Brookfield-Backed Chronos Properties Renews Bank Guarantee for IL&FS Office Premises

New Delhi, Jan 23 (PTI) Brookfield-backed Chronos Properties has taken a significant step to stay in the race for acquiring the flagship Bandra Kurla Complex property of Infrastructure Leasing and Financial Services (IL&FS). The company has renewed a ₹148 crore bank guarantee, ensuring its continued eligibility as a bidder for the prestigious property.

In an affidavit filed before the National Company Law Appellate Tribunal (NCLAT), Chronos Properties confirmed that it has tendered three demand drafts totaling ₹148 crore with the registrar of the Mumbai bench of the National Company Law Tribunal (NCLT) on December 19, 2025. This action was taken in compliance with an earlier NCLAT directive.

On December 5, 2025, the NCLAT had instructed Chronos Properties to renew its bank guarantee within a month to avoid disqualification as a bidder for the IL&FS Financial Centre (IL&FS HQ) at BKC, Mumbai. In its affidavit, Chronos Properties stated, “The appellant has complied with the direction passed by this tribunal in its order dated December 5, 2025, within the time frame (30 days) provided therein.”

The NCLAT also issued an interim order on December 5, directing the debt-ridden IL&FS group not to create third-party rights on its headquarters until the appeal is finally decided. The next hearing in the appeal filed by Brookfield, challenging the NCLT's recent order upholding IL&FS's right to enhance the purchase consideration for the headquarters property, is scheduled for February 2.

Chronos Properties' original bid for the asset was ₹1,080 crore, which was approved through IL&FS' four-tier resolution mechanism. However, IL&FS subsequently revised the consideration to ₹1,481 crore, citing provisions in the Letter of Intent (LOI) that allow this, updated valuation reports, and its obligation to maximize value under the IL&FS Resolution Framework. The bank guarantee is in accordance with the revised valuation.

Chronos contested this revision before the NCLT. While affirming IL&FS' contractual powers, the NCLT held that Chronos' failure to renew the bank guarantee could not, by itself, lead to disqualification. The tribunal granted Chronos time to submit a fresh bank guarantee equivalent to 10 percent of the bid value with the tribunal registrar.

On December 1, the NCLT dismissed the ₹1,080 crore bid by Brookfield-backed Chronos Properties to acquire IL&FS' Bandra Kurla Complex property. This decision has added further complexity to the ongoing legal battle over the valuable real estate asset.