Thiruvananthapuram: In a landmark ruling favoring homebuyers, the Kerala Real Estate Regulatory Authority (K-RERA) has directed a capital-city-based builder to pay two buyers simple interest at 16.65% per annum for failing to deliver their apartment on time.
The order was passed against Sparrow Construction Management & Consultancy and its partner, Jahad A Majeed, following a complaint filed in 2023 by UK-based buyers Dr. Ullas Raghavan and Shakuntala Prabhakaran.
Key Details of the Ruling
Property Value: The complainants had invested approximately ₹1.02 crore for a 1,765 sq. ft. flat in the Sparrow Paradise project located at Kudappanakunnu, Thiruvananthapuram.
Interest Calculation: The interest will be calculated starting December 1, 2018 (the day after the promised completion date of November 30, 2018). It applies to the initial advance payment of ₹54.41 lakh and all subsequent installment payments until the physical possession of the flat is completed.
Payment & Project Completion Timeline: K-RERA has ordered the builder to pay the full accrued interest within 60 days of the order issued on July 20. The builder has also been instructed to complete the flat and common amenities, obtain the Occupancy Certificate (OC) from the Thiruvananthapuram Corporation, and execute the sale deed within six months.
Excuses Rejected by Authority
The builder attempted to justify the delay of over seven years by citing:
Demonetisation
The Kerala floods of 2018 and 2019
COVID-19 pandemic disruptions
Acute labor shortages
However, K-RERA firmly rejected these arguments, holding that such factors cannot be used as an umbrella excuse for an unpardonable delay of more than seven years.
Unlawful Pressure on Buyers:
The complainants alleged that while awaiting the judgment, the builder exerted pressure on them to accept possession without obtaining an Occupancy Certificate from the municipal corporation, and subsequently demanded extra charges for water and power connections. K-RERA noted that the builder applied for the Occupancy Certificate only on July 31, 2025—long after the hearing had concluded—confirming that the project remained incomplete and unfit for lawful possession.
