The Telangana government has initiated a decisive legal move to reclaim a massive parcel of land belonging to the Indian Drugs and Pharmaceuticals Limited (IDPL) in Hyderabad's Balanagar area. This prime real estate, spanning 891 acres and estimated to be worth a staggering Rs 20,000 crore, has become the centre of a renewed tussle between the state and the central government.
Legal Battle Reignited Over Prime Real Estate
In a significant development, the state has directed the Telangana Industrial Infrastructure Corporation (TGIIC) to reopen legal proceedings. The corporation has been instructed to file a writ petition in the high court and secure necessary orders from the Board for Industrial and Financial Reconstruction (BIFR) to resume control of the land. This action comes in response to growing concerns over encroachments on the high-value property. Officials from the Chief Minister's Office (CMO) have also been tasked with conducting a physical inspection of the site and taking steps to remove any illegal occupations immediately.
A Long-Standing Dispute with Divergent Goals
The roots of this conflict trace back to the closure of the IDPL manufacturing unit in 2003. The state's claim was formally asserted in January 2008, when the then Rangareddy district collector wrote to the Centre seeking the land's takeover, citing the unit's shutdown. The Telangana government's stance is that the land was originally acquired by the state decades ago and handed over to IDPL for the specific public purpose of manufacturing life-saving drugs.
However, the BIFR, which had declared IDPL a sick unit, stayed the collector's resumption order at that time and directed the state not to take any coercive action. Since then, despite seeking legal advice that recommended challenging the BIFR orders in court, no concrete legal steps were taken by TGIIC, a point of displeasure for the current government. Officials noted that repeated reminders from the collector, including one as recent as December, yielded little action until this renewed push.
Clashing Intentions for a Lucrative Asset
While both the state and central governments are keen on auctioning the land, their underlying motives differ sharply. The Telangana government views the land as a key resource for mobilising funds for state projects once it regains control. In contrast, the Centre intends to auction the IDPL land to clear the liabilities and settle outstanding dues of the public sector undertaking's former employees. This divergence in purpose adds another layer of complexity to the impending legal showdown, with the TGIIC now expected to move swiftly to safeguard the state's interests in this valuable asset.
