HYDERABAD: Apparently upset with the State Bank of India’s (SBI) decision to move the Telangana High Court over the auction of a prime land parcel in Raidurg despite discussions over an alternative arrangement, the Telangana government is understood to be considering a review of its relationship with the public sector lender.
The issue has assumed political overtones within the government, with official sources claiming that the decision to challenge the auction has raised questions at the highest levels. Sources said the government suspects that forces opposed to the state’s asset monetisation programme may have influenced SBI’s approach to the dispute.
Unexpected shift in sbi’s position behind government’s displeasure
According to sources, senior authorities are examining whether a very senior SBI official who hails from Telangana might have come under pressure from vested interests seeking to create a controversy around the government’s handling of the land auction.
While no evidence has been publicly presented, the developments have fuelled concerns within the government over the circumstances that led to the bank approaching the HC. The government’s displeasure is said to stem not only from the litigation itself but also from what officials describe as an unexpected shift in SBI’s position after talks between the bank and the Telangana Industrial Infrastructure Corporation (TGIIC). Sources said the government had explored an amicable resolution and was surprised by the bank’s decision to pursue legal remedies.
Sources said the government is weighing several options, including reviewing its banking engagements with SBI. Among the measures under consideration are shifting deposits and government accounts to other banks. Officials have reportedly begun compiling details of accounts maintained by various departments, deposits and transaction volumes handled through SBI across the state.
The dispute concerns Plot No. 1A, measuring 5.09 acres in Survey No. 83/1 at Hyderabad Knowledge City in Raidurg Panmaktha village, Serilingampally mandal of Rangareddy district. The land was auctioned by TGIIC on June 1 under the state’s asset monetisation programme and fetched 1,038.36 crore, translating to nearly `204 crore per acre.
SBI has challenged the auction in the high court, contending that it purchased the land from the erstwhile Andhra Pradesh government in 2010 after paying the full sale consideration of `13.33 crore. The bank has maintained that it continues to be in possession of the property and argued that the original allotment did not contain any provision allowing the government to resume or auction the land after an outright sale.
Officials, however, contend that the allotment required SBI to construct its corporate office within a stipulated period. According to them, the bank failed to utilise the land in accordance with the allotment conditions, following which TGIIC cancelled the allotment and proceeded with the auction.
Sources said that during discussions held before the litigation, the government had offered alternative land to SBI as part of a possible resolution. Officials claim that the bank had indicated its willingness in principle to consider the proposal, making its subsequent decision to approach the high court a matter of concern for the government. SBI has around 1,200 branches across Telangana.
Nearly 80% of government employees maintain salary accounts with the bank, while a substantial portion of subsidies and welfare benefits are routed through SBI. Officials said that a decision on the future course of action could be taken after a comprehensive review of the state’s financial dealings with SBI.
Landing in trouble
SBI claims it bought the 5.09-acre Raidurg plot in 2010 for `13.33 crore and remains in possession
Govt says it offered alternative land to SBI before the litigation
SBI has about 1,200 branches in Telangana; around 80% of government employees hold salary accounts with the bank
Review underway of govt accounts, deposits and transaction volumes handled by SBI across Telangana
