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.