Who Is Behind Sbi Litigation On Raidurg Land

The ongoing dispute between the Telangana government and the State Bank of India (SBI) over a parcel of land in Hyderabad’s Raidurg area appears to be kicking up a political row.

According to sources, Chief Minister A Revanth Reddy is said to suspect a political conspiracy behind SBI’s decision to challenge the auction of the Raidurg land, claiming ownership over five acres in the same area.

On Monday, senior SBI officials held discussions with the state’s Chief Secretary at the Telangana Secretariat. According to sources, the state government expressed strong dissatisfaction over SBI’s handling of the Raidurg land issue.

During the discussions, officials are believed to have examined the possibility of withdrawing government accounts and financial transactions from SBI, a move that could have significant implications for the country’s largest public sector bank.

The controversy revolves around a five-acre plot in Survey No. 83/1 of Raidurg. The land had reportedly been allotted to SBI years ago but remained unused.

The Telangana State Industrial Infrastructure Corporation (TSIIC) cancelled the allotment in 2021 during the previous BRS government headed by former Chief Minister K Chandrasekhar Rao.

Sources said the state government had recently offered SBI an alternative parcel of land and that preliminary consultations between the two sides had received a positive response.

However, the situation took an unexpected turn when SBI approached the Telangana High Court, triggering a legal dispute that has generated considerable political attention.

The controversy has also put the spotlight on SBI Chairman Challa Srinivasulu Setty, a native of Telangana.

Hailing from Peddapothulapadu village in Jogulamba Gadwal district, Setty rose from a modest rural background to become chairman of India’s largest bank in August 2024 after joining SBI as a probationary officer in 1988.

Political observers have questioned whether the SBI leadership could have intervened earlier to prevent the dispute from escalating into a confrontation between the bank and the state government.

Critics argue that the matter could have been resolved amicably through negotiations, particularly when the government was willing to provide alternative land.

The Telangana government is reportedly examining the circumstances that led SBI to adopt a confrontational legal approach despite ongoing discussions.

Sources said Revanth Reddy suspects the hand of some opposition leaders in pressuring the SBI chairman to drag the issue to court.

There is speculation in political circles that the state government may raise the issue with the Prime Minister’s Office, the Reserve Bank of India and the Union Finance Ministry.

SBI, however, maintains that it has a valid legal claim over the property.

The bank contends that it purchased the land from the then Andhra Pradesh government through the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) in 2007 for Rs 13.33 crore and possesses registered sale deeds establishing ownership.

Bank officials have argued that land legally purchased through a registered transaction cannot be unilaterally reclaimed by the government, raising questions over the legality of TSIIC’s cancellation of the allotment.