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Tribunal backs value maximisation; Chronos gets 30 days to submit performance guarantee.

NCLT Rejects Chronos Properties’ ₹1,080 Cr Bid, Upholds IL&FS’ Right to Raise BKC Property Price.                                                                                                        

The National Company Law Tribunal (NCLT) has dismissed Brookfield-backed Chronos Properties’ ₹1,080 crore bid for IL&FS’s flagship Bandra Kurla Complex (BKC) property, upholding IL&FS’s contractual right to revise the deal value. In its November 28 order, the tribunal confirmed that the 2022 Letter of Intent is a binding contract but includes clauses allowing IL&FS to unilaterally amend financial terms under the court-approved resolution framework. Accordingly, IL&FS’s revised demand of ₹1,481 crore was deemed valid, supported by fresh valuations placing the property’s fair-market value at around ₹1,722 crore. The NCLT also ruled that Chronos is not immediately disqualified for delays in renewing its performance guarantee but directed the company to deposit 10% of the bid amount within 30 days. Failing this, disqualification under RFP rules will apply. Brookfield stated it will explore appellate remedies regarding IL&FS’s unilateral price revision.