State Bank of India (SBI) is set to become the latest major company to invest in the proposed Bharat Future City near Hyderabad. The Telangana government has agreed to allot 10 acres of land to SBI for setting up a data centre.
The land is located in Mir Khanpet village of Kandukur mandal in Rangareddy district. According to an official, the allotment is part of the government’s plan to develop Bharat Future City as a major centre for artificial intelligence (AI), data centres and high-performance computing.
Several large data centre projects are already being planned in the Future City area. Amazon Web Services (AWS) was among the first major companies to announce a large investment in the region. Projects by TCS HyperVault and CtrlS have also been announced.
The Telangana government has offered alternative land to the State Bank of India (SBI) to settle a long-running land dispute. The dispute involves over a five-acre land parcel in Raidurg, Hyderabad. The issue already reached the court, and the government tried to resolve it through discussions.
What is the land dispute?
The dispute relates to a 5.09-acre land parcel located in Raidurg Knowledge City. The Telangana Government Industrial Infrastructure Corporation (TGIIC) auctioned the land on June 1. The auction generated a record revenue of ₹1,038.36 crore, with the land fetching nearly ₹204 crore per acre, making it one of the most expensive land deals in the region. However, SBI challenged the auction in the High Court. The bank argued that it had purchased the land in 2010 for ₹13.33 crore and that the property was still under its possession.
What Government said?
Government officials claim that SBI violated the conditions under which the land was originally allotted. According to them, the land was provided to SBI at a concessional rate for constructing a corporate office and related facilities. One of the key conditions was that the development work had to be completed within two years.
Officials said SBI took possession of the land in January 2011 after signing the sale agreement but failed to carry out any significant construction work. As a result, the then Andhra Pradesh Industrial Infrastructure Corporation and later TGIIC issued several notices to the bank.
After granting multiple extensions, the government rejected SBI’s request for further extension in December 2020 and decided to reclaim the land. TGIIC subsequently cancelled the land allotment on January 22, 2021. Officials stated that the corporation formally took back possession of the land through a panchanama on February 1, 2021. The dispute is now before the High Court and the decision is yet to be announced.
Why is the Land Important?
The disputed land is located in Raidurg, one of Hyderabad’s most valuable commercial areas. Recently, land in the same area was auctioned by the Telangana Industrial Infrastructure Corporation (TGIIC) for a record Rs 237 crore per acre, making it one of the costliest land parcels in the city.
What the Government Offered?
To end the dispute, the Telangana government offered SBI three alternative options:
- Option 1: A 2.5-acre plot near Plot No. 18 in Raidurg Knowledge City.
- Option 2: A 2.5-acre plot at Osman Nagar, near the Outer Ring Road.
- Option 3: 10 to 15 acres of land in Bharat Future City instead of the five-acre Raidurg land.
The government had asked SBI to choose any one of these options.
What Did SBI Do?
SBI officials visited the proposed sites at Osman Nagar and Bharat Future City. The bank informed the Telangana government that it would place the proposal before its headquarters and the SBI Board for approval before taking a final decision. The bank planned to use the land for setting up a data centre or other major facilities.
How Did the Dispute Begin?
In August 2010, SBI received five acres of land in Raidurg at a concessional price of Rs 13.30 crore per acre to build its corporate office. However, in January 2021, TGIIC cancelled the land allotment, and the government officially took back the land the following month.
What Happened Before the Auction?
Before auctioning the Raidurg land, TGIIC officials met SBI and suggested alternative land. SBI officials also inspected the proposed sites. However, later SBI approached the court and sought to stop the auction. Just one day before the e-auction, the bank formally rejected the government’s offer of alternate land. The matter reached the High Court, which stayed the auction process.
