IL&FS Moves NCLT to Scrap Brookfield’s ₹1,080 Crore Bid for Bandra Kurla Complex Property

Infrastructure Leasing and Financial Services Limited (IL&FS) has filed a petition before the National Company Law Tribunal (NCLT) Mumbai bench seeking to invalidate Brookfield Asset Management’s bid for its flagship Bandra Kurla Complex (BKC) property. The petition challenges the ₹1,080 crore offer made by Brookfield’s affiliate, Chronos Properties, citing non-compliance with bidding conditions.

IL&FS submitted the petition on June 26, 2025, requesting the tribunal to dismiss the bid on grounds of bidder disqualification. The company alleged that Chronos Properties failed to maintain a required Performance Guarantee worth ₹108 crore, which expired in April 2025. According to IL&FS, this breach of contract entitles the company to invoke the performance guarantees and take other legal measures, including disqualifying the bidder from the process.

The petition asserts that the failure to renew the Performance Guarantee extinguishes Chronos Properties’ right to proceed with the acquisition of the IL&FS Financial Centre (TIFC) located in BKC. IL&FS has urged the tribunal to declare the bid invalid and dismiss the application.

In the filing, IL&FS underlined that value maximization remains a fundamental principle guiding the court-supervised resolution process and the resolution framework approved by the board. The company called on Brookfield to revise its bid to reflect updated asset valuations, indicating ongoing efforts to optimize recovery under the resolution plan.

IL&FS also highlighted progress made under the new board in managing the company’s significant debt. The company reported having repaid approximately ₹45,000 crore to date, while continuing to target a total debt resolution of ₹61,000 crore. These developments are part of the broader restructuring and resolution process overseen by the NCLT to address IL&FS’s financial challenges.

The disputed property, IL&FS Financial Centre, is a key commercial asset within the Bandra Kurla Complex, a major business district in Mumbai. Its sale forms a crucial part of the company’s asset monetization strategy aimed at improving its financial position and fulfilling commitments to creditors.

Brookfield, through its affiliate Chronos Properties, emerged as a leading bidder in the asset sale process. However, IL&FS’s petition contests the validity of the bid due to the alleged lapse in maintaining bid security, which is a mandatory requirement under the bidding terms.

This legal move comes amid heightened scrutiny of asset sales and restructuring efforts involving stressed infrastructure companies in India. IL&FS, which had faced financial difficulties in previous years, is working under court supervision to resolve its debt and restructure its business operations.

The petition’s outcome will influence the next steps in the resolution process for the IL&FS Financial Centre asset and could affect the broader strategy for debt recovery by the company.

As per reports, the NCLT is expected to hear the matter in the coming weeks. Market watchers and stakeholders are closely observing developments due to the potential impact on asset monetization and the restructuring landscape.

Image source- scobserver.in