Union Minister Manohar Lal Khattar has voiced criticism regarding the National Company Law Tribunal (NCLT), stating that it has not effectively addressed the issues plaguing the real estate sector.

The NCLT is a quasi-judicial body in India that was formed to handle corporate disputes, including those related to insolvency and bankruptcy. It was expected to streamline the resolution process for distressed assets and provide a faster and more efficient mechanism for creditors to recover their dues. The real estate sector, which often faces challenges related to project delays, financial distress, and disputes between developers and homebuyers, was expected to benefit significantly from the NCLT's intervention.

However, according to Khattar, the NCLT has fallen short of expectations in resolving the problems specific to the realty sector. While the minister did not elaborate on the specific reasons for his assessment in the available source, it suggests that the NCLT's processes, timelines, or outcomes have not been satisfactory in addressing the unique challenges of the real estate industry.

Several factors may contribute to the NCLT's perceived ineffectiveness in the real estate sector. These could include:

• Complexity of Real Estate Disputes: Real estate disputes often involve multiple stakeholders, including developers, homebuyers, financial institutions, and government authorities. The intricate nature of these disputes can make it difficult for the NCLT to arrive at swift and equitable resolutions.
• Project Delays and Stalled Projects: Many real estate projects in India face significant delays, leaving homebuyers in limbo and increasing the financial distress of developers. The NCLT's ability to revive stalled projects and protect the interests of homebuyers may be limited by legal and practical challenges.
• Lack of Real Estate Expertise: It is possible that the NCLT benches may lack sufficient expertise in real estate matters, hindering their ability to understand the nuances of the industry and make informed decisions.
• Procedural Delays: Despite being conceived as a faster resolution mechanism, the NCLT processes can still be time-consuming, leading to delays in resolving cases and further exacerbating the problems of the real estate sector.

The minister's criticism of the NCLT highlights the need for a more effective and efficient dispute resolution mechanism for the real estate sector. This could involve reforms to the NCLT's processes, increasing its expertise in real estate matters, or exploring alternative dispute resolution mechanisms such as mediation and conciliation. It's important to note that RERA (Real Estate Regulatory Authority) aims to curb speculative pricing in the housing market.

It remains to be seen whether the government will take any specific steps to address the concerns raised by Khattar and improve the NCLT's effectiveness in the real estate sector. However, his statement underscores the importance of ensuring that the legal and regulatory framework is conducive to resolving disputes and promoting the healthy growth of the real estate industry.