NCLT Rejects Chronos Properties' ₹1,080 Crore Bid for IL&FS BKC Property

The National Company Law Tribunal (NCLT) in Mumbai has dismissed the ₹1,080 crore bid by Chronos Properties, backed by Brookfield, to acquire the IL&FS Financial Centre at the Bandra Kurla Complex (BKC). The tribunal's decision, announced on November 28, 2025, has significant implications for the ongoing resolution process of the IL&FS group.

The NCLT's order stated that the Letter of Intent (LoI) dated March 21, 2022, between IL&FS and Chronos Properties is a concluded and binding contract. However, the LoI includes clauses that grant IL&FS the right to unilaterally amend, modify, or supplement the terms of the agreement, including financial terms, under the court-approved resolution framework.

IL&FS had earlier approached the NCLT to reject Chronos Properties' bid, arguing that the bidder had failed to comply with the bidding conditions and maintain the performance guarantee. IL&FS also submitted fresh valuation reports indicating an average fair-market value of approximately ₹1,722 crore for the property. The tribunal found that revising the transaction value to ₹1,481 crore aligns with the value-maximization objective mandated under the resolution process.

On the performance guarantee, the tribunal ruled that no immediate disqualification arises for Chronos Properties. The tribunal directed Chronos to tender the performance guarantee, equivalent to 10% of the bid amount, to the NCLT within 30 days. Failure to do so would result in disqualification under the Request for Proposal (RFP) terms.

IL&FS had emphasized that 'value maximization' is a crucial tenet for the public interest board's mandate under the court-supervised resolution process. The company sought to have Brookfield revise its offer in line with the updated valuation, as per the filing with the NCLT. Brookfield Asset Management, on the other hand, stated that the NCLT's finding that the LoI is a concluded contract between the parties does not align with their argument. They intend to pursue further legal remedies, including appellate avenues, in accordance with the law.

The IL&FS Financial Centre at BKC is a significant asset in the IL&FS group's portfolio. The property's value and strategic importance make it a key focus in the ongoing resolution process, which aims to maximize returns for stakeholders and ensure the financial stability of the IL&FS group.