I had the same problem and the issue was, in eclipse java.home was referring to JRE instead of JDK. I changed it and the build was successful. You can do the following to change it to JDK:
Preferences > Java > Installed JRE’s > Add… For ‘JRE Type’ select ‘Standard VM’ > Next > Directory: select your JDK directory (instead of JRE) (in my case: C:\Program Files\Java\jdk1.6.0_16 ), press OK.
Now, you are back at ‘Installed JRE’s’, select the JDK here also.
The below post helped in finding the solution.
JAVA_HOME points to the wrong place