MUMBAI: Bollywood superstar Shah Rukh Khan is set to receive a refund of ₹9 crore from the state due to an error made by the Mumbai suburban collectorate. The miscalculation occurred during the conversion of the leasehold rights of his sea-facing residence, Mannat, into full ownership.
In 2001, Shah Rukh Khan acquired the iconic grade III heritage bungalow on a 99-year lease from the Bai Khorshed Bhanu Sanjana Trust. As Indian heritage laws prohibit structural alterations to the bungalow itself, Khan constructed a multi-storey annex at the rear of the property, which now serves as the family’s primary residence.
The property was transferred to Shah Rukh and Gauri Khan through a registered agreement. Since the bungalow is situated on collector’s land, a levy on unearned income—calculated as a percentage of the difference between the market price and the ready reckoner price—had to be paid to the state.
In 2019, the Khans converted the leased property (Class 2 ownership) into freehold ownership (Class 1 ownership). For this conversion, khan paid a premium of ₹27.5 crore. However, as per Satish Bagal, the suburban deputy collector, “The premium should have been based on the value of the land alone. Instead, it was incorrectly calculated by including both the construction costs and the land value.”
The error came to light in September 2022 when the Khans identified the issue, prompting Gauri Khan to file an appeal for a refund with the collector’s office. The appeal has now been approved, and the refund of ₹9 crore has been sanctioned.
On this issue Satish Bagal said, “We are awaiting the formal government order to process the refund of the excess ₹9 crore charged to Shah Rukh Khan.”
