A Comprehensive Analysis of the Waqf (Amendment) Bill, 2025: Transforming Islamic Endowment Management in India

 

A Comprehensive Analysis of the Waqf (Amendment) Bill, 2025: Transforming Islamic Endowment Management in India

Author: AbhishekJat, Advocate

On April 3, 2025, the Lok Sabha passed the Waqf (Amendment) Bill, 2025, signaling one of the most significant overhauls of Islamic endowment management in India since the original Waqf Act of 1995. This legislation introduces far-reaching changes that touch nearly every aspect of waqf administration—from registration and governance to financial oversight and dispute resolution. Let's examine these changes in detail and consider their implications.

Fundamental Rebranding and Conceptual Shift

The amendment begins with a symbolic but meaningful change, renaming the law from the "Waqf Act" to the "Unified Waqf Management, Empowerment, Efficiency and Development Act." This shift reflects a conceptual reorientation toward modernization, unification of diverse practices, and a focus on developmental outcomes rather than mere administration.

Property Classification and Protection Mechanisms

Prevention of Inappropriate Classification

The bill establishes critical safeguards against the inappropriate designation of properties as waqf:

• Government Property Protection: Section 3C explicitly states that government properties identified or declared as waqf "shall not be deemed to be a waqf property," addressing concerns about encroachment on public assets.
• Protected Monuments Exclusion: Section 3D voids any waqf declarations made for properties that were already protected under the Ancient Monuments Preservation Act (1904) or the Archaeological Sites and Remains Act (1958).
• Tribal Land Protection: Section 3E creates an absolute bar against declaring any land belonging to Scheduled Tribes as waqf property, safeguarding tribal rights under the Fifth and Sixth Schedules of the Constitution.

Creation Standards and Evidence Requirements

The amendment introduces stricter standards for creating new waqfs:

• Formal Documentation Requirement: Section 36(1A) mandates that "no waqf shall be created without execution of a waqf deed," eliminating verbal declarations that previously created ambiguity.
• Religious Practice Validation: The amendment modifies Section 3(r) to require that waqf creators must demonstrate "that he is practising Islam for at least five years" and have clear ownership of the property being dedicated.
• Waqf by User Limitations: A proviso to Section 3(r) grandfathers existing "waqf by user" properties but excludes those that are disputed or are government properties.

Modernization Through Digital Transformation

Mandatory Digital Registration

The bill establishes a comprehensive digital framework:

• Central Database Requirement: Section 3B mandates that all existing waqfs must file their details on the centralized "portal and database" within six months.
• Detailed Information Requirements: The registration must include comprehensive information about property boundaries, usage, income, expense estimates, and legal status.
• Digital Certificate Issuance: Section 36(9) provides for the issuance of registration certificates through the digital portal.

Enhanced Transparency Mechanisms

The bill introduces several provisions for greater public transparency:

• Publication of Survey Results: Section 5(2A) requires state governments to upload notified lists of auqaf on the portal within ninety days.
• Public Notices for Mutations: Section 37(3) mandates a ninety-day public notice in two daily newspapers (including one in the regional language) before deciding on land record mutations.
• Public Audit Reports: Section 47(2A) requires Boards to publish audit reports in a manner prescribed by the Central Government.

Governance Restructuring

Central Waqf Council Reformation

The bill significantly restructures the Central Waqf Council:

• Expanded Representation: Section 9(2) redefines Council membership to include a more diverse array of stakeholders, including Members of Parliament, representatives of Muslim organizations, Board chairpersons, mutawallis, scholars, judges, and professionals.
• Inclusion Requirements: The bill mandates that at least two members appointed under certain provisions must be women, and two must be non-Muslim.

State Waqf Board Redesign

The amendment caps State Waqf Board membership at eleven nominees with specific representation requirements:

• Reserved Positions: Section 14 mandates representation for mutawallis, Islamic scholars, elected members from Municipalities or Panchayats, and professionals with business, finance, or development experience.
• Diversity Quotas: The bill requires that two board members must be women, two must be non-Muslim, and there must be representation from Shia, Sunni, and other backward classes among Muslim communities.
• Specialized Boards: Section 13(2A) allows state governments to establish separate Boards specifically for Bohras and Aghakhanis if deemed necessary.

Financial Management and Oversight

Strengthened Audit Requirements

The amendment enhances financial accountability:

• Higher Income Thresholds: The income threshold for mandatory external audits is raised from fifty thousand to one lakh rupees.
• Government-Approved Auditors: Section 47 requires audits to be conducted by auditors from a panel prepared by the State Government, which also specifies their remuneration.
• Central Government Audit Power: The amendment allows the Central Government to direct audits by the Comptroller and Auditor-General of India or designated officers at any time.
• Contribution Limitation: The amendment caps the Board's contribution from waqf income at five percent, subject to a maximum amount prescribed by the Central Government.

Mutawalli (Administrator) Qualifications and Accountability

Specific Disqualification Criteria

The newly inserted Section 50A establishes clear disqualification criteria for mutawallis:

• Age Requirement: Requires mutawallis to be at least twenty-one years old.
• Character and Competence Standards: Disqualifies individuals of unsound mind, undischarged insolvents, and those convicted of offenses with sentences of two or more years.
• Prior Misconduct: Bars individuals previously removed as mutawallis or from positions of trust due to mismanagement or corruption.

Enhanced Penalties for Non-Compliance

The amendment strengthens enforcement through:

• Imprisonment Provision: Section 61(1A) introduces imprisonment for up to six months for mutawallis who fail to deliver property possession, carry out directions, provide accounts, or upload required details.
• Increased Fines: Financial penalties are increased, with minimum fines of twenty thousand rupees for various offenses.

Judicial Process and Appeal Reforms

Tribunal Composition and Authority

The amendment modifies Waqf Tribunals:

• Three-Member Structure: Section 83(4) restructures Tribunals to consist of a Chairman (with District Judge qualification), a government officer of Joint Secretary rank, and a member knowledgeable in Muslim law.
• Term Limits: Members serve five-year terms or until age sixty-five, whichever comes first.

Appeals Process Overhaul

The amendment creates a more robust appeals system:

• Removal of Finality Clauses: The bill removes provisions declaring Tribunal decisions as "final," opening the door for further appeals.
• High Court Appeals: Section 83(9) explicitly allows appeals to High Courts within ninety days of Tribunal decisions.
• Alternative Pathways: If no Tribunal exists or is not functioning, aggrieved persons may appeal directly to the High Court.

Implications and Future Directions

Modernization and Standardization

The digital requirements, formalized documentation, and structured governance frameworks represent a significant modernization effort. This could lead to better data management, reduced property disputes, and more efficient administration if implemented effectively.

Balance of Religious Autonomy and State Oversight

The increased role of government officials (like Collectors replacing Survey Commissioners) and the insertion of non-Muslims into governance bodies raises questions about the balance between religious autonomy and state oversight. This tension will likely shape implementation discussions.

Inclusion and Representation

The mandated inclusion of women, non-Muslims, and various Muslim sects in governance bodies represents an attempt to make waqf administration more representative and inclusive. This could potentially lead to more balanced decision-making but might also face resistance from traditional quarters.

Property Rights and Dispute Resolution

The clearer appeal processes, limitations on property classification, and stricter documentation requirements should theoretically reduce property disputes. However, the transition period might see increased litigation as stakeholders adapt to new standards.

Conclusion

The Waqf (Amendment) Bill, 2025 represents the most comprehensive reform of Islamic endowment management in India in decades. Its success will depend on thoughtful implementation, stakeholder engagement, and the development of clear guidelines and capacity-building measures.

As the bill progresses through the remaining legislative stages, religious leaders, legal experts, and government officials will need to collaborate to ensure that these reforms achieve their stated goals of improved management, transparency, and effectiveness while respecting the religious and charitable purposes these endowments were established to serve.

The coming months will be crucial in determining whether this legislative overhaul truly transforms waqf administration for the better or simply adds new layers of complexity to an already challenging domain.

Disclaimer: This analysis is presented for informational purposes only and does not constitute legal advice. Specific legal questions should be addressed to qualified legal counsel.