Revitalizing Real Estate: Manohar Lal Advocates for Systemic Reforms
Union Housing and Urban Affairs Minister Manohar Lal calls for major reforms in the real estate sector, including the elimination of cash dealings and aligning circle rates with market rates, to boost the sector's GDP and protect consumer interests.
Real EstateGdpManohar LalNcltReformsReal Estate NewsAug 30, 2025
Minister Lal urged real estate developers to move away from cash transactions to accelerate the growth of the real estate sector, which currently contributes 8-10% to India's GDP. He highlighted the importance of transparent marketing practices, eliminating misleading advertisements, and aligning circle rates with actual market values to deter cash dealings.
Addressing the legislative and procedural hurdles, Lal announced that the government is working collaboratively with the Corporate Affairs ministry to propose systemic improvements to the Prime Minister. He also encouraged states to adopt best practices from each other to expedite project approvals. Shared at the convention, Lal praised India's impressive infrastructure advancements under the Modi administration, which have set a strong foundation for further growth in the real estate sector.
The minister's call for reform comes at a critical time when the real estate sector is facing multiple challenges, including delayed project completions, financial distress, and a lack of transparency. By implementing these changes, the government aims to create a more robust and trustworthy environment for both developers and consumers, ultimately boosting the sector's contribution to the national economy.
Realtors and industry experts have welcomed the minister's proposals, recognizing the potential benefits of aligning circle rates with market rates and eliminating cash transactions. These measures are expected to enhance the overall health of the real estate market, making it more attractive for investments and fostering sustainable growth.
In conclusion, the reforms proposed by Minister Manohar Lal are a step in the right direction to revitalize the real estate sector. By addressing the key issues of transparency, accountability, and regulatory efficiency, the government is paving the way for a more prosperous and resilient real estate industry in India.
Frequently Asked Questions
What are the main concerns raised by Manohar Lal regarding the real estate sector?
Manohar Lal raised concerns over the shortcomings of the National Company Law Tribunal (NCLT) in addressing stalled real estate projects, the prevalence of cash transactions, and the need for transparent marketing practices.
Why is it important to eliminate cash dealings in the real estate sector?
Eliminating cash dealings is crucial to increase transparency, reduce financial irregularities, and align circle rates with actual market values, which can deter cash transactions and promote a healthier real estate market.
What is the current contribution of the real estate sector to India's GDP?
The real estate sector currently contributes 8-10% to India's GDP, making it a significant part of the national economy.
What steps is the government taking to address legislative and procedural hurdles in the real estate sector?
The government is working collaboratively with the Corporate Affairs ministry to propose systemic improvements to the Prime Minister and encouraging states to adopt best practices from each other to expedite project approvals.
How are realtors and industry experts responding to the proposed reforms?
Realtors and industry experts have welcomed the proposed reforms, recognizing the potential benefits of aligning circle rates with market rates and eliminating cash transactions, which are expected to enhance the overall health of the real estate market.
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