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