NEW DELHI: Holding that the National Company Law Tribunal (NCLT) has not been able to deliver the desired results in the real estate sector, Union housing and urban affairs minister Manohar Lal Khattar on Saturday flagged a high probability of stressed projects that reach the tribunal never getting completed.
Speaking at realtors’ body NAREDCO’s annual convention, Khattar highlighted that many lenders had approached the tribunal against a default by builders in loan repayments. “Jitna system sudharna chahiye tha NCLT ke karan se woh nehin hua hai. Agar koi project bach bhi sakta tha NCLT mein agar chala gaya toh uska samapt hona nischit hai (NCLT has not been able to improve the system, as was envisaged. If a project, which could otherwise have been revived, goes to the NCLT, it is certain that it will never get completed)”, the minister said.
Khattar said he was criticising a govt 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 govt 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 govt also plans to develop aerotropolises or cities developed around airports without compromising on aviation safety.
Speaking at realtors’ body NAREDCO’s annual convention, Khattar highlighted that many lenders had approached the tribunal against a default by builders in loan repayments. “Jitna system sudharna chahiye tha NCLT ke karan se woh nehin hua hai. Agar koi project bach bhi sakta tha NCLT mein agar chala gaya toh uska samapt hona nischit hai (NCLT has not been able to improve the system, as was envisaged. If a project, which could otherwise have been revived, goes to the NCLT, it is certain that it will never get completed)”, the minister said.
Khattar said he was criticising a govt 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 govt 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 govt also plans to develop aerotropolises or cities developed around airports without compromising on aviation safety.
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