The NCLAT has allowed the withdrawal of insolvency proceedings against real estate developer Mahagun Group after the parties reached a mutual settlement, signalling the growing role of negotiated resolutions under the IBC framework in India's real estate sector.

The NCLAT has set aside the NCLT's insolvency order against Mahagun India Pvt Ltd, citing procedural lapses and directing a fresh project-specific hearing. The decision brings relief to thousands of homebuyers in non-defaulting projects.