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IL&FS Moves NCLT to Invalidate Brookfield's Bid for its BKC Headquarters

Written by: Team Angel OneUpdated on: 4 Jul 2025, 3:11 pm IST
IL&FS has moved NCLT to cancel the ₹1,080 crore BKC headquarters deal with CPPL due to expired performance guarantees.
IL&FS Moves NCLT to Invalidate Brookfield's Bid for its BKC Headquarters
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Infrastructure Leasing & Financial Services Ltd. (IL&FS), currently under resolution proceedings, has approached the National Company Law Tribunal (NCLT) to cancel the sale agreement for its headquarters in Mumbai's Bandra-Kurla Complex (BKC). The deal, initially signed with Brookfield-backed Chronos Properties Pvt. Ltd. (CPPL), was valued at ₹1,080 crore.

Performance Guarantee Lapse Sparks Termination Request

IL&FS has cited non-compliance with key bidding conditions as the reason behind seeking the cancellation. Specifically, CPPL failed to renew the performance guarantees, worth ₹108 crore, which were a contractual requirement to stay valid until the signing of the definitive agreement. These guarantees expired on April 16 and 17, 2025. IL&FS noted that the agreement has become invalid since the expiry of these guarantees.

Potential Financial Upside for IL&FS 

The prime BKC property, earlier agreed to be sold for ₹1,080 crore, is now valued at approximately ₹2,000 crore. With this revised valuation, IL&FS believes that finding a new buyer would significantly improve its financial recovery. The company’s move to NCLT aims to explore better value in the current real estate market.

Read More: Reliance Power Clarifies No Impact from SBI's Action on Reliance Communications!

Conclusion

The dispute over the lapsed performance guarantees and the significant appreciation in property value has led IL&FS to reconsider its earlier agreement. The NCLT's verdict will be crucial in determining the next course of action for the distressed financial firm.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 4, 2025, 9:41 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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