The high-stakes standoff between the Telangana government and the State Bank of India (SBI) over a prime five-acre land parcel in Raidurg’s Knowledge City is finally coming to an end. The bank's board has officially accepted the state’s compromise offer of alternate land, paving the way for both parties to settle the matter out of court.
Under the mutually agreed formula, SBI will trade its original claim for a split-location package:
2.5 acres remaining in the highly coveted Knowledge City.
7 to 8 acres in the upcoming Bharat Future City (narrowing the gap from the 10 acres SBI originally requested for a new data center).
With the SBI board approving the proposal during its June 30 meeting, the resolution is expected to clear local channels within days. SBI is slated to file an official affidavit before the Telangana High Court on July 9—the next scheduled hearing date—to formally withdraw its petition.
The conflict traces back to 2010 when SBI originally acquired the five-acre Raidurg plot at ₹13.30 crore per acre. After the bank fell behind on its payment process, the Telangana Industrial Infrastructure Corporation (TGIIC) cancelled the allotment and took back the land in January 2021.
The issue exploded in value this past May when a nearby TGIIC land auction in Knowledge City fetched an unprecedented ₹237 crore per acre, prompting SBI to legally challenge the state's previous cancellation. Following intensive late-June negotiations led by the state's Chief Secretary, both sides successfully averted a prolonged legal battle over what has become some of Hyderabad's most expensive real estate.
