Waqf must hold up promise of development

The government must commit to inclusive dialogue, avoid the trap of political appeasement, and ensure that the waqf system uplifts the marginalised rather than serving entrenched interests.
Parliament passes Waqf (Amendment) Bill-2025 after lengthy deliberations in Rajya Sabha
Parliament passes Waqf (Amendment) Bill-2025 after lengthy deliberations in Rajya Sabha
Updated on
4 min read

The Waqf (Amendment) Bill 2024 is being hailed by some as a long-overdue reform aimed at streamlining the administration of waqf properties across India. Though it faces criticism and political resistance, the bill passed by parliament can still be viewed as a bold step toward much-needed reforms. At its core, it seeks to enhance transparency, improve accountability and ensure more equitable and efficient use of waqf assets—many of which have been mired in bureaucratic neglect, political interference and corruption for decades. But does the bill go far enough?

In Islamic tradition, waqf refers to the donation of movable or immovable assets for charitable purposes. Once declared, a waqf is irrevocable—it cannot be sold, rented or reclaimed by the donor. According to the latest government data, 32 state waqf boards manage 8.8 lakh registered properties across 9.7 lakh acres. Of these, 8.7 lakh are immovable, 16,713 movable and 994 marked ‘alienated’. Uttar Pradesh has the highest number of immovable properties (2.3 lakh), followed by West Bengal, Punjab, Tamil Nadu and Karnataka.

In 2006, the Sachar Committee had noted underestimation and poor use of waqf assets, and had estimated 4.9 lakh registered properties nationwide. It calculated their book value at Rs 6,000 crore, with the potential to yield 10 percent annual returns on a market value that surely would have been many times higher.

However, the actual income was only Rs 163 crore (2.7 percent return), indicating significant inefficiency. The committee noted that the number of waqf properties was also likely underestimated. It cited poor governance, lack of records, encroachments and weak oversight. It recommended reforms in organisational structure, financial management, representation, rent laws and the establishment of waqf development corporations.

Parliament passes Waqf (Amendment) Bill-2025 after lengthy deliberations in Rajya Sabha
‘It didn’t take long for RSS to turn to Christians after Waqf Bill’: Rahul Gandhi

Although the waqf board is one of the largest property holders in India, not all its assets are revenue-generating. According to the Waqf Management System of India (WAMSI), the majority of registered properties are graveyards (1,50,569), followed by agricultural land (1,40,803), mosques (1,19,280), shops (1,13,193) and various plots and houses. Notably, only 2,094 schools and 14,014 madrasas are registered. The properties are managed by over 7 lakh registered and unregistered waqf functionaries across the country.

While the waqf board is entrusted with managing properties to generate revenue for the upkeep of religious institutions and socio-economic uplift of Muslim communities—the very purpose for which it was created—it has largely failed to fulfil this mandate. Data from WAMSI reveals that, in many cases, revenue exceeds expenditure amid severe gaps in record-keeping. This raises several serious concerns. Are the properties being appropriately leased and managed? Are transparency and accountability mechanisms in place? And where is the revenue going?

Given the scale of its holdings, the waqf board has immense potential to establish and operate hospitals, schools and colleges to serve the poor—aligning with the charitable intent behind these endowments. Yet, the board has consistently fallen short. As the Sachar Committee observed, widespread corruption, concentration of power, and lack of transparency and inclusivity continue to undermine waqf administration across states.

The regulation of wakf properties dates back to the British colonial era, with the Mussalman Waqf Act of 1923 representing the first legislative attempt to govern them. In independent India, the Wakf Act was initially passed in 1954 and later replaced by one in 1995 that granted greater powers to state wakf boards. However, this increase in authority also led to a rise in complaints related to encroachments, illegal leases and unauthorised sale of properties.

In 2013, the law was further amended to give wakf boards sweeping powers to claim properties under the guise of Muslim charity. These changes also made it virtually impossible to sell wakf properties, as neither the mutawalli (custodian) nor the wakf board was permitted to transfer ownership.

Parliament passes Waqf (Amendment) Bill-2025 after lengthy deliberations in Rajya Sabha
'Watershed moment' for socio-economic justice: PM Modi on passage of Waqf Bill by Parliament

The 2024 bill seeks to address some of these longstanding issues. It marks a significant step toward enhancing transparency, accountability and the inclusion of non-Muslims in wakf boards. Its measures include digitisation of records, regular surveys and stricter checks on encroachment. These steps, if implemented sincerely, can strengthen institutional mechanisms and restore public trust.

However, it is equally important to question what the bill lacks. The structural problems—such as opaque decision-making, lack of grassroots representation, especially of women, and weak enforcement capacity—have not been adequately addressed.

There is also a growing concern that the bill attempts to centralise control, potentially limiting community participation. One cannot ignore that the majority of waqf properties are still being recorded as graveyards, mosques or agricultural plots, with only a marginal share invested in institutions like schools and hospitals. This is not just a management issue, but a developmental failure. The bill should have explicitly laid down mechanisms to facilitate the productive use of the assets in line with their original charitable and community-driven intent.

Ultimately, whether the new law becomes a true turning point depends not merely on its written provisions, but on its implementation. The government must commit to inclusive dialogue, avoid the trap of political appeasement, and ensure that the waqf system uplifts the marginalised rather than serving entrenched interests.

The bill marks a bold and welcome step toward enhancing accountability, transparency and inclusivity. Yet, in its current form, it remains a cautious move forward. It opens a critical door, but whether that door leads to genuine reform or merely another cycle of inefficiency masked by legislative promise is a question only time, and political will, can answer.

(Views are personal)

BALHASAN ALI

Economist and demographer at Institute of Economic Growth, whose forthcoming co-authored book is about

Muslim society in Indian states

Related Stories

No stories found.

X
Open in App
The New Indian Express
www.newindianexpress.com