NCLT allows IL&FS to revise terms in BKC headquarter sale deal with Brookfield affiliate
Bengaluru: The National Company Law Tribunal (NCLT) has upheld the contractual right of Infrastructure Leasing and Financial Services Ltd (IL&FS) to revise the transaction value in the sale of its iconic headquarters, The IL&FS Financial Center (TIFC), in Mumbai’s premier office hub, Bandra Kurla Complex (BKC).
In 2021, Chronos Properties Pvt. Ltd, a subsidiary of investment firm Brookfield, emerged as the highest bidder. ₹1,080 crore for the property as part of the resolution process of debt-laden IL&FS.
The Mumbai Bench of the NCLT, in its order dated November 28, rejected Chronos’ application seeking enforcement of its judgment. ₹1,080 crore bid for TIFC. The court also noted that IL&FS’s letter dated August 16, 2024, ₹1,481 crore is valid and cannot be cancelled.
In June, IL&FS filed a petition in the NCLT, seeking to reject the Brookfield-backed bid for the flagship BKC property on the grounds of disqualification of bidders and non-compliance with tender conditions.
In its order, the NCLT held that the letter of intent dated March 21, 2022 constitutes a signed and binding contract between IL&FS and Chronos. However, the order stated that IL&FS has the right to unilaterally amend the letter, including financial terms, under the framework of the court-approved decision.
one of the first
TIFC was one of the first properties to come up in BKC along with ICICI Bank’s building. The former has a leasable area of approximately 4.5 lakh sq ft.
IL&FS monetizes its assets to manage its debt obligations. Its failure to meet repayment obligations triggered a major liquidity crisis that affected India’s non-banking financial sector in 2018.
The IL&FS spokesperson refused to comment on the NCLT order.
A spokesperson for Brookfield said: “Contrary to IL&FS’ contention, the NCLT found that the LoI (letter of intent) was a signed contract between the parties. We intend to seek remedies, including appeals, in accordance with the law for the dispute regarding IL&FS’s unilateral change of the purchase price.”
The court also noted that IL&FS submitted new valuation reports stating the average fair market value. ₹1,722 crore for the property and the revision of the transaction value is in line with the value maximization objective mandated under the resolution process.
IL&FS group paid its debt ₹48,463 crore to its creditors as of September 2025. ₹61,000 crore debt resolution target, according to the latest status report filed before bankruptcy appellate tribunal NCLAT, news agency Press Trust of India reported in November.
