It is a year since the Government formed a corporation for identifying and developing idle Waqf properties to protect them from encroachment and make them money churning ventures, but very little has moved since then.
Of the five lakh registered Waqf properties, the Government has only managed to identify 16 properties — two in Rajasthan, one in Delhi, six in Madhya Pradesh and seven in Karnataka — for institutional and commercial development. Construction work has started only on two properties so far — both in Rajasthan — one for a hospital in Jodhpur and the other for a school in Ajmer.
“We have identified 16 properties and talks for developing three properties in Karnataka are at an advanced stage. It is a complicated procedure and convincing the State Waqf council members itself is a task,” said an official from the Ministry of Minority Affairs (MoMA).
“Sixteen properties may sound like a small number when compared to all registered properties, but it was a daunting task. The procedure from here on is also not too simple. Besides identifying the development model, we also have to find investors to fund the project,” said the official.
The Government has also roped in consulting companies- Ernst and Young, Crisil and Knight Frank — to guide them on the investment options. Only last November, the Ministry of Minority Affairs met with real-estate agents, financiers and investors to brainstorm on possible commercial ventures.
“Unlike any other property, which can be leased out for a term of 100 years, Waqf properties can be given out for 30 years’ lease sharing basis,” said an official. “A proper business model needs to be worked out between the three stakeholders — State Waqf boards, NAWADCO and third party investors. We need to turn around the idle properties in the shortest span, with maximum benefits,” said the official. According to Government records, there are at least five lakh registered Waqf properties, spread over six lakh acres valuing over Rs1.2 lakh crore.
While the current annual income from Waqf assets is about Rs163 crore, Sachar Committee had estimated that these properties, if properly developed, could be capable of generating an income of Rs12,000 crore per annum.
NAWADCO was established in January last year as a follow up of Sachar Committee recommendation with authorised share capital of Rs500 crore and paid up capital of Rs100 crore.