Abstract: The enactment of the Waqf (Amendment) Act, 2025 represents a pivotal reform in the management and administration of Waqf properties—religious endowments dedicated predominantly to charitable, educational, and religious purposes in Muslim communities.

INTRODUCTION

The enactment of the Waqf (Amendment) Act, 2025 represents a pivotal reform in the management and administration of Waqf properties—religious endowments dedicated predominantly to charitable, educational, and religious purposes in Muslim communities. Waqf institutions have traditionally served as a cornerstone for socio-economic development in Muslim societies by providing sustained funding for mosques, madrasas, orphanages, and other philanthropic activities.

However, despite their critical role, many Waqf properties have faced severe challenges, including mismanagement, encroachment, lack of transparency, and financial inefficiency. These issues have eroded the potential benefits that such endowments could offer to communities.

The 2025 Amendment Act is thus a comprehensive legislative effort aimed at reforming the legal, administrative, and financial frameworks governing Waqf institutions, thereby ensuring their proper upkeep, enhanced governance, and effective utilization for social welfare.

HISTORICAL CONTEXT AND IMPORTANCE OF WAQF

The concept of Waqf has deep roots in Islamic jurisprudence. Derived from the Arabic word waqf, meaning “to stop” or “to hold,” Waqf refers to the donation of assets by an individual or group, dedicating them perpetually for religious or charitable purposes. These assets typically include land, buildings, and cash, entrusted to a custodian or trustee who manages them for the benefit of the community.

Historically, Waqf properties have been instrumental in establishing and maintaining mosques, schools, hospitals, and feeding centers, thereby fostering social cohesion and welfare. They represent a form of social security and charity embedded within the community fabric.

Despite their noble intent and social value, many Waqf properties have been underutilized or lost due to:

• Administrative inefficiencies and outdated governance models, leading to poor decision-making and lack of accountability.
• Encroachment and illegal occupation of Waqf lands by private entities or individuals.
• Inadequate legal protection and enforcement mechanisms.
• Financial opacity and mismanagement, reducing the income that can be generated from these assets.
• Fragmentation and lack of centralized data, making it difficult to manage or safeguard properties effectively.

The Waqf (Amendment) Act, 2025 addresses these challenges by bringing modern management principles, technology, and stricter regulatory oversight into the Waqf sector.

Key Features and Provisions of the Waqf (Amendment) Act, 2025

1. STRENGTHENING GOVERNANCE AND ACCOUNTABILITY

One of the most crucial aspects of the amendment is the reinforcement of governance structures:

• Independent Oversight Committees will be established at both the central and state levels. These committees will include members from diverse backgrounds such as legal experts, financial auditors, community representatives, and Islamic scholars.
• The Act mandates annual financial audits conducted by certified professionals. Audit reports will be submitted to the Ministry overseeing Waqf affairs and made available for public scrutiny.
• Performance metrics and targets for Waqf boards will be introduced to ensure efficiency and responsiveness.
• Provisions to prevent conflicts of interest among trustees and board members will be strengthened.

This overhaul ensures that Waqf institutions function with integrity, transparency, and in alignment with their charitable objectives.

2. DIGITALIZATION AND TRANSPARENCY INITIATIVES

To modernize Waqf management, the Act mandates:

Creation of a centralized digital Waqf Registry, where detailed records of all Waqf properties, including maps, ownership status, income, and usage, will be maintained.

• Use of blockchain technology in selected pilot states to secure property records against tampering and fraud.
• An online platform for public access to Waqf property data, facilitating transparency and allowing beneficiaries to track how assets are managed.
• Establishment of digital grievance redressal mechanisms enabling stakeholders to report issues such as encroachment or financial irregularities.

Digitalization will significantly reduce information asymmetry and make Waqf boards more accountable.

3. PROTECTING WAQF PROPERTIES FROM ENCROACHMENT

Encroachment has been a longstanding problem faced by Waqf institutions. To combat this:

• The Act empowers the formation of special enforcement task forces with legal authority to identify, prevent, and remove encroachments.
• The process for initiating legal action against encroachers will be expedited, minimizing bureaucratic delays.
• Harsher penalties, including fines and imprisonment, will be introduced for illegal occupation or unauthorized transfer of Waqf assets.
• Coordination mechanisms between Waqf boards, local law enforcement, and revenue departments will be strengthened for better protection.

These steps aim to restore and secure the integrity of Waqf properties, ensuring their use as intended by the donors.

4. FINANCIAL REFORMS AND SUSTAINABLE UTILIZATION

Maximizing the financial potential of Waqf assets is essential for sustaining charitable activities:

• The amendment encourages commercial development on Waqf properties in accordance with religious and legal principles, such as leasing out land for shops, offices, or residential use, under transparent tender processes. Investment guidelines will be formulated to enable Waqf boards to invest surplus funds safely and generate steady income streams.
• The Act introduces clear frameworks for the use of generated income in welfare activities, including education, healthcare, poverty alleviation, and disaster relief.
• Mechanisms for financial transparency and accountability will be enforced, ensuring that funds are appropriately used and reported.

This financial reform will not only protect assets but also help expand the reach of Waqf-based social services.

5. ENCOURAGING COMMUNITY PARTICIPATION AND CAPACITY BUILDING

Recognizing the importance of grassroots involvement:

• The Act provides for the inclusion of community members, religious scholars, and subject matter experts on Waqf boards to reflect the diverse interests of beneficiaries.
• Training and capacity-building programs for Waqf administrators will be institutionalized, focusing on governance, legal compliance, financial management, and ethical stewardship.
• Public awareness campaigns will educate communities about their rights and responsibilities related to Waqf properties.

Such participatory governance is expected to improve decision-making and foster a stronger sense of ownership among stakeholders.

BROADER IMPLICATIONS AND IMPACT

The Waqf (Amendment) Act, 2025 is poised to have far-reaching effects on the Muslim community and the wider society:

• Economic Empowerment: By revitalizing Waqf assets and generating reliable income, the amendment can fund large-scale welfare projects, scholarships, healthcare facilities, and disaster relief programs.
• Social Equity: Improved governance will ensure that marginalized groups within the community benefit from Waqf resources, reducing disparities. 
• Legal Clarity and Protection: Streamlined dispute resolution and stronger anti-encroachment laws will preserve Waqf assets from exploitation.
• Technological Advancement: The push for digital records and transparency aligns Waqf institutions with global best practices in trust management.
• Interfaith and Societal Harmony: Efficient use of Waqf resources for humanitarian causes can strengthen inter-community relations and national integration.

Ultimately, the Act reflects a progressive vision of integrating religious traditions with modern governance to promote social justice and community development.

CONCLUSION

The Waqf (Amendment) Act, 2025 marks a landmark reform in the legal and administrative landscape of religious endowments. By addressing decades-old issues of mismanagement, opacity, and encroachment, the amendment lays the foundation for a more transparent, accountable, and efficient Waqf system.

Through digitalization, enhanced governance, financial reforms, and community engagement, the Act ensures that Waqf properties fulfill their original purpose of serving the needy and uplifting the community. The success of this legislation will depend on effective implementation and sustained collaboration between the government, religious authorities, and civil society.

In a broader sense, these reforms demonstrate how faith-based institutions can adapt to contemporary challenges and contribute meaningfully to socio-economic progress, making the Waqf (Amendment) Act, 2025 a milestone in the journey toward inclusive development.

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