FINANCE OF THE BOARDCentral

Section 74 of The Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995

Deduction of contribution from perpetual annuity payable to the waqf.

74. Deduction of contribution from perpetual annuity payable to the 1[waqf].--(1) Every authority empowered to disburse any perpetual annuity payable to a 1[waqf] under any law relating to the abolition of zamindars or jagirs, or laying down land ceilings, shall, on receipt of a certificate from the Chief Executive Officer, specifying the amount of contribution payable by the 1[waqf] under section 72 which remains unpaid, deduct before making payment of the perpetual annuity to the 1[waqf], the amount specified in such certificate and remit the amount so deducted to the Chief Executive Officer.

(2)Every amount remitted under sub-section (1) to the Chief Executive Officer shall be deemed to be a payment made by the 1[waqf] and shall, to the extent of the amount so remitted, operate as a full discharge of the liability of such authority with regard to the payment of the perpetual annuity.

Summary

The government can subtract unpaid waqf fees directly from fixed yearly payments.
If a waqf owes money for its annual contribution, the Chief Executive Officer issues a certificate stating the debt.
The authority that pays out government grants or land reform annuities will then deduct that debt before paying the waqf.
This deduction counts as a full payment of that debt by the waqf.
It also fully clears the government authority of its obligation to pay that specific portion of the annuity.

Practical examples

1The Karim Jan Waqf is entitled to receive 50,000 rupees every year from the state treasury as compensation for historical land reforms. However, the manager failed to pay the 3,000 rupee mandatory annual fee to the Board. The Chief Executive Officer sends a certificate to the treasury. The treasury pays 47,000 rupees to the waqf and sends the 3,000 rupees directly to the Board.

2A local authority is supposed to pay a perpetual annuity of 10,000 rupees to a small graveyard trust. The trust has an outstanding debt to the Board of 500 rupees. Under Section 74, the authority deducts 500 rupees from the payment on July 21, 2026, and remits it to the Board, satisfying the debt without the manager having to manually write a check.

FAQ

1. How does the Board recover unpaid contributions from government annuities under Section 74 of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995?

Under Section 74 of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995, the Chief Executive Officer sends a certificate specifying the unpaid amount to the authority in charge of the annuity, who then deducts it from the payment.

2. Does a deduction under Section 74 of the 1995 Waqf Act count as a payment by the waqf?

Yes, every amount subtracted and sent to the Chief Executive Officer under Section 74 of the 1995 Waqf Act is legally deemed to be a payment made by the waqf itself.

3. Can any authority deduct waqf fees under Section 74 of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995?

Only authorities empowered to pay perpetual annuities under laws like those for the abolition of zamindars or land ceilings can make these deductions under Section 74 of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995.

Test yourself

1.Under Section 74 of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995, what document must the Chief Executive Officer provide to trigger a deduction?

2.Which section of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995 defines the annual contribution that might be deducted under Section 74?

3.Under Section 74 of the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995, what happens to the liability of the authority after they remit the deducted amount?

4.Under Section 74 of the 1995 Waqf Act, who receives the money deducted from the annuity?

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