Hyderabad: The city’s biggest land auction, which fetched the state govt a staggering Rs 1,490.73 crore less than a month ago, has hit a legal roadblock, with the State Bank of India (SBI) staking claim to five acres of the prime property in Raidurg.The matter is slated to come up for hearing before the Telangana high court on Thursday.The disputed land constitutes a substantial portion of the 6.29-acre parcel acquired by Hyderabad-based construction firm Gowra Ventures Pvt Ltd through an e-auction conducted by the Telangana Govt Industrial Infrastructure Corporation (TGIIC) on May 28.SBI has claimed 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 HC, the land was allotted to the erstwhile State Bank of Hyderabad (SBH), which later merged with SBI, by the undivided Andhra Pradesh govt 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.“This allotment contains no condition for resumption, meaning the govt lacks the power to unilaterally seize or auction the land, making the transaction an outright sale per se,” the petition stated. Senior counsel B S Prasad, appearing for the bank, told the court that the state govt had neither issued notices for cancellation nor followed due process before attempting to resume the land. As a result, he argued, the gov’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 Jan 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 govt subsequently withdrew the cancellation notice.The petition also pointed out that the high court, in both 2024 and 2025, directed the state govt to consider SBI’s representations regarding the proposed project at the site.“Despite these directions, the state govt 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 govt proceeded with the auction,” the bank alleged.
