NCLAT reverses insolvency order against Mahagun, citing project-specific IBC rules, and orders new hearing.

The NCLAT has overturned the NCLT’s August 2025 order launching insolvency proceedings against real estate developer Mahagun, directing a fresh hearing. The appellate tribunal ruled that insolvency under the IBC must be project-specific, citing a Supreme Court precedent. It allowed Mahagun one week to respond and granted homebuyers and Aditya Birla Capital Ltd the right to file new interventions. The decision does not address the case’s merits, leaving final judgment to the NCLT. The original petition stemmed from a ₹256.48 crore debenture default first reported in 2024.