IL&FS Moves NCLT To Scrap Brookfield’s Rs 1,080-Crore Bid For Headquarters In Mumbai's BKC
IL&FS has sought to remove Brookfield as the successful bidder for its BKC headquarters.
Infrastructure Leasing and Financial Services Ltd. has moved the National Company Law Tribunal to scrap Canadian asset management firm Brookfield’s Rs 1,080-crore bid for its headquarters in Mumbai's Bandra Kurla Complex.
The bid required Brookfield to maintain performance guarantees till a definitive agreement was closed. Brookfield affiliate Chronos Properties failed to renew the performance guarantee in April.
IL&FS has sought to remove Brookfield as the successful bidder for its BKC headquarters.
"The successful bidder is mandatorily required to renew/extend the performance guarantee at least 15 days prior to the date of its expiry/last date for encashment of the demand draft," IL&FS said in its petition dated June 18.
IL&FS said that Brookfield failed to renew a Rs 108-crore demand draft that expired in April this year. This is against the terms laid out in the letter of intent and original bidding documents from 2022.
The matter is currently sub judice, and NCLT has told IL&FS to not create any third-party rights on the Bandra Kurla Complex property.
Till Brookfield closes its deal with IL&FS, or till the case is heard out in tribunal, the property will continue to remain vacant without any revenue coming in from rentals or leases.
BKC is the premier business district of Mumbai. It houses the head offices of prominent domestic and multinational financial companies.
Brookfield refused to comment on the story, saying that the matter is sub judice.
