Telangana High Court has hit pause on sale of five acres at Hyderabad Knowledge Centre after a Thursday hearing on two writ petitions from State Bank of India. The bank argued land set for e-auction by Telangana Industrial Infrastructure Corporation Limited (TGIIC) on May 28 belonged to it,calling the auction arbitrary.
Justice N.V. Shravan Kumar issued stay order,valid for three weeks. He also instructed TGIIC to file a counter affidavit,with Gaura Ventures Private Limited,the successful bidder,required to respond to court notice. Senior counsel B.S. Prasad pointed out auction occurred on May 28, a public holiday for Bakrid,suggesting lack of transparency .
Prasad traced land's history,noting it was allocated to SBI over 16 years ago by then Andhra Pradesh Industrial Infrastructure Corporation Limited. He argued bank wasn't delaying land development,blaming administrative hurdles,COVID-19 pandemic and lockdowns for construction delays.
In response,Additional Advocate General T. Rajinikanth Reddy,for state,claimed SBI hadn't used land effectively since allotment. But Prasad countered,noting other firms like IKEA,Phoenix, Deloitte,and Infosys got extensions in 2021 to develop their lands,while SBI's request was denied.
Prasad said SBI already set up a branch and three ATMs on site. He reminded court SBI had sought judicial help before over TGIIC's land allotment cancellation,which court had overturned. Given this,he argued e-auction was illegal,arbitrary,against natural justice.
Stay on auction highlights ongoing land use disputes in region. Established banks vs . new bidders…who prevails?
