Mahagun gets insolvency relief as NCLT clears settlement with IDBI Trusteeship
Mahagun Group has reached a settlement with IDBI Trusteeship, resolving insolvency proceedings and paving the way for the completion of its Manorialle housing project.Summary
Mahagun Group has secured relief from insolvency proceedings after reaching a settlement with IDBI Trusteeship Services, which had initiated the process due to a default of ₹260 crore on non-convertible debentures. The National Company Law Tribunal (NCLT) approved the withdrawal of the insolvency petition on February 17th, following an appeal and subsequent settlement agreement on February 12, 2026. This resolution allows Mahagun to focus on completing its stalled residential project, Mahagun Manorialle, located in Sector 128, Noida, which consists of 400 units across six towers. The company has committed to delivering the project in a phased manner by March 2027 and has accelerated construction activities. A spokesperson stated the company “remains committed to delivering possession of apartments to our customers with the quality and standards that we have consistently upheld,” emphasizing the importance of this resolution for customer confidence and long-term value creation. The initial default date, according to IDBI Trusteeship’s petition, was September 30, 2023, stemming from financial assistance received from Asia Real Estate II India Opportunity Trust in December 2020.
(Source：The Economic Times)