Maharashtra Government to Refund ₹9 Crore to Shah Rukh Khan Over 'Mannat' Land Deal
The Maharashtra government is set to approve a petition by actor Shah Rukh Khan for a refund of ₹9 crore, which he claims was overpaid to the collector of the Mumbai Suburban District (MSD) for the land on which his home, 'Mannat,' is located. The property in Bandra West is owned by Khan and his wife, Gauri Khan.
Mannat, one of Mumbai's most iconic properties, holds a special place in the real estate landscape due to its location, history, and the prominent personality associated with it. The bungalow was originally acquired by Shah Rukh Khan in 2001 on a 99-year lease from the Bai Khorshed Bhanu Sanjana Trust. In 2019, the Khans decided to convert the property from leasehold (Class 2) to freehold ownership (Class 1). As part of the process, a premium of ₹27.5 crore was paid. However, the error in the premium calculation meant that Shah Rukh Khan was overcharged by ₹9 crore.
The suburban deputy collector, Satish Bagal, clarified that the ownership conversion premium should have been calculated solely on the land's value. Instead, it was incorrectly based on both the land and the construction costs. Following the discovery of the miscalculation, Gauri Khan, Shah Rukh Khan’s wife, filed an appeal for a refund, which has now been approved. The refund process is awaiting formal government orders, after which the excess ₹9 crore will be refunded to the actor.
The mistake was discovered in September 2022 when Gauri Khan made a formal representation to the collector, requesting a refund for the excess amount. The collector has since forwarded the petition to the state government for final approval. Once the refund is approved, the ₹9 crore excess payment will be returned to the Khans.
The suburban deputy collector, Satish Bagal, clarified that the ownership conversion premium should have been calculated solely on the land's value. Instead, it was incorrectly based on both the land and the construction costs. Following the discovery of the miscalculation, Gauri Khan, Shah Rukh Khan’s wife, filed an appeal for a refund, which has now been approved. The refund process is awaiting formal government orders, after which the excess ₹9 crore will be refunded to the actor.
The estimated value of Mannat is approximately ₹200 crore (₹2 billion), a reflection of the premium location and the significance of the property. Bandra West, where Mannat is located, is one of the most expensive residential areas in Mumbai, with property prices ranging between ₹33,000 and ₹34,000 per square foot. The area is known for its proximity to the sea, affluent residents, and vibrant lifestyle offerings.
This petition highlights the potential issues in property transactions, particularly when converting leased land into full ownership. The unintentional error in calculating the conversion fee underscores the importance of accuracy in government property dealings. It also demonstrates the need for transparency in such processes to prevent similar issues from occurring in the future.
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