State Bank of India (SBI) and the Telangana government have settled the legal dispute over Raidurgam land in Hyderabad with the bank agreeing to withdraw its case filed against the government and accept allocation of an alternative site.

The State government has also agreed to offer an additional plot in the upcoming Future City for a data centre to be set up by the bank.

Senior officials of SBI and a team of officials from the state government led by Chief Secretary Ramakrishna Rao held talks on the matter on Saturday and entered into an agreement. 

Earlier this month, SBI secured a stay from the Telangana High Court on the auction of the land by the Telangana Industrial Infrastructure Corporation (TGIIC) in Raidurgam here which had earlier allotted the property to the bank.

This led to a confrontation between the State Government which examined the option of withdrawing its key financial transactions from SBI. An upset Chief Minister A Revanth Reddy took up the matter with the Finance Ministry and top leadership of SBI, according to sources. 

Published on June 28, 2026