The Supreme Court dismissed a petition filed by the Telangana government challenging the ownership of a 40-acre prime land parcel in Lothkunta.

The Paradise-Shamirpet elevated corridor project, planned along Rajiv Rahadari (State Highway-1), will run 18.1 km from Paradise Junction to the Outer Ring Road near Shamirpet via Trimulgherry, Karkhana, Lothkunta, Alwal, Bolarum and Thumkunta. Around 11.6 km will comprise an elevated six-lane flyover; remaining stretch includes service roads and a short underground tunnel near Hakimpet Air Force Station. The project aims to ease congestion on Secunderabad's busiest traffic corridors, particularly around the Lothkunta railway bridge. In Lothkunta, restaurants, medical shops, bakeries, general stores, sweet shops, tea stalls, automobile workshops and furniture stores have been demolished or await demolition, many serving the neighbourhood for over two decades. Notable losses include Sri Laxmi Reddy Sweets (operating since 2003), a three-year-old hospital at Lothkunta Y-junction, and a watch repair shop near Lakshmi Kala Mandir theatre in Venkatapuram. Demolished government facilities include Secunderabad North Zonal Regional Transport Authority office, Trimulgherry Traffic Police office and Karkhana Traffic Police Station. Land acquisition began in 2024; compensation awards passed March 2026. Project estimated to take three to four years. Once completed, traffic heading towards Shamirpet will move on the elevated corridor instead of internal roads, eliminating bottlenecks on the narrow State highway.

Telangana High Court directed deployment of 10 Army personnel headed by a lieutenant colonel to protect 40-acre property at Lothkunta village (Survey Nos. 1 and 2), Medchal-Malkajgiri district. Order paused pending Friday hearing. Petition filed by Shanta Sriram Constructions alleging HYDRAA Commissioner AV Ranganath violated court orders by entering the land. Court found land falls within Army zone. On July 18, approximately 200 HYDRAA personnel in 50+ vehicles entered property claiming it was government land and demolished containers, tin-sheet structures, office furniture and materials. Court noted three contempt cases already filed against HYDRAA commissioner for repeated violations. Justice Anil Kumar Jukanti made adverse observations, calling commissioner a "habitual offender." Court authorized Army personnel to detain HYDRAA officials and vehicles if further violations occur. State's Advocate General denied allegations, contending HYDRAA did not enter private land. Court lost confidence in state administration due to repeated allegations.

The Supreme Court dismissed the Telangana government's plea challenging a High Court verdict over 40 acres of land at Lothukunta in Secunderabad, ruling the challenge was filed belatedly.

The disputed land comprises Survey Nos. 1 and 2 of Lothukunta village, Malkajgiri mandal. The Telangana High Court ruled in favor of Shanta Sriram Constructions Private Limited.

In January 2024, the High Court set aside proceedings under the A.P. Land Encroachment Act and directed authorities to restore possession of the 40 acres to the construction firm. It restrained authorities from interfering with the firm's possession unless the state secured a decree from a competent civil court.

The state filed a civil suit challenging the firm's claim. The trial court rejected the suit as barred by limitation. A Telangana High Court division bench dismissed the state's appeal on October 7, 2025. The High Court recorded that the division bench judgment had attained finality as the state had not challenged it before the Supreme Court.

In July 2026, the High Court held that the property was private land and directed authorities not to interfere with the firm's possession. The dispute has involved the Hyderabad Disaster Response and Assets Protection Agency (HYDRAA).