Telangana Government And SBI Move Towards Settlement In Rayadurgam Land Dispute

The Telangana government and the State Bank of India (SBI) have moved towards resolving their long-running dispute over a prime parcel of land in Hyderabad, with both sides agreeing in principle to a mutually acceptable settlement.

The breakthrough came after a fresh round of discussions held on Saturday, following initial talks that began on June 22. Senior state government officials, led by Chief Secretary K. Ramakrishna Rao , met SBI representatives to explore a resolution to the issue.

According to an official statement, SBI has expressed preliminary acceptance of alternative land parcels offered by the state government. Bank officials had inspected the proposed sites on June 23 and subsequently conveyed their in-principle approval.

However, SBI clarified that the arrangement will require formal clearance from its Board of Directors before it can be finalised. The bank also indicated that appropriate legal steps would be taken in line with the matter currently pending before the courts.

Both parties have reportedly agreed to complete the necessary legal and administrative procedures at the earliest so that the issue can be brought to a close without further delay.

The dispute centres on a five-acre property in Hyderabad’s Rayadurgam area , one of the city’s most valuable commercial zones. The land was allotted to SBI in 2010 by the then Congress government in undivided Andhra Pradesh for the construction of the bank’s corporate headquarters.

State authorities later argued that the project did not progress within the stipulated timeframe and that the land remained undeveloped. Consequently, the Telangana Industrial Infrastructure Corporation (TGIIC) moved to auction the property. The proposed auction attracted significant attention after bids reportedly crossed Rs 200 crore per acre , reflecting the land’s high market value.

SBI challenged the auction process in the Telangana High Court, which subsequently granted an interim stay. The dispute also triggered speculation that the Telangana government was considering shifting its banking operations and accounts away from SBI.

With negotiations gaining momentum over the past week, the standoff appears to have eased considerably. Officials on both sides believe the latest understanding marks a significant step towards a comprehensive resolution, ending a dispute that had escalated into a high-profile legal and administrative tussle.