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Chronos Properties, backed by Brookfield, has renewed an INR 148 crore bank guarantee to remain in contention for acquiring IL&FS headquarters property at Bandra Kurla Complex. The guarantee was submitted to comply with directions issued by the appellate tribunal, which had warned of possible disqualification. The case stems from a dispute over IL&FS decision to revise the property's consideration from INR 1,080 crore to INR 1,481 crore under contractual and valuation provisions. The appeal is scheduled for hearing on February 2.
Brookfield-backed Chronos Properties has renewed an INR 148 crore bank guarantee to remain eligible in the bidding process for the IL&FS Financial Centre, the flagship headquarters property of Infrastructure Leasing and Financial Services at Bandra Kurla Complex in Mumbai. Advertisement
The company informed the National Company Law Appellate Tribunal that it had deposited three demand drafts totalling INR 148 crore with the registrar of the Mumbai bench of the National Company Law Tribunal. This submission was made within the timeline prescribed by the appellate tribunal to avoid disqualification from the bidding process.
The filing followed directions issued by the appellate tribunal, which had asked Chronos to renew the bank guarantee within a period of 30 days. The tribunal had also passed an interim order restraining the debt-laden IL&FS group from creating any third-party rights over its headquarters property until the appeal is finally decided.
Chronos stated in its affidavit that it had complied with the tribunal's order within the stipulated time. The matter is linked to an ongoing legal challenge over the revised purchase consideration for the property.
Chronos original bid for the BKC asset was INR 1,080 crore, which had been approved under IL&FS four-tier resolution mechanism. IL&FS later increased the consideration to INR 1,481 crore, referring to provisions in the letter of intent that permit such a revision, updated valuation reports, and its obligation to maximise value under the IL&FS Resolution Framework. The revised bank guarantee amount reflects this higher valuation.
The upward revision was contested by Chronos before the tribunal. While affirming IL&FS contractual authority to enhance the price, the tribunal observed that the failure to renew the bank guarantee alone could not automatically disqualify the bidder. It allowed Chronos additional time to submit a fresh guarantee equivalent to 10 per cent of the revised bid value.
In a related development, the tribunal had dismissed Chronos earlier INR 1,080 crore bid for the property. The appellate tribunal is scheduled to hear the appeal on February 2, which will determine the next course of action in the long-running resolution process.
Source PTI
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