What Is Waqf and Why Are You at Risk?
We have all heard about the Waqf Amendment Bill 2024 introduced by the central government. Many of us are also familiar with the frequent disputes that arise between Waqf boards in various states and ordinary citizens.
Recently, the Waqf board even laid claim to an entire village in Tamil Nadu, including a 1,500-year-old temple, which is older than the religion itself. But do we all know exactly what Waqf is?
For ease of understanding, let’s consider the story of a salaried man in four phases. Let’s say this is your story!
Phase 1: Land for Your Dream Home
Let’s assume that you bought 10 cents of land from a Muslim seller for INR 50 lakhs. This is the money you saved over two decades with the dream of building a home on your land. You have paid the seller, prepared the title deed, registered the land, received the possession certificate, and completed all other related formalities.
The land now appears in your name on the Encumbrance Certificate, which is accessible online through the government portal. Once this certificate is issued, you can have peace of mind, as the land is officially yours. You now have all the documents needed to apply for a bank loan to build your home.
Keep in mind that banks have strict checks, and they thoroughly scrutinize all documents related to the land before approving the loan.
Phase 2: Your Dream Home Takes Shape
Now you move forward with building your dream home. Let’s assume it costs another INR 50 lakhs to construct the house. You have INR 25 lakhs left in savings, so you decide to apply for a bank loan for the remaining INR 25 lakhs.
The home you have dreamed about for the past 25 years is finally a reality. On an auspicious day, you hold a housewarming ceremony and begin living in your new home.
Until now, you have used all your savings of INR 75 lakhs and taken a bank loan for another INR 25 lakhs.
Phase 3: WAQF Enters
Three months later, you are informed that the Waqf board has raised a claim on your land.
According to the Waqf board, the great-grandfather of the person from whom you bought the land had handed it over to Waqf.
Phase 4: Your Options
You wonder if the revenue department might have some data related to this. After all, you had thoroughly vetted the matter, and even the bank had approved a loan on the land. However, no such document exists with the revenue department — this information is known only to the Waqf board.
You still feel confident. After all, you’re not living in a banana republic. You believe you can easily prove your ownership in court with all the documents in your possession. But no — you cannot go to court. Waqf cases are handled by the Waqf tribunal, which consists exclusively of Muslim members.
You move to your next option: filing a cheating case against the seller of the land. You are determined to get your money back through the court. But no — that’s not possible. The seller can claim that he had no knowledge of the Waqf board’s claim. He sold the land and received money from you in accordance with existing laws. Therefore, unless a new law is enacted with retrospective effect by Parliament, the seller is not obligated to return the money he received from you.
Phase 5: The Final Nail in the Coffin
It’s now almost certain that the Waqf board will take over your land. You are devastated that the INR 50 lakhs you paid for the land and the INR 25 lakhs you spent on building the house are all going to be taken away from you. Furthermore, you are now left with a bank loan of INR 25 lakhs. You decide to approach the bank and ask them to take over the land and the house. But no! This is not possible either. The bank’s claim on the property is based solely on the mortgage of the land, which you signed, asserting that you have primary ownership and possession of the land. If you are not the owner, the mortgage also becomes void.
What about the bank loan?
The loan is in your name, and you have used it to build the house. The loan is secured against the property. Even if the house is taken away, the loan will continue to exist in your name, and you remain liable to the bank. The outstanding loan will still be recorded under your name. If you do not repay the loan, it will negatively impact your CIBIL history. A poor CIBIL rating means that no bank will be willing to extend another loan to you in the future.
Furthermore, the bank loan was issued based on your repayment ability. This means that the monthly EMI was calculated according to your salary and your capacity to repay. Therefore, it is impossible for you to consider another loan to build another house, as no bank will issue you a loan beyond your ability to repay. Unless, of course, your monthly income reaches into the lakhs, in which case you could start all over again! Regardless, it will take the remainder of your working life to pay off the existing loan. You therefore decide to give up on your dream home.
This is not fiction or imaginary; this could happen to any of us, God forbid. The scenario described above is based entirely on the unlimited powers granted to the Waqf board by previous central governments. It doesn’t matter whether you are Hindu or Christian; the Waqf claim will be valid!
Content Reference: Social Media Post in Malayalam by Sathyan Chowara on Janabhumi TV
