Superstar Shah Rukh Khan, one of the most celebrated Bollywood actors, is set to receive a refund of approximately ₹9 crore from the Maharashtra state government. The refund pertains to a calculation error made by the Mumbai suburban collectorate during the process of converting the leasehold of his iconic sea-facing residence, Mannat, into full ownership. This article delves into the history of Mannat, the process of its ownership conversion, and the reasons behind the refund. Shahid Kapoor Opens Up About 21 Years In The Industry
The Legacy of Mannat: A Grade III Heritage Bungalow
Shah Rukh Khan acquired Mannat, a grade III heritage bungalow located at Bandstand in Bandra West, Mumbai, in 2001. Originally leased on a 99-year agreement from the Bai Khorshed Bhanu Sanjana Trust, Mannat has become a landmark not only for its grandeur but also for its association with the Khan family. Shah Rukh Khan’s former security head reveals the real reason why he avoids media
Heritage laws governing the bungalow restricted any structural modifications or changes to the original building. To meet the family’s growing needs, Shah Rukh Khan built a multi-story annexe behind the bungalow, which serves as the primary residential space for his family.
Why Shah Rukh Khan Filed a Petition
The refund request filed by Shah Rukh Khan with the Maharashtra government stems from an overpayment to the Collector of the Mumbai Suburban District (MSD). The overpayment was made during the conversion process of Mannat from leasehold to freehold property.
The actor claims that the refund represents the excess payment made for the land on which Mannat is situated. The vast property, spanning 2,446 square meters, is jointly registered in the names of Shah Rukh Khan and his wife, Gauri Khan.
The Journey of Ownership: From Leasehold to Freehold
When Shah Rukh Khan and Gauri Khan purchased Mannat, the property was originally on a lease from the state government. The previous owner sold the property to the Khans after obtaining government approval.
Before the title was transferred to the Khans, the state government, as the original titleholder, imposed a share of “unearned income” on the transaction. This amount was calculated based on the property’s market value and the ready reckoner price—a government-declared property valuation metric. Shah Rukh Khan’s former security head reveals the real reason why he avoids media
Leveraging the State Policy for Conversion
In March 2019, the Khans opted to convert the leasehold property (Class 2) into a freehold property (Class 1) under a policy introduced by the Maharashtra government. To comply with the policy, the couple paid 25% of the ready reckoner price, which amounted to approximately ₹27.50 crore. This payment ensured that the property was fully owned by the Khans and no longer under lease terms.
The Calculation Error That Led to the Refund
According to sources, an error occurred during the calculation of the conversion fee. The state government’s calculation mistakenly included the value of the bungalow itself instead of considering only the land value.
This “unintentional error” resulted in an inflated fee being charged to the Khans. After identifying the discrepancy, the couple applied for a refund of the excess amount.
What the Refund Entails
The Maharashtra government is expected to approve Shah Rukh Khan’s petition and issue a refund of ₹9 crore. This amount represents the overpayment made during the property conversion process.
It is important to note that such errors are rare but significant, given the high value of properties like Mannat and the intricate calculations involved in determining conversion fees.
Mannat: More Than Just a Home
Mannat has become a symbol of Shah Rukh Khan’s success and hard work. The luxurious bungalow, overlooking the Arabian Sea, is not just a residence but also a tourist attraction, with fans gathering outside daily to catch a glimpse of the actor.
The home’s unique architecture and the family’s tasteful renovations over the years have added to its allure, making it one of Mumbai’s most iconic landmarks.
Conclusion
The ₹9 crore refund for Mannat highlights the complexities involved in property ownership in India, particularly for heritage properties with high market values. Shah Rukh Khan’s journey from acquiring Mannat to converting it into a freehold property showcases the legal and financial intricacies that even high-profile individuals must navigate.
As the Maharashtra government prepares to approve the refund, Mannat remains not just a prized possession for the Khan family but also a testament to their legacy.