NCLAT allows withdrawal of insolvency against Mahagun after settlement | Real Estate News
The NCLAT permitted Mahagun to withdraw its insolvency proceedings following a settlement with its financial creditor, IDBI Trusteeship.Summary
The National Company Law Appellate Tribunal (NCLAT) has allowed NCR-based real estate developer Mahagun to withdraw insolvency proceedings after reaching a settlement with its financial creditor, IDBI Trusteeship Services Limited. The proceedings had begun after IDBI filed a petition alleging a default of ₹256.48 crore related to non-convertible debentures (NCDs) for the Mahagun Manorialle project in Noida. Initially, the National Company Law Tribunal (NCLT) admitted the insolvency application, but this was challenged at the NCLAT, which remanded the matter for reconsideration. A Settlement Agreement was reached on February 12, 2026, leading IDBI to request withdrawal of the petition, which the NCLT approved on February 17, 2026. The NCLAT has also previously set aside another insolvency proceeding against Mahagun, directing the NCLT to rehear the petition. Mahagun stated its commitment to delivering apartments to customers and views this resolution as a positive step for the company, allowing it to focus on project execution and customer confidence. Mahagun Manorialle is a luxury residential development in Noida, featuring approximately 400 residences.
(Source：Hindustan Times)