What is Waqf and why is it so important?
The changing security scenario requires heightened oversight and regulatory frameworks to guarantee that Waqf properties fulfill their objectives and align with national security goals, especially in combating terrorism and financial crimes in India.
Waqf in Islam means dedicating property or assets in perpetuity to religious, educational, or charitable purposes. Under the regulatory framework of the Waqf Act of 1995 and its subsequent amendments, the Waqf Boards manage these properties to support welfare activities like education, healthcare and social upliftment.
Despite its noble targets, the Waqf system has been affected by mismanagement, corruption and illegal occupation. It is feared that Waqf properties are being misused for anti-national activities, money laundering and terror financing, with the administration of Waqf properties lacking financial transparency. As India continues to face challenges from cross-border terrorism and radical financing networks, scrutiny of Waqf resources is therefore critical for national security.
Amendments to Waqf Laws: Strengthening Oversight
As concerns mounted, successive governments introduced amendments to the Waqf Act to increase accountability and address concerns about misuse of the Waqf property. The 2013 Act intended to ensure more transparency, was introduced in Waqf affairs by having them maintain better records of properties, preventing their illegal sale or transfer, digitisation of Waqf properties and stricter monitoring mechanisms. Some of the main changes are as follows:
1.Digitisation and GIS Mapping of Waqf Properties: Better documentation towards preventing illegal encroachment.
2.Mandatory Audits and Financial Disclosures: Strengthening financial accountability by mandating regular audits.
3.Enhanced Role of the Central Waqf Council: Empowering regulatory bodies to oversee state Waqf Boards effectively.
4.Stronger Provisions Against Misuse: Harsh penalties for mismanagement and corruption
Waqf (Amendment) Bill, 2025: A Unifying Force for Transparency and Security
The Lok Sabha passed the Waqf (Amendment) Bill 2025 on 3rd April, 2025. This reflects a historic step towards promoting transparency and accountability in managing Waqf properties in India. This Bill seeks to transfer Waqf assets from the hands of those who exploit them while fortifying Waqf governance.
A significant feature of the amendment is that it will include non-Muslims in Waqf Boards, leading to more inclusiveness and transparency in decision-making. The bill also gives the District Collectors the power to decide the ownership of properties. This will decrease the dispute and provide a barrier against unauthorised claims over Waqf land.
The Supreme Court has also held that it is the responsibility of the state to protect the Waqf property, which involves national security interests, financial mismanagement, illegal encroachment and preventing Waqf funds from being used for unlawful activities like terror financing. With this new decree, the government sends a message to monitor the Waqf properties closely to stamp out corruption and ensure that their proceeds are used for their intended welfare purposes.
Mixed reactions to the bill have been fielded, including concern for Waqf autonomy, but it is a necessary step towards harmoniously apprehending religious rights with national security imperatives. Better oversight and improved accountability will safeguard community equities and India’s more significant strategic interests.
These provisions would enforce transparency and prevent misuse of funds in the nation, strengthening India’s national security and governance. This way, the management of Waqf properties would remain more accountable, as increased oversight and broader representation would curb corruption and ensure better utilisation of funds. Furthermore, verifying property ownership via governmental agencies mitigates the possibility of unlawful encroachment and the misallocation of funds and guarantees that these assets serve their intended philanthropic and developmental goals. A properly regulated and transparent Waqf framework further reduces the risk of misuse of religious endowments for illegal activities, including terror financing, thus bolstering India’s security architecture. Although the government claims these changes are intended to prevent corruption and enhance property management, critics argue they would violate Muslim property rights and open the door for potential government overreach. Waqf properties have been misused, but if the bill is coupled with solid safeguards, it could also be a significant step forward in ensuring that they are put to productive use for the popular welfare and not abused.
Link between Waqf Funds and Terror Financing
The suspected use of philanthropic commitments for extremism has increasingly attracted the attention of security agencies in India as well as worldwide. Unregulated Waqf properties have been used for illegal financial transactions in several cases. The paramount risks Waqf Boards face comprise:
- Lack of Transparency in Fund Utilisation: Failure of adequate financial disclosures creates loopholes for extremists to exploit.
- Unregulated Foreign Donations: Unmonitored foreign contributions can be used as a conduit for illegal funding, directly threatening India’s security.
- Illegal Leasing and Encroachments: Unauthorised owners and political land deals encourage corruption and possible crimes.
Given India’s exposure to terror financing, notably from hostile bordering countries, there is a need to have a substantial piece of machinery to monitor transactions carried out under Waqf to prevent its misuse, which is paramount to the integrity of its national security.
Strengthening National Security through Reforms
Legal, financial and intelligence-based strategies must handle these worries. To strengthen Waqf governance, the following measures are recommended to align it with national security interests:
1. Stricter Financial Oversight: Implement AI-based mechanisms to track the movement of Waqf funds and identify suspicious activities that facilitate extremist group financing.
2. Enhanced Coordination with Security Agencies: Establishing a direct reporting mechanism between Waqf Boards and national security agencies such as the Financial Intelligence Unit (FIU), Enforcement Directorate (ED) and National Investigation Agency (NIA) to flag and investigate potential financial crimes.
3. Regulating Foreign Donations: Tighter controls on foreign donations can prevent foreign elements, especially those linked with radical organisations, from entering domestic religious trusts.
4. Independent Regulatory Body: An independent regulatory body with the powers of investigations on the lines of the CBI to oversee the functioning of Waqf Boards on the national security interest.
5. Public Transparency Measures: Waqf Boards should publish their financial statements in the public domain to promote transparency, minimise corruption and act as an agent of national security.
6. Legal Reforms for National Security: Making amendments to the Waqf Act to include provisions applicable to terrorism and related acts as practiced in India through laws like the Unlawful Activities (Prevention) Act (UAPA) and Prevention of Money Laundering Act (PMLA) that will deter the misuse of religious endowments for anti-state activities.
Conclusion
However, the Waqf Board amendments are vital in the journey towards more responsible governance of religious endowments in India. Providing a framework for the administration of the Waqf property, the Waqf (Amendment) Bill, 2025, ultimately lays down the long-awaited transparency and inclusivity that will help to protect against the abuse of Waqf, amending its character while bringing it in line with proper administration. Nonetheless, in light of the continuing risks associated with terror financing and illicit funds moving, the regulatory architecture needs to be further updated and its implementation strengthened to protect national security interests. Thus, by reinforcing financial transparency, incorporating security frameworks and implementing independent regulatory authorities, Waqf properties will serve their original objective without allowing them to be used for anti-national purposes. The need of the hour is a sensitive balancing act between protecting the sacred tenets of religious freedom and national security interests while ensuring that India remains resilient to financial threats from extremist elements.