Tribunal Rejects Brookfield's Rs 1,080 Crore Bid: A Twist in IL&FS Property Deal

The National Company Law Tribunal (NCLT) has dismissed Chronos Properties' Rs 1,080 crore bid for IL&FS's flagship Bandra Kurla Complex property, allowing IL&FS to revise the transaction value to Rs 1,481 crore. The tribunal upheld IL&FS's right to alter the Letter of Intent indicating a concluded contract.

The National Company Law Tribunal in Mumbai has dismissed Chronos Properties' Rs 1,080 crore bid for the flagship Bandra Kurla Complex property owned by Infrastructure Leasing and Financial Services (IL&FS). The decision came after IL&FS sought a revision of the bid to a new valuation of Rs 1,481 crore.

The tribunal found that the Letter of Intent between IL&FS and Chronos is a binding contract but included clauses allowing IL&FS to change the financial terms unilaterally. A letter dated August 16, 2024, which increased the bid price, was upheld as valid.

IL&FS provided valuation reports indicating the property's market value at Rs 1,722 crore, supporting their decision to enhance the transaction value. Chronos has been ordered to submit a performance guarantee within 30 days or face disqualification under the request for proposal terms.

(With inputs from agencies.)