Brookfield-Backed Chronos Properties Renews ₹148 Crore Bank Guarantee for IL&FS BKC Property Bid
In a significant development in the ongoing corporate insolvency resolution process, Brookfield-backed Chronos Properties has renewed a substantial bank guarantee to maintain its position as a bidder for the flagship office property of Infrastructure Leasing and Financial Services (IL&FS) located in Mumbai's prime Bandra Kurla Complex (BKC). The firm has submitted a renewed bank guarantee worth ₹148 crore, complying with directives from the National Company Law Appellate Tribunal (NCLAT).
Compliance with NCLAT Order and Timely Submission
Chronos Properties recently filed an affidavit before the insolvency appellate tribunal NCLAT, confirming that it has tendered three demand drafts aggregating to ₹148 crore with the registrar of the Mumbai-bench of the National Company Law Tribunal (NCLT) on December 19, 2025. This action was taken in response to an earlier order issued by NCLAT on December 5, 2025, which directed the company to renew its bank guarantee within a month to avoid disqualification as a bidder for the IL&FS Financial Centre, also known as the IL&FS headquarters at BKC.
The appellant has complied with the direction passed by this tribunal in its order dated December 5, 2025, within the time frame (30 days) provided therein, stated Chronos Properties in its affidavit. This timely renewal ensures that the firm remains in the race for acquiring this high-value commercial asset.
Background of the Dispute and Revised Valuation
The acquisition process has been marked by legal disputes and revised valuations. Chronos Properties' original bid for the IL&FS BKC property stood at ₹1,080 crore, which was approved through IL&FS' four-tier resolution mechanism. However, IL&FS subsequently revised the purchase consideration to ₹1,481 crore, citing provisions in the Letter of Intent (LoI) that allow such adjustments, updated valuation reports, and its obligation to maximise value under the IL&FS Resolution Framework. The renewed bank guarantee of ₹148 crore aligns with this revised valuation, representing 10% of the bid value as required.
This revision was contested by Chronos before NCLT, leading to a series of legal proceedings. On December 1, NCLT dismissed the ₹1,080-crore bid by Brookfield-backed Chronos Properties to acquire the property. However, in a related order, NCLT affirmed IL&FS' contractual powers while ruling that Chronos' failure to renew the bank guarantee could not, by itself, lead to disqualification. The tribunal granted Chronos time to submit a fresh bank guarantee equivalent to 10% of the bid value with the tribunal registrar.
Interim Order and Upcoming Hearing
In its interim order on December 5, NCLAT also directed the debt-ridden IL&FS group not to create third-party rights on its headquarters until the appeal is finally decided. This measure aims to preserve the asset's status during the resolution process. NCLAT has scheduled its next hearing for February 2 on the appeal filed by Brookfield, which challenged NCLT's recent order upholding IL&FS's right to enhance the purchase consideration for the headquarters property. The appeal contests the decision based on the contractual provisions of the LoI and the value-maximisation principle underpinning the IL&FS resolution framework.
The renewal of the bank guarantee by Chronos Properties underscores the firm's commitment to pursuing the acquisition despite the increased valuation and legal hurdles. This move keeps the competitive bidding process alive for one of Mumbai's most prestigious commercial properties, with implications for the broader real estate and corporate insolvency landscape in India.
