The State Bank of India (SBI) and the Telangana government's high-stakes stalemate over a valuable five-acre plot of land in Raidurg's Knowledge City is finally coming to a resolution. The state's compromise offer of alternative property has been formally accepted by the bank's board, opening the door for both parties to reach an out-of-court settlement.

SBI will exchange its initial claim for a split-location package in accordance with the mutually agreed formula:
There are just 2.5 acres left in the highly sought-after Knowledge City.
7 to 8 acres in the future Bharat Future City, which is less than the 10 acres SBI had initially asked for a new data center.

The resolution is anticipated to pass local channels in a matter of days after the SBI board approved the plan at its June 30 meeting. On July 9, the next scheduled hearing date, SBI is expected to formally withdraw its petition by filing an official affidavit before the Telangana High Court.

The dispute began in 2010 when SBI paid ₹13.30 crore per acre to purchase the five-acre Raidurg site. The Telangana Industrial Infrastructure Corporation (TGIIC) revoked the allotment and reclaimed the land in January 2021 after the bank failed to make payments on time.

When a nearby TGIIC land auction in Knowledge City sold for an extraordinary ₹237 crore per acre in May of last year, the issue's value skyrocketed, leading SBI to file a lawsuit to overturn the state's earlier cancellation. Both parties were able to avoid a protracted judicial struggle over some of Hyderabad's most valuable real estate after intense late-June negotiations headed by the state's Chief Secretary.