The Telangana High Court has issued an interim stay on the auction process of the highly expensive Rayadurgam land in Hyderabad, which recently fetched a record-breaking price. This significant development occurred after the State Bank of India (SBI) approached the court claiming ownership over a portion of the auctioned land. The high court’s order has triggered widespread discussion in the Hyderabad real estate sector, casting a cloud of uncertainty over the multi-crore transaction.
SBI moved the court challenging the e-auction conducted by the Telangana Judicial Industrial Infrastructure Corporation (TGIIC) for the land located in Survey Number 83/1 within the Knowledge City limits of Rayadurgam Panmaktha. Justice N.V. Shravan Kumar heard the petition concerning the dispute over approximately 5 acres of land and ordered a suspension of the auction and all subsequent proceedings for three weeks. The court also issued notices to TGIIC, SBI, and Goura Ventures—the firm that successfully bagged the land in the auction—directing them to file counter-affidavits.
In the auction conducted by TGIIC on May 28, a 6.29-acre land parcel had fetched a historic record price of Rs 237 crore per acre, generating a total of around Rs 1,490 crore. Following this, in another auction held on June 1, a 5.09-acre plot was sold for Rs 204 crore per acre, netting Rs 1,038 crore.
In its petition, SBI argued that the 5-acre land in question was originally allocated to them by the combined Andhra Pradesh government in 2010, for which the then State Bank of Hyderabad (SBH) had paid Rs 13.33 crore. Although the government later cancelled the allocation, triggering a legal battle, SBI contended that it was improper for TGIIC to proceed with the auction while the matter was still sub judice. The High Court has adjourned the case for further hearing.
