Mahagun India Private Limited, a prominent real estate developer, is once again in the news, but for reasons far from another new housing launch. The company is facing serious financial trouble, with insolvency proceedings initiated against it at the National Company Law Tribunal (NCLT). This legal action comes as a fresh blow to hundreds of homebuyers already grappling with significant delays and incomplete projects, including the long-stalled Mahagun Montagge project.
See the complete notice at IBBI Official Website
What’s the Case?
IDBI Trusteeship Services Limited has filed an application against Mahagun India under Section 7 of the Insolvency and Bankruptcy Code, 2016. This legal step is typically taken by a financial creditor when a corporate debtor defaults on a loan or payment. In this instance, IDBI Trusteeship is seeking recourse from the NCLT after Mahagun India allegedly failed to repay its dues.
As a result, a public notice was issued, and the NCLT has appointed Mr. Manoj Kumar Babulal Agarwal as the Interim Resolution Professional (IRP) to oversee the Corporate Insolvency Resolution Process (CIRP). The last date for creditors to submit their claims is August 19, 2025.
Why is Mahagun in Trouble?
While Mahagun India has long been a recognized name in the eastern part of NCR, particularly in Noida and Ghaziabad, the company has recently been under immense pressure due to a number of challenges:
- Defaults on payments to creditors.
- Protracted delays in the delivery of housing projects.
- Broader economic challenges impacting the real estate market.
Impact on Homebuyers & Investors
The most significant and heartbreaking impact of these proceedings is on the customers. Over 500 buyers of the Mahagun Montage project, (one of the running project of Mahagun India Private Limited) in Ghaziabad are in a state of immense distress. They were promised their dream homes years ago but are still waiting.
As we’ve covered previously, the buyers of this project have been vocal about their struggle, dealing with the dual burden of paying rent and EMIs, and a string of broken promises. You can read more about the specific issues faced by the residents in our previous report on the Mahagun Montagge Crossing Republik project.
This latest news has further shaken consumer confidence, stretching the finances of many to their breaking point. With insolvency proceedings now underway, there is growing fear that without decisive action, these families may never see their homes completed.
Buyers are collectively getting ready in the Montagge Unity WA Group. If you’re a Mahagun Montagge buyer, join now to stay informed and unite with fellow residents.
