On a shoestring: Waqf wallet shrinks on dwindling property income

This is despite an increase in properties registered under the Waqf

The net income from Waqf properties -- which in turn is used for the welfare of the Muslim community -- has seen a sharp 99 per cent fall over five years between 2019-20 and 2023-24. It is despite an increase in the number of properties registered under the Waqf.
As a result, there is little left to spend on community welfare, after accounting for all other expenses, especially since the pandemic.

Collectively, Waqf properties across various states had a net income of over ~80 crores in 2014-15 (FY15) and also in 2015-16 (FY16), shows data from the Waqf Assets Management System of India (WAMSI). 

This gradually increased in the subsequent years and exceeded ~150 crores in FY19 and FY20.

However, in the years after, there has been a steady decline in their earnings. And in FY24, the net income generated from Waqf properties fell to about ~1.26 crore. The entire income came from three states, as others have declared nil net income. (chart 1).

Queries to Waqf Council and Minority Affairs ministry seeking reason for this sharp decline in net income remained unanswered till the press time.

Net annual income includes the gross annual income less the expenditures on taxes or license fees paid to the government or any local authority, repairs and maintenance, and wages.

The Waqf Act 1995 says that government grants, public donations, or fees collected from educational institutions or other such earnings from “non-remunerative undertakings” like school, colleges, hospitals or orphanages cannot be considered as income.

Waqf boards have also been accused of financial mismanagement and corruption.

The central government, which tabled a Bill in the Budget session of Parliament seeking amendment, had also alleged mismanagement. The Bill, which was later referred to a Joint Parliamentary Committee, seeks to increase accountability and transparency in state Waqf boards.

Faizan Mustafa, vice-chancellor of Chanakya National Law University, Patna says that these Waqf properties need to be developed so that their incomes increase and the dependence on the government for welfare activities for Muslims reduces.

“These are old properties, pay a very small amount of rent and are never vacated. Most of the Waqf properties are centrally located and if they are developed into commercial centres then they would give better returns,” he says.

The accounts of the various Waqf boards are examined by auditors appointed by the state government.

“Since most of the nominations to the Waqf boards and Waqf council are done by the government it can, under the 1995 Act, also get the accounts audited by anyone it deems fit for the job. But if the Comptroller and Auditor General (CAG) under the new Bill does so, it is fine,” says Mustafa.

Even so, properties registered under the Waqf have tripled in the decade since FY15 (chart 2).
 

But with more than 232,500 registered properties, Uttar Pradesh has over a fourth of all Waqf properties in the country. This is followed by West Bengal (9.23 per cent), Punjab (8.7 per cent), Tamil Nadu (7.6 per cent), Karnataka (7.2 per cent) and Kerala (6.11 per cent) (chart 3).  

While 17 per cent of all the registered properties are graveyards, another 16 per cent are agricultural lands, 14 per cent are mosques, 13 per cent are shops and 11 per cent are houses.