedings related to the auction pending examination of the claims made by both parties.
The state government's response has reportedly been strong.
Officials have been instructed to compile details of all government deposits, accounts, and financial transactions currently maintained with SBI.
Government sources indicated that the administration is exploring the possibility of transferring these accounts and deposits to other banks if necessary.
Officials maintain that the original allotment made to SBI was cancelled because the bank allegedly failed to undertake construction or development activities on the land for an extended period.
SBI, however, disputes this position and continues to assert its claim over the property.
The standoff has triggered concerns about potential financial and administrative implications.
Any large-scale transfer of government accounts could affect salary disbursements, welfare scheme payments, and other routine government transactions that are currently routed through SBI.
With both the government and SBI standing firm on their respective positions, the Telangana high court's eventual ruling is expected to play a decisive role in resolving the dispute and determining the future of the high-profile Rayadurgam land parcel.
