HYDERABAD: The SBI has approached the Telangana High Court challenging the auction of a five-acre land parcel in Hyderabad’s Knowledge City, Raidurg, which was sold by the Telangana Industrial Infrastructure Corporation (TGIIC) last month for more than Rs 1,038 crore.
The matter came up before Justice NV Shravan Kumar on Tuesday through a lunch-motion hearing. SBI filed two writ petitions questioning the state government’s refusal to grant additional time for construction of its proposed twin-tower office complex on Plot No. 1A in Survey No. 83/1 of Hyderabad Knowledge City and the subsequent steps taken by the authorities to auction the land.
The disputed property forms part of a 5.09-acre parcel in Raidurg Panmaktha that was auctioned by TGIIC on June 1 under the state’s asset monetisation programme. The auction generated Rs 1,038.36 crore, with the land fetching about Rs 204 crore per acre.
Auction conducted despite pending litigation: SBI
Vamsiram Builders reportedly emerged as the highest bidder.
In its latest petition, SBI has directly challenged the auction itself, contending that the land belonged to the bank and could not have been put up for sale. The bank has sought a declaration that the e-auction conducted pursuant to the May 6, 2026 notification was illegal and unconstitutional and has requested the court to set aside all consequential proceedings. According to the petition, the successful bidder has been impleaded as a respondent.
SBI argued that it had purchased the land from the then Andhra Pradesh government in 2010 after paying the entire sale consideration of Rs 13.33 crore. The bank maintained that it continues to be in possession of the property and that the original allotment did not contain any provision permitting the government to resume or auction the land after an outright sale.
The bank further contended that the auction was conducted despite pending litigation over the property. According to SBI, it had already challenged the auction notification before the high court, and the matter was awaiting further hearing when the e-auction was conducted on May 28 and subsequently concluded. The bank alleged that the authorities proceeded with the sale without giving effect to earlier court orders passed in connected proceedings concerning the land.
In the separate writ petitions heard on Tuesday, SBI challenged communications issued by the Industries and Commerce department and TGIIC rejecting its request for extension of time to complete construction of the proposed twin-tower project. The bank argued that it had established banking facilities at the site and that delays in implementing the project were attributable to procedural requirements applicable to a public sector undertaking.
SBI also pointed out that an earlier cancellation of the allotment had been set aside by the high court in December 2022 and that another cancellation order was subsequently withdrawn by the authorities. It alleged that the decision to proceed with the auction showed disregard for judicial orders and sought permission to proceed with construction in accordance with approvals already obtained.
After hearing submissions, Special Government Pleader Rahul Reddy sought time to obtain instructions. The court posted the matter to June 18 along with connected petitions for further hearing.
