India encompasses one of the largest Waqf property systems in the world. Waqf derives its importance from the guidance of Prophet Muhammad, who guided to tie up assets and give away the fruits of it. It means that the proceeds of such property are to be used for the welfare of society as per Islamic customs. The maladministration and maintenance of waqf properties have been a major problem for several decades. To counter these issues, the Government enacted the Waqf (Amendment) Act, 2025 also known as UMEED (Unified Waqf Management, Empowerment, Efficiency and Development) Act, which brought about contemporary changes intended to safeguard and streamline the processes associated with Waqf assets.

What is Waqf?

Waqf, derived from the Arabic word “waqufa”, means to detain, hold, or tie up. According to Section 3(r) of The Waqf Act, 1995, “wakf” means the permanent dedication by any person, of any movable or immovable property for any purpose recognised by Muslim law as pious, religious, or charitable. It is the voluntary and irrevocable endowment of one’s property aiming at the welfare of the Islamic community, such as financing for educational institutions, graveyards, mosques, hospitals and shelter homes. In the case of (Syed Shah) Muhammad Kazim v. (Syed) Abi Saghir, 1931 SCC OnLine Pat 97, the Patna High Court observed that a waqf is substantial dedication of the usufruct of the property to charitable, religious or other good purposes.

History of Waqf Laws in India

Waqf properties in India have been regulated by several laws since the pre-independence era, but, post-independence, the Waqf Act came into existence in 1954 for the administration of waqf properties. Waqf Boards were established in every state to manage and safeguard these properties, however, over the years, it was observed that waqf lands continued to be misappropriated and lost due to various irregularities and lapses. In light of these persistent issues, the earlier legislations were repealed and substituted by the Waqf Act, 1995, which consolidated and amended previous laws.

Waqf Act, 1995

The Indian government passed a comprehensive legislation, the Waqf Act, 1995, to enhance the management and administration of waqf properties. It divided the authority between Chief Executive Officers and Waqf Boards by establishing the Central Waqf Council and State Waqf Boards. Other key provisions of the 1995 Act included the requirement of all Waqfs properties to be registered with the Waqf Board, upkeep of a central Waqf registry, duties of Mutawalis (Managers of waqf), the power of Waqf Boards to designate executive officers, periodic surveys to identify waqf properties, and the establishment of special tribunals having similar powers as civil court called Waqf Tribunals. The Act also mandated appointing executive officers for waqfs with annual incomes over Rs.5 lakh. 

However, the government again amended the Act in 2013 due to enforcement inadequacies and increasing encroachment cases. Acknowledging the need for stronger safeguards, the 2013 amendment brought several key changes, including the criminalization of unauthorized transfers and encroachments of waqf properties, the inclusion of women’s representation in State Waqf Board, prohibition in the sale or gifting of Waqf properties, providing exclusive jurisdiction to Waqf Tribunals and further strengthening the power of the Waqf Boards. While these changes aimed to safeguard waqf properties, they were criticized for their arbitrary designation of private property as waqf and lack of adequate legal remedy, which opened the door for reform with the Waqf (Amendment) Act, 2025.

Major issues in the Previous Waqf Law

  • Exclusion of judicial intervention: Decision of Waqf Tribunal is final and binding. It cannot be challenged in any higher court. 
  • Permanent Dedication of property: This principle leads to a large number of disputes over governmental properties.
  • Over-reaching power of Waqf Board: The unjustified power of Waqf Board to declare any private property or government property as Waqf Property. 
  • Backlog of cases: Thousands of cases are pending without any adjudication.

Need for the Waqf (Amendment) Act, 2025

Even after so many amendments, the Waqf administration continued to struggle. The Government received several complaints relating to the mismanagement of waqf properties, ownership disputes, illegal encroachment, and the lack of transparency in the waqf board. The Waqf tribunal declared around 5,973 government properties as waqf, according to government reports. More than 40,000 cases have been pending before the tribunal for years. All these factors led to the call for better transparency, accountability, and protection of Waqf properties to benefit the community as a whole.

Key Changes 

  • Retention of “waqf by user” doctrine: The amendment permits already registered ‘waqf by user’ properties to retain their existing status; however, it bars the prospective application of this doctrine following the present amendment. It is pertinent to note that even if a property is registered as ‘waqf by user’, such registration shall not be valid if the land in question is government-owned, whether disputed or identified as such.
  • Revocation of over-reaching power of the waqf board: The amendment takes away the power of the waqf board to determine and declare any land as “Waqf.”
  • Composition of Waqf Boards: The amendment has restructured the composition of the waqf board. The amendment mandates the inclusion of two non-muslim members on the board. Further, there is an obligation to have at least two women members. 
  • Appeal against orders of the tribunal: The amendment abolished the binding nature of the tribunal’s decision. It can now be challenged in the High Court within 90 days of such a decision.
  • Composition of the Tribunal: The amendment removed the requirement of Muslim experts in the tribunal. The Tribunal now consists of a retired or current District Judge as its chairman and a current or former officer of the rank of joint secretary to the state government.
  • Waqf Survey: The collector will conduct the surveys of waqf properties instead of the survey commissioner appointed under the 1995 Act.
  • Digital registration portal: Tracing the record of waqf property was one of the biggest concerns but, with the amendment, now, an online platform will keep track of the waqf properties. Registration of new waqf property is to be done through this portal.
  • Application of the Limitation Act: The amendment makes the Limitation Act applicable to waqf properties. As per the limitation act, the cap of 12 years is applicable for reclaiming the encroached waqf properties.
  • Protection of Inheritance Rights: The Waqf Amendment Act 2025 mandates that no property shall be designated as Waqf until women and children have received their lawful inheritance.
  • Eligibility for Donating Property as Waqf: Property can only be dedicated to Waqf if the owner has been a practicing Muslim for at least five years.
  • Financial Reforms: The Act reduces the financial contribution payable by the   Waqf board from 7% to 5% in order to give Waqf organizations more financial freedom and free up more money for charitable endeavors. Furthermore, to maintain financial transparency, government audits will be conducted on institutions that earns more than ₹1 lakh annually.

Conclusion

The Waqf (Amendment) Act, 2025 offers a landmark change in the administration of religious and charitable endowments in India. It tries to achieve a balance between the two significant goals: the preservation of waqf properties for their intended charitable and religious purposes and the protection of landowners from arbitrary exercise of power of the Waqf board. The amendment attempts to strike a balance between justice and ensuring no undue exploitation takes place by adding more procedural safeguards. It overcomes issues arising from earlier amendments by making prior consent mandatory, providing notice and hearing before any classification, and eliminating provisions permitting unilateral declarations on the basis of surveys. The Act also fosters transparency by facilitating digitization and synchronization with land revenue records. By these reforms, the legal system managing waqf estates is rendered more organized, with a focus on documentation, due process, and maintenance of records. 

 

Author: Shantanu Garg, Senior Associate

Co-Author: Simran Khan, Intern