King Khan, SRK is going to receive a refund of 9 crores from the Maharashtra government over an error in the calculation of the ownership conversion premium for his iconic sea-facing bungalow, Mannat. As reported by Hindustan Times, the Mumbai suburban collectorate has admitted to a miscalculation. The said error crept in during the conversion of the property from leasehold to freehold ownership.

Shah Rukh Khan got the grade III heritage bungalow on a 99-year lease from the Bai Khorshed Bhanu Sanjana Trust in 2001. The heritage laws do not allow any structural changes to the building. Therefore, the star built a multi-storey annexe behind the bungalow which serves as the family’s main residence.

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Subsequently, the property was transferred in the names of Shah Rukh and Gauri Khan. It was done through a registered agreement. Since the bungalow is located on collector’s land – the couple had to be paid a levy on unearned income. This is a percentage of the difference between the market price and the ready reckoner price. As noted by the news portal, the couple converted the ownership of leased property (class2) to complete ownership (class1) in 2019. For this, they had to once again pay a premium of 27.5 crores.

Satish Bagal, resident suburban deputy collector elaborated on the issue to Hindustan Times. He said, “The premium was to be paid on the value of the land. Instead, it was calculated on the basis of the entire construction costs plus the value of land.”

In September 2022, SRK and Gauri took notice of the issue. Subsequently, Gauri Khan filed an appeal to the collector for a refund which has now been sanctioned. Bagal stated, “We are awaiting the formal government order after which we will refund the excess ₹9 crore charged from Shah Rukh Khan.”

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While several restrictions accompany the heritage property, Mannat is one of the most sought-after properties. It is located in the bustling Bandra Bandstand and holds deep cultural significance. As per reports, SRK has applied to add two additional floors to the annexe. Moreover, reportedly, the estimated value of Mannat stands at approximately 200 crores.