New Launch - India Real Estate Report 2026.
The Kerala Real Estate Regulatory Authority (K-RERA) directed a builder in the state capital to pay two homebuyers simple interest at 16.65% per annum for the delay in handing over a flat in the Sparrow Paradise project at Kudappanakunnu.
The buyers, Dr Ullas Raghavan and Shakuntala Prabhakaran, had paid around Rs 1.02 crore for the 1,765 sq ft flat, with interest calculated from December 1, 2018, the day after the promised completion date, on the Rs 54.41 lakh advance they had paid and subsequent payments made from the respective dates of payment until the flat is handed over.
What K-RERA Ordered
K-RERA directed Sparrow Construction Management & Consultancy and its partner Jahad A Majeed to pay the interest within 60 days of the order issued on July 20. It also ordered the builder to complete the flat and common amenities within six months, obtain the occupancy certificate and execute the sale deed before handing over the flat.
The authority issued the order 14 months after it received both parties and reserved its decision on May 29, 2025; the complaint was filed in 2023.
- Interest rate awarded: 16.65% per annum, simple interest
- Buyers: Dr Ullas Raghavan and Shakuntala Prabhakaran
- Flat size: 1,765 sq ft, paid ~Rs 1.02 crore
- Advance paid: Rs 54.41 lakh
- Original completion date: November 30, 2018
- Deadline given to builder: 60 days for interest, 6 months to complete flat/amenities
Why the Builder's Excuses Didn't Hold Up
The authority rejected the buyers' demand for 20% interest and fixed the rate at 16.65%, the applicable statutory formula. It held that the promoter could not cite demonetisation or the floods of 2018 and 2019, and pandemic and labour shortages, to justify the delay of over seven years.
Also Read: Kerala CM Eyes New Developer Models Beyond Standard PPP
A Project Still Unfinished
The project, scheduled to be completed by November 30, 2018, remains unfinished. The complainants, who are based in the UK, had also alleged that the builder was exerting pressure on them to make possession of the flat though the project had not received an occupancy certificate from Thiruvananthapuram Corporation.
The buyer had also sought more money while the buyers were awaiting K-RERA's order, and they alleged this in a letter dated October 25, 2025, five months after the hearing had concluded.
In a representation to K-RERA, the buyers alleged that the builder applied for an occupancy certificate only on July 31, 2025, after the hearing had concluded, and subsequently demanded power and water connection charges. They contended that this showed the project remained incomplete and was not ready for lawful possession.
Enjoyed this update? Visit PropTech Pulse for more real estate news, investment insights and property market trends.
