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SUMMARY
Shah Rukh Khan will receive a ₹9 crore refund from the Maharashtra government as a result of a mathematical error made by the Mumbai suburban collectorate when calculating the ownership conversion premium of Mannat.

Bollywood actor Shah Rukh Khan will receive a ₹9 crore refund from the Maharashtra government as a result of a mathematical error made by the Mumbai suburban collectorate when calculating the ownership conversion premium of his sea-facing bungalow, Mannat. (Image CNBCTV18.com file)

The Bai Khorshed Bhanu Sanjana Trust granted the actor a 99-year lease on the grade III heritage home in 2001. Khan built a multi-story annexe behind the bungalow that serves as the family’s primary residence because structural changes to the building are prohibited by heritage laws. (Image Reuters)

The property was transferred in the names of Shah Rukh and Gauri Khan through a legal agreement. Due to the bungalow’s location on collector’s land, the state had to pay a levy on unearned income, which is a per cent of the difference between the market price and the ready reckoner price. (Image IANS)

The Khans then changed the ownership of the leased property (Class 2) to full ownership (Class 1) in 2019, which required them to pay a premium of ₹27.5 crore. (Image Reuters)

However, according to the suburban deputy collector Satish Bagal, the premium was calculated based on both the construction costs and the land value, instead of the value of the land. ( Image X)

In September 2022, the calculation error was discovered by the Khans; following this, Gauri Khan filed an appeal to the collector for a refund, which has now been approved. “We are awaiting the formal government order after which we will refund the excess ₹9 crore charged from Shah Rukh Khan,” Bagal told Hindustan Times. (Image Instagram)

On the professional front, Shah Rukh Khan will next appear in the film ‘King’. Directed by Sujoy Ghosh, this upcoming film will also feature his daughter Suhana Khan in the lead role. (Image X)
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