Infrastructure Leasing & Financial Services (IL&FS), a non-banking finance company in trouble, sells commercial properties in GIFT City, Gujarat. These properties are owned by IL&FS subsidiary Sabarmati Capital Two Ltd (SCTL) and span over 540,000 sq ft. They will be put up for auction through the Swiss Challenge process. The sale includes 58 commercial offices across 21 floors of the GIFT TWO tower, including spaces already leased to Tata Consultancy Services. SCTL was created to develop commercial spaces in GIFT City and has constructed two towers, GIFT ONE and GIFT TWO, totalling over 1.61 million sq ft. GIFT TWO, which started operations in 2016, comprises a basement, ground floor, and 28 upper floors, covering 0.8 million sq ft. Although GIFT City owns the land, the built-up area belongs to IL&FS subsidiaries under a 99-year lease since 2013. Monetisation of real estate assets is an important part of IL&FS resolution, and sale of office space in GIFT City 2 forms part of the same process, said an IL&FS spokesperson. IL&FS has been working to address its debt crisis since it failed to meet repayment obligations in September 2018, which significantly affected India's non-banking finance sector. The government replaced the IL&FS board to initiate debt resolution efforts. Recent disclosures indicate that IL&FS has addressed debts exceeding Rs 560 billion and discharged Rs 360 billion across group companies while estimating the overall resolution at Rs 610 billion. In 2022, Brookfield Asset Management successfully bid over Rs 10.8 billion to acquire IL&FS' headquarters in Mumbai's Bandra-Kurla Complex. GIFT City has experienced a surge in momentum due to government initiatives and private sector interest. A July clarification by the Central Board of Direct Taxes exempts income generated by non-resident investors from offshore investments routed through an AIF in an IFSC from taxation. Additionally, Gujarat exempted GIFT City from a long-standing liquor prohibition law to attract foreign investments. GIFT City is becoming a financial hub, hosting over 500 entities, including fintech companies, banks, stock exchanges, and alternative investment funds. It also has India's first bullion exchange with over 100 qualified jewellers on board, indicating its growing significance in the financial landscape.