In a significant development, the Maharashtra government is poised to approve a petition by Bollywood superstar Shah Rukh Khan and his wife Gauri Khan, seeking a refund of approximately ₹9 crore. The refund pertains to an excess payment made by the couple for the land on which their iconic residence, ‘Mannat,’ stands.
The Property at the Center of the Dispute
‘Mannat,’ the sprawling bungalow located at Band Stand in Bandra West, Mumbai, is jointly owned by Shah Rukh and Gauri Khan. The property is built on a parcel of land leased by the state government to the original owner. Upon the original owner’s decision to sell the land, the Khans purchased it and subsequently paid a conversion fee to the state to change the property’s status from a Class 2 leasehold to Class 1 freehold.
The residential property, which spans over 2,446 square meters, was officially transferred into the names of the Khans through a registered agreement. Prior to the transfer, the state, as the original title holder, levied an unearned income charge based on the difference between the market value and the ready reckoner price.
As per the state’s policy, the Khans paid 25% of the ready reckoner price in March 2019, which was calculated at around ₹27.50 crore for the land. This fee was part of the policy that allows the conversion of leased land (Class 2) into complete ownership (Class 1). However, a subsequent review led to the discovery of an error in the fee calculation.
Error in Fee Calculation and Petition for Refund
It was discovered by Shah Rukh Khan and Gauri Khan in September 2022 that the conversion fee had been calculated incorrectly. The authorities had mistakenly used the value of the bungalow itself, rather than the land, to calculate the conversion fee, resulting in an overpayment of approximately ₹9 crore.
Upon noticing the error, Gauri Khan made a formal representation to the collector of the Mumbai Suburban District (MSD), seeking a refund for the excess payment. The collector has since forwarded the request to the state government for final approval.
The Maharashtra state officials confirmed that once the refund is approved, the Khans will receive the excess amount paid, which is expected to be ₹9 crore. The refund process is now in its final stages, pending official government approval.
Impact on Shah Rukh Khan and Gauri Khan’s Property Ownership
This development has brought attention to the intricacies of property ownership and land conversion processes, particularly in Mumbai’s high-value real estate market. The refund will not only address the error in the payment but also serve as a significant precedent in matters of property dealings in Maharashtra.
Once the refund is processed, Shah Rukh Khan and Gauri Khan will have their excess payment of ₹9 crore returned, putting an end to the issue surrounding the conversion fee for their beloved residence, ‘Mannat.’ The case highlights the importance of accurate calculations in property dealings and the willingness of the state government to rectify errors that affect property owners.
This move is expected to be finalized soon, ensuring that the Khans can continue their ownership of ‘Mannat’ without any further financial discrepancies.
