Section 70 in The Waqf Act, 1995

Title: Inquiry relating to administration of waqf

Description: 70. Inquiry relating to administration of 1[waqf].--Any person interested in a 1[waqf] may make an application to the Board supported by an affidavit to institute an inquiry relating to the administration of the 1[waqf] and if the Board is satisfied that there are reasonable grounds for believing that the affairs of the 1[waqf] are being mismanaged, it shall take such action thereon as it thinks fit. 1. Subs. by Act 27 of 2013, s. 4, for "wakf" (w.e.f. 1-11-2013).

Title: Manner of holding inquiry

Description: (1) The Board may, either on an application received under section 2[70] or on its own motion,-- (a) hold an inquiry in such manner as may be prescribed; or (b) authorise any person in this behalf to hold an inquiry into any matter relating to a 1[waqf] and take such action as it thinks fit. (2) For the purposes of an inquiry under this section, the Board or any person authorised by it in this behalf, shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) for enforcing the attendance of witnesses and production of documents. 1. Subs. by Act 27 of 2013, s. 4, for "wakf" (w.e.f. 1-11-2013). 2. Subs. by s. 40, ibid., for "73" (w.e.f. 1-11-2013).

Title: Annual contribution payable to Board.

Description: (1) The mutawalli of every 1[waqf], the net annual income of which is not less than five thousand rupees, shall pay annually, out of the net annual income derived by the 1[waqf], such contributions, not exceeding seven per cent. of such annual income, as may be prescribed, to the Board for the services rendered by such Board to the 1[waqf]. Explanation I .--For the purposes of this Act, "net annual income" shall mean the gross income of the 1[waqf] from all sources, including nazars and offerings which do not amount to contributions to the corpus of the 2[auqaf], in a year after deducting therefrom the following, namely:-- (i) the land revenue paid by it to the Government; (ii) the rates, cesses, taxes and licence fees, paid by it to the Government or any local authority; (iii) expenditure incurred for all or any of the 3[in respect of lands directly under cultivation by the mutawalli for the benefit of the waqf], namely:-- (a) maintenance of, or repairs to, irrigation works, which shall not include the capital cost of irrigation; (b) seeds or seedlings; (c) manure; (d) purchase and maintenance of agricultural implements; (e) purchase and maintenance of cattle for cultivation; (f) wages for ploughing, watering, sowing, transplanting, harvesting, threshing and other agricultural operations: Provided that the total deduction in respect of an expenditure incurred under this clause shall not exceed 4[twenty per cent.] of the income derived from lands belonging to the 1[waqf]: 5[Provided further that no such deduction shall be permitted in respect of waqf land given on lease, by whatever name called, whether batai or share cropping or any other name.] (iv) expenditure on sundry repairs to rented buildings, not exceeding five per cent. of the annual rent derived therefrom, or the actual expenditure, whichever is less; (v) sale proceeds of immovable properties or rights relating to, or arising out of immovable properties, if such proceeds are reinvested to earn income for the 6[waqf]: Provided that the following items of receipts shall not be deemed to be income for the purposes of this section, namely:-- (a) advances and deposits recovered and loans taken or recovered; (b) deposits made as security by employees, lessees or contractors and other deposits, if any; (c) withdrawals from banks or of investments; (d) amounts recovered towards costs awarded by courts; (e) sale proceeds of religious books and publications where such sales are undertaken as an un-remunerative enterprise with a view to propagating religion; (f) donations in cash or kind or offerings made by the donors as contribution to the corpus of the 6[waqf]: Provided that interest on income, if any, accruing from such donations or offerings shall be taken into account in calculating the gross annual income; (g) voluntary contributions received in cash or kind for a specific service to be performed by the 6[waqf] and expended on such service; (h) audit recoveries; Explanation II.--In determining the net annual income for the purposes of this section, only the net profit derived by any 6[waqf] from its remunerative undertakings, if any, shall be taken as income, and in respect of its non-remunerative undertakings, such as, schools, colleges, hospitals, poor homes, orphanages or any other similar institutions, the grants given by the Government or any local authority or donations received from the public or fees collected from the pupils of educational institutions shall not be taken as income. (2) The Board may in the case of any mosque or orphanage or any particular 6[waqf] reduce or remit such contribution for such time as it thinks fit. (3) The mutawalli of a 6[waqf] may realise the contributions payable by him under sub-section (1) from the various persons entitled to received any pecuniary or other material benefit from the 6[waqf], but the sum realisable from any one of such persons shall not exceed such amount as shall bear to the total contribution payable, the same proportion, as the value of the benefits receivable by such person bears to the entire net annual income of the 6[waqf]: Provided that if there is any income of the 6[waqf] available in excess of the amount payable as dues under this Act, other than as the contribution under sub-section (1), and in excess of the amount payable under the 6[waqf] deed, the contribution shall be paid out of such income. (4) The contribution payable under sub-section (1) in respect of a 6[waqf] shall, subject to the prior payment of any dues to the Government or any local authority or of any other statutory first charge on the 6[waqf] property or the income thereof, be a first charge on the income of the 6[waqf] and shall be recoverable, on a certificate issued by the Board after giving the mutawalli concerned an opportunity of being heard, as an arrear of land revenue. (5) If a mutawalli realises the income of the 7[waqf] and refuses to pay or does not pay such contribution, he shall also be personally liable for such contribution which may be realised from his person or property in the manner aforesaid. (6) Where, after the commencement of this Act, the mutawalli of a 7[waqf] fails to submit a return of the net annual income of the 7[waqf] within the time specified therefor or submits a return which, in the opinion of the Chief Executive Officer is incorrect or false in any material particular, or which does not comply with the provisions of this Act or any rule or order made thereunder, the Chief Executive Officer may assess the net annual income of the 7[waqf] to the best of his judgment or revise the net annual income as shown in the return submitted by the mutawalli and the net annual income as so assessed or revised shall be deemed to be the net annual income of the 7[waqf] for the purposes of this section: Provided that no assessment of net annual income or revision of return submitted by mutawalli shall be made except after giving a notice to the mutawalli calling upon him to show cause, within the time specified in the notice, as to why such assessment or revision of the return shall not be made and every such assessment or revision shall be made after considering the reply if any, given by the mutawalli. (7) Any mutawalli who is aggrieved by the assessment or revision made by the Chief Executive Officer, under sub-section (6), may prefer an appeal to the Board within thirty days from the date of the receipt of the assessment or revision of return and the Board may, after giving the appellant a reasonable opportunity of being heard, confirm, reverse or modify the assessment or revision or the return and the decision of the Board thereon shall be final. (8) If, for any reason, the contribution or any portion thereof leviable under this section has escaped assessment in any year, whether before or after the commencement of this Act, the Chief Executive Officer may, within five years from the last date of the year to which such escaped assessment relates serve upon the mutawalli a notice assessing him with the contribution or portion thereof which had escaped assessment, and demanding payment thereof within thirty days from the date of service of such notice, and the provisions of this Act and the rules made thereunder, shall, as far as may be, apply as if the assessments were made under this Act, in the first instance. 1. Subs. by Act 27 of 2013, s. 4, for "wakf" (w.e.f. 1-11-2013). 2. Subs. by s. 4, ibid., for "wakfs" (w.e.f. 1-11-2013). 3. Subs. by s. 41, ibid., for "following purposes" (w.e.f. 1-11-2013). 4. Subs. by s. 41, ibid., for "ten per cent." (w.e.f. 1-11-2013). 5. Ins. by Act 27 of 2013, s. 41 (w.e.f. 1-11-2013). 6. Subs. by s. 4, ibid., for "wakf" (w.e.f. 1-11-2013). 7. Subs. by Act 27 of 2013, s. 4, for "wakf" (w.e.f. 1-11-2013).

Title: Power of Chief Executive Officer to direct banks or other person to make payments

Description: (1) Notwithstanding anything contained in any other law for the time being in force, the Chief Executive Officer, if he is satisfied that it is necessary and expedient so to do, make an order directing any bank in which, or any person with whom any money belonging to a 1[waqf] is deposited, to pay the contribution, leviable under section 72, out of such money, as may be standing to the credit of the 1[waqf] in such bank or may be deposited with such person, or out of the moneys which may, from time to time, be received by bank or other person for or on behalf of the 1[waqf] by way of deposit, and on receipt of such orders, the bank or the other person, as the case may be, shall, when no appeal has been preferred under sub-section (3), comply with such orders, or where an appeal has been preferred under sub-section (3), shall comply, with the orders made by the Tribunal on such appeal. (2) Every payment made by a bank or other person in pursuance of any order made under sub-section (1), shall operate as a full discharge of the liability of such bank or other person in relation to the sum so paid. (3) Any bank or other person who is ordered under sub-section (1) to make any payment may, within thirty days from the date of the order, prefer an appeal against such order to the Tribunal and the decision of the Tribunal on such appeal shall be final. (4) Every officer of the bank or other person who fails, without any reasonable excuse, to comply with the order made under sub-section (1) or, as the case may be, under sub-section (3), shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to eight thousand rupees, or with both. 1. Subs. by Act 27 of 2013, s. 4, for "wakf" (w.e.f. 1-11-2013).

Title: Deduction of contribution from perpetual annuity payable to the waqf

Description: 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 1under section 72 which remains unpaid, deduct before making payment of the perpetual annuity to the 2[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 2[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. 1. Subs. by Act 27 of 2013, s. 4, for "wakf" (w.e.f. 1-11-2013). 2. Subs. by Act 27 of 2013, s. 4, for "wakf" (w.e.f. 1-11-2013).

CHAPTER 6 MAINTENANCE OF ACCOUNTS OF AUQAF