IL&FS moves NCLT to scrap Brookfield's Rs 1,080-cr bid for BKC property

The Infrastructure Leasing and Financial Services Ltd (IL&FS) has approached the National Company Law Tribunal (NCLT) to scrap the Canadian asset management firm Brookfield's Rs 1,080-crore bid for its flagship Bandra Kurla Complex property.

IL&FS filed a petition in NCLT Mumbai bench on June 26, seeking to dismiss the Brookfield-backed bid for its flagship BKC property, the IL&FS Financial Centre (TIFC), citing bidder disqualification and non-compliance with bidding conditions.

In its petition, IL&FS alleged that an affiliate of Brookfield, Chronos Properties, was required to maintain Performance Guarantee until the execution of definitive agreements.

Chronos Properties failed to renew a Rs 108-crore Performance Guarantee, which expired in April, 2025, IL&FS said in the petition, adding that this entitles IL&FS to invoke the performance guarantees in addition to pursue remedies including disqualifying the bidder.

 

"The failure to maintain its bid security has extinguished any entitlement to proceed with the acquisition. The company has, therefore, urged the NCLT to declare Chronos' application infructuous and dismiss it," said the petition.

IL&FS has emphasised that 'value maximisation' is an important tenets for the public interest board's mandate under the court-supervised resolution process and approved resolution framework and sought Brookfield to revise its offer in line with the updated valuation, as per the filing with NCLT shoring resolution progress, the petition added.

IL&FS further stated that its new board has till date discharged a total debt of Rs 45,000 crore, while maintaining the overall debt resolution target at Rs 61,000 crore.