Raidurg Land Row On CM’s Agenda In Delhi

Hyderabad: Chief Minister A. Revanth Reddy left on a three-day visit to Mumbai and Delhi on Saturday, a trip that has assumed political significance amid the ongoing dispute between the state government and the State Bank of India (SBI) over the Raidurg land issue. The CM visited Mumbai to attend the wedding of Revati, daughter of Lok Sabha member Supriya Sule, and is scheduled to proceed to Delhi on Sunday.

Sources said Revanth Reddy was also expected to meet Maharashtra Chief Minister Devendra Fadnavis in Mumbai on Sunday to seek cooperation for the construction of the Tummidihatti barrage, a crucial component of the revived Pranahita-Chevella lift irrigation project on the Godavari river.

The Raidurg land issue is expected to dominate his Delhi visit; the matter will also come up in the Telangana High Court at about the same time. Sources said the Chief Minister plans to meet Union finance minister Nirmala Sitharaman and complain against SBI Chairman Challa Sreenivasulu Setty, accusing him of taking a political stand against the state government and attempting to tarnish its image. Senior officials accompanying the Chief Minister were also expected to raise the issue with RBI Chairman Sanjay Malhotra.

The state government believes Setty, a native of the erstwhile Mahbubnagar district, made a sudden U-turn on the issue allegedly for political reasons. Officials pointed out that Revanth Reddy had felicitated Setty after he became SBI Chairman and publicly expressed pride over a Telangana native heading the country's largest bank.

The government was particularly upset that SBI had challenged the state's decision to auction the land despite not undertaking any construction activity on the site for nearly 16 years. Officials said the government had offered SBI an alternative 2.5-acre plot worth around Rs.500 crore and that bank officials had inspected the site and orally expressed willingness to accept it before later approaching the Telangana High Court.

The government suspected political interference behind this reversal and maintained that the cancellation of the original allotment was carried out strictly in accordance with rules governing non-utilisation of allotted land. Sources said the government was also considering taking the matter to Prime Minister Narendra Modi.

According to the government, the dispute dates back to 2010 when the then Andhra Pradesh government allotted five acres in Survey No. 83/1 at Raidurg to State Bank of Hyderabad (SBH) for office construction and related activities. Although the market value of the land was estimated at nearly Rs.200 crore, it was allotted for Rs.13.30 crore to promote development. A sale agreement was executed in January 2011 and possession handed over, but no construction activity was initiated.

APIIC issued a show-cause notice in 2012, while SBH sought repeated extensions in 2016. Following the merger of SBH with the SBI in 2017, the issue remained unresolved. The TSIIC recommended cancellation of the allotment in 2019 due to non-utilisation of the land.

Despite further requests from the SBI for additional time, the state government cancelled the allotment on January 22, 2021, citing failure to utilise the land even after a decade.

SBI challenged the cancellation in the High Court and sought restoration of the allotment. Meanwhile, the government proposed alternative plots at Osmannagar and Gandipet and later advised SBI to withdraw its litigation and seek alternative land. In 2024, TGIIC recommended execution of the cancellation deed and allotment of an alternative site. The government subsequently rejected SBI's request for restoration of the original allotment.

Following High Court directions, TGIIC conducted a hearing on May 4, 2026. Officials claimed SBI representatives orally agreed to accept a 2.5-acre alternative plot valued at around Rs.500 crore. Based on this, the government initiated the process for e-auctioning the Raidurg land. SBI officials later inspected the alternative site but rejected the proposal and moved the High Court again.

TGIIC conducted the e-auction on May 28 and issued a letter of allotment to the highest bidder. The SBI renewed its legal challenge, but the High Court declined to grant a stay and adjourned the matter to June 22.