Shahrukh Khan to get ₹9 crore refund from state for Mannat

MUMBAI: Actor Shahrukh Khan is slated to get a refund of ₹ 9 crore from the state following an error in calculation by the Mumbai suburban collectorate while converting the lease on his sea-facing home Mannat to full ownership.

Khan acquired the grade III heritage bungalow on a 99-year lease from the Bai Khorshed Bhanu Sanjana Trust in 2001. Since heritage laws do not permit any structural changes to the building, Khan built a multi-storey annexe behind the bungalow that serves as the family’s primary residence.

The property was transferred in the names of Shah Rukh and Gauri Khan through registered agreement and the state - the bungalow being located on collector’s land - had to be paid a levy on unearned income which is a percentage of the difference between the market price and the ready reckoner price.

Subsequently in 2019, the Khans converted the ownership of leased property (class2) to complete ownership (class1) and for which they had to once again pay a premium of ₹ 27.5 crore. According to Satish Bagal, resident suburban deputy collector, “The premium was to be paid on the value of the land. Instead, it was calculated on the basis of the entire construction costs plus the value of land.” The Khans discovered the tabulation error only in September 2022, and Gauri Khan filed an appeal to the collector for a refund which has just been sanctioned.

“We are awaiting the formal government order after which we will refund the excess ₹9 crore charged from Shah Rukh Khan,” said Bagal.