Mahagun gets insolvency relief as NCLT clears settlement with IDBI Trusteeship

New Delhi: Mahagun Group has entered into a settlement with IDBI Trusteeship Services that had initiated insolvency proceedings against the real estate developer, giving hope to homebuyers associated with its ongoing project in Noida.

The National Company Law Tribunal (NCLT) on February 17 allowed withdrawal of the insolvency petition following a request from IDBI Trusteeship, which represents holders of Mahagun's non-convertible debentures, according to court documents.

The NCLT had in August last year ordered initiation of corporate insolvency resolution process against Mahagun on IDBI Trusteeship's petition claiming default on repayment of ₹260 crore.

The appellate tribunal in November set aside the NCLT order on Mahagun's appeal and sent the matter back the NCLT for fresh consideration. Meanwhile, Mahagun and IDBI Trusteeship entered into the settlement agreement on February 12, 2026, and the latter moved the NCLT to withdraw the insolvency petition.

Work on Mahagun's residential project, Mahagun Manorialle at Jaypee Wish Town in Sector 128 of Noida, is currently stuck. It has 400 units across six towers of 40 floors each.

The company has prepared a roadmap to deliver the housing units in a phased manner and has accelerated construction activities, said a spokesperson. It has to deliver the project by March 2027 under the settlement deal.

"Company remains committed to delivering possession of apartments to our customers with the quality and standards that we have consistently upheld. The successful resolution of the proceedings marks an important step forward for the company, enabling us to focus on timely execution, customer confidence, and long-term value creation," the spokesperson said.

The group has delivered 20 residential and commercial projects in the National Capital Region.

According to IDBI Trusteeship's insolvency petition, the date of default was September 30, 2023.

As per the application, around December 2020, Mahagun sought financial assistance from Asia Real Estate II India Opportunity Trust by issuance of non-convertible debentures. The fund had disbursed ₹355 crore to the developer.