Saturday, 05 Oct, 2024
Representational Image (Source: Getty)
In India, about 8.5 lakh Waqf properties, spanning nearly 8 lakh acres, are overseen by state Waqf boards. While the full real estate value of these assets has not been assessed, it is estimated to be worth hundreds of lakhs of rupees.
Earlier this month, the Centre introduced the Waqf (Amendment) Bill 2024, which is now being examined by a Joint Parliamentary Committee (JPC). The proposed legislation aims to enhance oversight and transparency within state Waqf boards, which manage more than 8.7 lakh properties across India. It seeks to address issues of corruption and improve the regulation and monitoring of these assets.
On August 8, the National Democratic Alliance (NDA) government proposed amendments to the Waqf Act, 1995, as part of ongoing efforts to align the governance of Waqf properties with constitutional ideals while respecting the individuality of the Indian Muslim community. The proposed changes include, for the first time, provisions to include women and non-Muslim members on Waqf Boards. Additionally, the draft law, tentatively named The Unified Waqf Management, Empowerment, Efficiency, and Development Act, 2024, seeks to enhance the regulatory powers of the Centre for more efficient management of Waqf properties.
Under Islamic law, waqf refers to assets dedicated solely for religious or charitable uses, with ownership irrevocably transferred from the individual (waqif) to Allah. These assets are managed by a mutawwali, appointed by either the waqif or an authorised body. In India, the Waqf Board stands as the third-largest landholder, managing 8.7 lakh properties spanning around 9.4 lakh acres, valued approximately Rs 1.2 lakh crore. The country hosts 32 waqf boards, including two Shia waqf boards in Uttar Pradesh and Bihar, with oversight controlled by approximately 200 individuals.
Section 40 of the Waqf Act, 1995, empowers waqf boards to designate properties as waqf. However, there are concerns that this power has been misused by vested interests for property grabs, facilitated by a corrupt waqf bureaucracy. Additionally, there have been allegations of misuse in the appointment of mutawwalis and disputes over the selection of managers.
(Shows sum of net income declared from immovable properties of all states. Source WAMSI / BS calculation)
Several reports mentioned that waqf properties in India have faced challenges in generating sufficient profit for the community, with ongoing issues of corruption and mismanagement. These problems have varied across states, from Uttar Pradesh to West Bengal. In September 2022, Delhi Waqf Board Chairman and Aam Aadmi Party (AAP) MLA Amanatullah Khan was arrested on charges related to the misappropriation of waqf funds and other irregularities.
Despite an increase in the number of registered properties, Waqf boards across India have struggled to generate significant income. Many properties remain underdeveloped commercially and yield minimal rent, limiting resources available for community welfare, especially in the aftermath of the pandemic.
In 2014-15, Waqf properties reported a net income of more than Rs 80 crore, which increased to more than Rs 150 crore in FY19 and FY20, according to the Waqf Assets Management System of India (WAMSI). However, income has been on a steady decline in the years following, as reported by Business Standard. In FY24, net income barely surpassed Rs 1.2 crore, with all of it generated from just three states.
(Source WAMSI)
Approximately 8.5 lakh waqf properties, covering nearly 8 lakh acres, are managed by state Waqf Boards in India. Although the real estate value of these assets has never been fully assessed, it is estimated to be worth hundreds of lakhs of rupees. Currently, 30 state Waqf Boards operate across 28 states and Union territories.
Furthermore, the report mentioned that net annual income, as defined by the Waqf Act 1995, is the gross income minus expenditures such as taxes, licence fees, repairs, maintenance, and wages. The Act specifies that income from government grants, public donations, or fees from educational institutions, as well as earnings from "non-remunerative undertakings" like schools, colleges, hospitals, or orphanages, cannot be counted as income.
Faizan Mustafa, Vice-Chancellor of Chanakya National Law University, explained to the financial daily that the accounts of various Waqf boards are audited by auditors appointed by the State government. Given that most nominations to the Waqf boards and the Waqf council are made by the government, the 1995 Act allows the government to have the accounts audited by anyone it deems appropriate. However, if the Comptroller and Auditor General (CAG) audits these accounts under the new Bill, that is acceptable as well.
Over the past decade, the number of properties registered under the Waqf has tripled. Uttar Pradesh holds the largest share, with more than 2,32,500 registered Waqf properties, accounting for over a fourth of the total in India. Following Uttar Pradesh, the distribution of Waqf properties is significant in, West Bengal at 9.23%, Punjab at 8.7%, Tamil Nadu with 7.6%, Karnataka with 7.2% and, Kerala with 6.11% waqf properties.
