The Waqf (Amendment) Act 2025: Reforming Religious Endowments For Transparency And Public Good

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The Waqf (Amendment) Act 2025 marks a significant development in the management and governance of waqf properties in India. Aimed at modernizing the administration of religious endowments and bringing transparency and accountability to the system, the amendment addresses long-standing issues in the waqf sector. It is part of the government’s broader initiative to ensure equitable use of religious assets while protecting community rights.

What is Waqf?

Waqf (Amendment) Act 2025 refers to a permanent dedication of property—movable or immovable—by a Muslim for religious, pious, or charitable purposes recognized by Islamic law. These properties are managed by State Waqf Boards under the guidance of the Central Waqf Council.

The Waqf Act of 1995 governs the functioning of these boards and properties. However, over the years, there have been numerous complaints regarding mismanagement, encroachments, lack of transparency, and inefficient use of waqf assets. The Waqf (Amendment) Act, 2025 seeks to rectify many of these issues.

Key Highlights of the Waqf (Amendment) Act 2025

  1. Digital Registration of Properties
    All waqf properties must now be digitally registered and geo-tagged. This step aims to prevent illegal encroachments, duplication of records, and fraudulent claims.
  2. Mandatory Public Disclosure
    The amendment mandates State Waqf Boards to maintain and publicly disclose all records and transactions online. This includes donation usage, leasing of property, and any disputes or litigations.
  3. Independent Waqf Tribunal
    A provision for independent Waqf Tribunals in each state has been introduced to ensure swift and impartial handling of disputes related to waqf properties.
  4. Revised Leasing Guidelines
    The Act modifies leasing terms, setting a clear upper limit on lease duration and introducing competitive bidding for leasing waqf assets to eliminate corruption.
  5. Audit Mechanism Strengthened
    A more robust audit mechanism is introduced. State Waqf Boards must now undergo compulsory annual audits by a third-party government-approved auditor.
  6. Waqf Development Fund
    A Waqf Development Fund has been created to channel a portion of waqf earnings into educational, health, and community development programs.
  7. Penalties for Mismanagement
    Strict penalties are outlined for misappropriation or negligence in the management of waqf properties, with provisions for both civil and criminal liabilities.

Objectives Behind the Amendment

  • Transparency: Eliminate the shadowy administration of waqf assets through open data and public audits.
  • Accountability: Strengthen institutional checks and legal recourse against mismanagement.
  • Protection: Safeguard waqf properties from encroachments, political misuse, and underutilization.
  • Empowerment: Ensure that the income from waqf assets benefits the community through development initiatives.

Reactions and Criticism

Positive Reception:
Many reformists and legal experts have welcomed the amendment for addressing core structural problems. Community leaders also see it as a necessary step for preserving religious trusts from decay and external interference.

Concerns Raised:
However, some minority rights groups have raised concerns regarding possible over-centralization and the potential misuse of digital records. Others have expressed apprehension that local community involvement may decrease due to bureaucratic dominance.

Implications for the Future

  1. Judicial Efficiency
    With the establishment of specialized tribunals, waqf-related cases may finally get timely resolution, which has been a persistent problem under general courts.
  2. Increased Public Confidence
    Transparency measures and audits may help restore faith among donors and beneficiaries who previously doubted the use of waqf funds.
  3. Digital Governance Model
    The Act sets a precedent for digital governance of religious properties, possibly influencing reforms in other religious endowment boards.
  4. Community Welfare
    With focused fund utilization on health and education, the socio-economic upliftment of the beneficiary communities could accelerate.

Conclusion

The Waqf (Amendment) Act 2025 is a forward-looking piece of legislation that aims to correct the longstanding irregularities in waqf management while aligning it with modern governance standards. Although it may face some implementation hurdles and resistance, its focus on digital accountability, legal reform, and public welfare signals a paradigm shift. The real test lies in the efficient execution of these reforms at the grassroots level, ensuring that waqf resources truly serve the public good as originally intended.

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