Hyderabad: The city's largest land auction, which generated a staggering Rs 1,490.73 crore for the state government less than a month ago, has encountered a legal hurdle. The State Bank of India (SBI) has staked claim to five acres of the prime property in Raidurg. The matter is scheduled for hearing before the Telangana High Court on Thursday.
The disputed land forms a substantial part of the 6.29-acre parcel acquired by Hyderabad-based construction firm Gowra Ventures Pvt Ltd through an e-auction conducted by the Telangana Government Industrial Infrastructure Corporation (TGIIC) on May 28.
SBI has asserted that it is in the process of constructing a corporate centre on the site, which it intends to develop into one of its largest facilities in the country. According to a petition filed by the bank and admitted by the High Court, the land was allotted to the erstwhile State Bank of Hyderabad (SBH), which later merged with SBI, by the undivided Andhra Pradesh government in 2010 for Rs 13.33 crore. Since then, the bank has spent around Rs 21.50 crore on developing the site, including removing boulders and levelling the land.
The petition states: "This allotment contains no condition for resumption, meaning the government lacks the power to unilaterally seize or auction the land, making the transaction an outright sale per se." Senior counsel B S Prasad, appearing for the bank, told the court that the state government had neither issued notices for cancellation nor followed due process before attempting to resume the land. As a result, he argued, the government's actions were void ab initio and amounted to a gross violation of the principles of natural justice.
Detailing a long history of correspondence with the state's industrial departments, SBI said authorities had issued multiple show-cause notices over delays in commencing construction. In response, the bank sought waiver of delay charges, following which part of the fee was accepted and subsequent payments were made.
The bank argued that it had actively pursued implementation of the project by securing several statutory approvals, including clearances from the Airports Authority of India, fire safety authorities, environmental regulators and municipal bodies by mid-2015. It also initiated excavation work and constructed a temporary branch building at the site. According to SBI, the bank initially operated a branch from the premises before being converted into a Home Loans Marketing Unit office. The bank also continues to operate ATMs at the site.
However, delays in appointing project management consultants led to the issuance of a final show-cause notice by state authorities in July 2020, followed by cancellation and resumption proceedings in January 2021. SBI contended that the cancellation order was set aside by the High Court in 2022, which directed the authorities to consider the bank's representations. The bank further claimed that the state government subsequently withdrew the cancellation notice.
The petition also pointed out that the High Court, in both 2024 and 2025, directed the state government to consider SBI's representations regarding the proposed project at the site. "Despite these directions, the state government issued notices on April 25, 2026, asking bank officials to appear in person on May 4. Though SBI representatives appeared before the authorities and submitted clarifications and objections against the proposed resumption of the land, the government proceeded with the auction," the bank alleged.
