Hackers have encrypted the servers, database and files of TG-iPASS, the Telangana government portal that issues permissions for setting up industries, and the Industries Department has lodged a complaint with the Telangana Cyber Security Bureau. The attack has crippled the application system and left investors and companies waiting without a clear timeline.

The breach began on the night of October 22. Around 11:36 PM, the TG-iPASS application went offline. At the same time, the technical team could not connect to the portal’s database server. The cloud company that hosts TG-iPASS’s server infrastructure, Cloud 4C, was contacted, but the problem remained unresolved. Soon after, the SQL Server Agent service also stopped running.

A closer examination pointed to a ransomware-style attack on the server system. The attackers encrypted the data and other files on the portal and added a new ‘.vgb’ extension to the affected files. To get the files back, they demanded that the victims email a specified address from a particular machine ID. The attack hit application submissions, processing and other services tied to the portal.

Industries Department Joint Director Sanga Suresh filed the complaint with the Cyber Security Bureau. The department asked the bureau to quickly identify the affected servers and systems and isolate them so the attack would not spread. It also asked officials to preserve server logs, disk images and other digital evidence. A forensic investigation, it said, is needed to determine how the attackers got in and how far the damage reaches.

Recovery efforts and what remains unclear

The Cyber Security Bureau said its team had been deployed and had temporarily fixed the problem. Officials said they are working to restore the TG-iPASS application and database using the available data. They also said passwords and access rights have been changed and security monitoring has been increased. The bureau has put the TG-iPASS website and application under surveillance to prevent similar incidents in the future.

Key questions remain open. The reports do not say how many applications were stalled, how many industrialists and organisations faced problems, or whether any citizen or investor data has been stolen. The recovery has only been described as temporary, and the full scope of the damage has not been made public.

A pattern of attacks on state systems

TG-iPASS is not the first state government system to be targeted. Earlier, the Telangana Police website, the High Court website and the official X account of the Cyber Security Bureau were all attacked. Taken together, these incidents raise uncomfortable questions about how well the state protects its digital infrastructure.

The source report also made a broader claim, without citing a specific source for the figure, that cybercriminals are siphoning around Rs 5 crore a day from the state and that the government has not responded firmly enough. That claim has not been independently verified, but it reflects a growing concern that cyber fraud and data theft are outpacing defences.

Why this matters for Telangana

This is a direct issue for Telangana. TG-iPASS is the gateway for companies that want to set up or expand industrial projects in the state. When that gateway goes dark, investors face delays, and the state’s reputation as a place to do business takes a hit. The same portal also holds sensitive business and approval data, which makes the breach more than a technical glitch.

Key state government websites and their servers have been left without adequate security, and cyber attacks are taking place on them without restraint.

That line captures the core concern. A state portal that handles industrial approvals should not be easy to lock down with ransomware. Whether this incident was an isolated breach or a symptom of weak protections across government systems will depend on what the forensic investigation finds and how transparently the state reports its findings.

For now, the immediate questions are practical. Are pending applications being processed? Is any data at risk of leaking? Will affected companies receive clear updates? Until the state answers these, TG-iPASS users are left guessing about the reach of an attack that has already shut down one of the most important digital services in the state.