Shah Rukh Khan to Get Rs 9 Crore Refund After Major Mistake in Mannat’s Ownership Transfer!

Shah Rukh Khan is set to receive a Rs 9 crore refund from the state due to a calculation error made by the Mumbai suburban collectorate when transferring the lease of his sea-facing home, Mannat, to full ownership. The error occurred during the process of converting the property’s ownership from a 99-year lease to freehold in 2019.
Khan had obtained the heritage bungalow in 2001 from the Bai Khorshed Bhanu Sanjana Trust on a lease. The bungalow, which is classified as Grade III heritage, restricts structural changes due to heritage laws. To accommodate his family, Khan built a multi-storey annexe behind the bungalow, which has since become their primary residence.
Since Mannat is situated on collector’s land, the state imposes a levy on unearned income—calculated as a percentage of the difference between the market value and the ready reckoner value of the land. In 2019, the Khans decided to upgrade the bungalow’s status from Class 2 (leased) to Class 1 (full ownership) by paying a premium of Rs 27.5 crore. However, the premium was incorrectly calculated, taking both the land value and construction costs into account, rather than just the land value.
This mistake went unnoticed until September 2022, when Gauri Khan discovered the error and filed an appeal for a refund. The appeal was successful, and the Mumbai suburban collectorate has now approved a refund of Rs 9 crore for the excess charge.
Officials confirmed that the refund is pending the official government order, after which the excess amount will be returned to the Khans.