THIRUVANANTHAPURAM: The Kerala Real Estate Regulatory Authority (K-RERA) has mandated a builder in the state capital to compensate two homebuyers with simple interest at a rate of 16.65% per annum for delays in delivering their flat in the Sparrow Paradise project located at Kudappanakunnu. Dr. Ullas Raghavan and Shakuntala Prabhakaran invested approximately ₹1.02 crore for their 1,765 sq ft flat. This interest will be calculated from December 1, 2018— the day after the agreed completion date—based on the ₹54.41 lakh advance they paid, along with subsequent payments from their respective payment dates until the flat’s delivery.
K-RERA has directed Sparrow Construction Management & Consultancy, along with its partner Jahad A Majeed, to settle the interest within 60 days of the order issued on July 20. They are also required to complete the flat and associated common amenities within six months, secure an occupancy certificate, and finalize the sale deed before delivering the flat. This order comes 14 months after the authority heard both parties and reserved its decision on May 29, 2025, following a complaint lodged in 2023.
The authority denied the buyers’ request for a 20% interest rate, instead applying a statutory formula to fix it at 16.65%. It ruled that the developer could not use reasons such as demonetization, the floods of 2018 and 2019, the pandemic, and labor shortages to justify a delay extending over seven years.
Although the project was slated for completion by November 30, 2018, it remains unfinished. The complainants, residing in the UK, have also claimed that the builder pressured them to take possession of the flat despite the fact that no occupancy certificate had been issued by the Thiruvananthapuram Corporation. Additionally, while waiting for K-RERA’s decision, the builder requested further payments from the buyers, who reported this in a letter dated October 25, 2025—five months post-hearing.
In their representation, the buyers contended that the builder only applied for an occupancy certificate on July 31, 2025, after the hearing had concluded, and subsequently demanded charges for power and water connections. They argued that this indicated the project was still not finished and not ready for lawful possession.
