The Telangana government and the State Bank of India (SBI) have reached an amicable resolution to a long-standing dispute over a five-acre land parcel in Hyderabad’s Raidurg area, officials said on Saturday. The breakthrough follows a series of discussions aimed at resolving the disagreement between the state and the public sector lender over the allocation and subsequent auction of the land.

According to an official release, Chief Secretary K. Ramakrishna Rao led the state delegation in talks with SBI representatives. The discussions were a continuation of earlier meetings held on June 22, followed by site visits conducted on June 23 to examine alternative land proposals suggested by the state government.

During the latest round of talks, SBI agreed in principle to the alternative land options provided by the Telangana government. However, bank officials clarified that the final decision will be taken only after obtaining approval from the SBI board. The release also noted that further steps will be aligned with ongoing court proceedings.

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The dispute originated from a five-acre land parcel in Raidurg that was reportedly allotted to SBI in 2010 by the then undivided Andhra Pradesh government for construction of its corporate headquarters. However, the project did not materialise, and the Telangana Industrial Infrastructure Corporation (TGIIC) later auctioned the land, fetching over ₹200 crore per acre.

SBI challenged the auction in court and secured a stay from the Telangana High Court, leading to tensions between the bank and the state government. The disagreement had escalated at one point, with reports suggesting the state considered shifting its accounts from SBI. However, recent discussions have helped ease tensions between the two sides. Officials said the matter is expected to be concluded after completion of necessary statutory procedures and approval from the SBI board, marking a step toward resolving the dispute through mutual agreement rather than prolonged legal confrontation.

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