FCC

NCLAT rejects HDFC plea opposing sale of IL&FS BKC property

2023-03-06

The National Company Law Appellate Tribunal (NCLAT) rejected HDFC's request for a hold on Brookfield Asset Management's acquisition of the IL&FS headquarters in Mumbai's Bandra Kurla Complex (BKC). The sale of the property is in accordance with the updated resolution framework, which the appellate tribunal approved in March 2020, according to a two-member NCLAT bench, and thus cannot be used as a barrier to moving forward with the proposal's acceptance.

As part of a lease rental discounting arrangement, Housing Development Finance Corporation Ltd. has offered to grant a loan to IL&FS in the amount of $4 billion..

The cash flows produced by Infrastructure Leasing & Financial Services Ltd's usage of the TIFC property, whose cash flows were assigned in favour of HDFC, were to be used to repay the facility. Yet as part of its strategy to cut debt, the newly in charge of the indebted IL&FS chose to sell the property..

On September 23, 2022, it also received approval from the adjudicating body in accordance with the established method..

HDFC contested this, claiming that the order was issued on September 23, 2022, in contravention of the rules of natural justice, by the adjudicating authority..