MUMBAI: IL&FS is set to pursue new valuations for its headquarters located in the Bandra Kurla Complex (BKC). A 25% increase in its current valuation is anticipated following approval from the National Company Law Tribunal (NCLT) to consider the recent surge in Mumbai’s real estate market, according to a source familiar with the situation.
The tribunal has mandated Brookfield Asset Management, the global institutional investor, to renew the performance guarantee originally submitted during the bidding process for the property in 2022.
“The existing valuation of ₹1,722 crore was established in 2024, and new valuations are projected to be between ₹2,000 and ₹2,500 crore based on recent transactions,” the source added.
The dispute relates to Chronos, a subsidiary of Brookfield, which secured a bid for the IL&FS Financial Centre. The original Letter of Intent (LoI) for this bid was issued in 2022. Recent valuation reports indicate that the asset’s market worth has increased significantly to approximately ₹1,722 crore, surpassing the initial bid amount.
IL&FS contended that upholding the previous terms would contradict the legal requirement to sell assets at maximum value.
A major sticking point was the performance bank guarantee provided by Chronos as part of the bid, which, alongside other supplementary demand drafts, expired in April 2025. IL&FS claimed this expiration disqualified Chronos according to bidding rules and requested that the tribunal dismiss Chronos’s previous application for enforcing the original agreement.
In response, Chronos requested the tribunal to excuse the delay or permit direct deposit of the guarantee with the tribunal rather than with IL&FS. Despite the expiration, IL&FS had not specified renewal deadlines; thus, the NCLT ruled that Chronos was not disqualified at this time. However, Chronos must submit a new guarantee within 30 days to avoid disqualification, and IL&FS retains the right to adjust the LoI’s terms and price.
