After Raidurgam auction, Govt. and SBI patch on cards

After a week of tense exchanges between the Telangana government and the State Bank of India (SBI) over the Raidurgam land auction, there are signs of reconciliation.

Senior SBI officials held extensive consultations with Chief Secretary K. Ramakrishna Rao after the government threatened to escalate the matter to the Centre, RBI and even reconsider its banking ties with SBI.

Sources indicate that the bank has agreed in principle to accept an alternative plot of 2.5 acres offered by Telangana Government Industrial Infrastructure Corporation (TGIIC) in Hyderabad Knowledge City. Another plot elsewhere in the city is being considered as part of the settlement.

The controversy dates back to 2010, when five acres were allotted to SBH at a concessional rate of ₹13.3 crore, despite a market value of nearly ₹200 crore. No construction followed, and delays persisted after the merger of SBH into SBI in 2017.

In May 2019, the TSIIC recommended cancellation, and despite repeated requests from the SBI for more time, the government finally canceled the allotment on 22 January 2021, citing violation of norms that required construction within two years. SBI challenged the cancellation in the Supreme Court, while the government offered alternative plots in Osman Nagar and Gandipet. The government canceled the allotment in 2021 and auctioned the land in June 2026, which fetched ₹204 million per acre.

SBI challenged the auction in the Supreme Court, claiming it was the owner, prompting Chief Minister A. Revanth Reddy to allege political motives behind the move. Officials noted that the SBI had earlier signaled approval for the auction, so its legal challenge was surprising. “Surprisingly, they decided to raise their hue and cry after the auction and even challenged the government auction in court,” official sources said.

With the Chief Minister and Chief Secretary attending high-level talks in New Delhi, the SBI has now indicated its willingness to withdraw its petition and accept an alternative country. The government, apparently satisfied, is said to have decided against tough measures like withdrawing deposits, moving salary accounts or removing SBI as the lead bank in the state. If completed, the patch would end a long-running dispute and restore working relations between the state and India’s largest public sector bank.

Published – 24 Jun 2026 20:49 IST