NCLT Failing to Meet Expectations in Real Estate Sector, Says Khattar
Union Housing and Urban Affairs Minister Manohar Lal Khattar criticizes the National Company Law Tribunal (NCLT) for its inefficiency in resolving real estate issues, highlighting the high probability of stressed projects never getting completed.
NcltReal EstateManohar Lal KhattarReraNaredcoReal Estate NewsAug 31, 2025
Khattar said he was criticizing a government mechanism with the consent of the prime minister. “This issue has reached the PM. We will soon make a presentation to him which has been prepared in consultation with the corporate affairs ministry...We need to correct the system and if we do it together it will be better,” he added. In his address, Khattar also appealed to builders to avoid cash-dealings in property transactions for proper growth of the real estate sector and transparency.
He also advised the industry to avoid issuing misleading advertisements for their projects. On the effectiveness of RERA, the real estate regulation law, Khattar said that disputes between buyers and builders have been reduced since its enactment. “There have been some instances where people have taken out money from the Escrow Account without carrying out construction, not spending it on construction. We have information of the nexus in this as well,” he pointed out.
Earlier in the day, Civil Aviation Minister K Rammohan Naidu said the government will carry out a study with the assistance of global aviation body ICAO to look into solutions to address issues related to height restrictions for buildings around airports. The government also plans to develop aerotropolises or cities developed around airports without compromising on aviation safety.
Frequently Asked Questions
What is NCLT?
NCLT stands for National Company Law Tribunal. It is a quasi-judicial body in India that deals with various company-related issues, including insolvency and bankruptcy.
Why is NCLT criticized in the real estate sector?
NCLT is criticized for its inefficiency in resolving real estate issues, often leading to a high probability of stressed projects never getting completed.
What is RERA?
RERA stands for Real Estate (Regulation and Development) Act, 2016. It is a law aimed at protecting homebuyers and promoting transparency in the real estate sector.
What did Manohar Lal Khattar suggest to improve the real estate sector?
Khattar suggested avoiding cash transactions, issuing accurate advertisements, and working together to correct the system, including making a presentation to the Prime Minister.
What is the government's plan regarding height restrictions around airports?
The government plans to conduct a study with ICAO to address height restrictions for buildings around airports and develop aerotropolises without compromising aviation safety.
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