On amendments to the Waqf Act

Context:

• On August 8, the Union government introduced a Bill in the Lok Sabha to amend the 1995 Waqf Act.
• The proposed amendments seek to significantly reform the law by enhancing the Centre’s regulatory authority over waqf properties and, for the first time, permitting the inclusion of non-Muslim members in Waqf Boards.

News:

• After its introduction in Parliament, the Bill was referred to a joint parliamentary panel for further scrutiny after the Congress-led INDIA bloc opposed the proposed law in its present form.

Introduction:

• The draft legislation, proposed to be renamed the Unified Waqf Management, Empowerment, Efficiency, and Development Act, 2024, is heralded by the government as a comprehensive overhaul aimed at enhancing “the efficiency of the administration and management of the waqf properties.”
• However, several Opposition parties have accused the Centre of floating the Bill without adequate consultation with stakeholders, claiming it encroaches upon the Muslim community’s religious rights.

India’s waqf law:

• Waqf: In Islamic law, waqf refers to property dedicated in the name of God for religious and charitable purposes.
• This can include any movable or immovable property set aside for the public good, embodying an act of piety that allows Muslims to extend their charitable deeds beyond their lifetime.
• Establishment: A waqf can be established through a formal deed or instrument, or a property can be deemed waqf if it has been used for religious or charitable purposes over an extended period.
• Proceeds: The proceeds from such properties are typically used to maintain mosques, fund schools or provide for the poor.
• However, once designated as waqf, the property cannot be transferred through inheritance, sold, or given away.
• Non-Muslim: A non-Muslim is also allowed to create a waqf as long as the objective of creating it aligns with Islamic principles.
• In India, waqfs are regulated by the 1995 Act.
• Waqf properties are identified and delineated through a survey conducted by the State government.
• Survey Commissioner: A survey commissioner, appointed under the Act, identifies these properties through local investigations, witness testimonies, and review of public documents.
• Once identified, the properties are recorded in the State’s official gazette, and a list is maintained by the State Waqf Board.
• Mutawalli: Each waqf is managed by a mutawalli (custodian) who oversees its administration.
• While similar to a trust established under the Indian Trusts Act of 1882, a waqf, unlike a trust, cannot be dissolved by a Board.

Role of the waqf board:

• The 1995 Act establishes Waqf Boards in each State to oversee the administration of waqf properties within their jurisdiction.
• These Boards are considered juristic persons, allowing them to sue or be sued in a court of law.
• Composition: Each State Waqf Board has a chairperson and includes one or two nominees from the State government, Muslim legislators, recognised Islamic scholars, and mutawalli of the waqfs.
• Chief Executive Officer: The Act also mandates the appointment of a full-time Chief Executive Officer for each Board, who must be a Muslim by faith and hold at least the rank of Deputy Secretary in the State government.
• Functions: The Waqf Board is authorised to manage waqf properties and take measures to recover lost assets.
• It can also sanction the transfer of immovable waqf property through sale, gift, mortgage, exchange, or lease. However, this would require the approval of at least two-thirds of the Board members.
• 2013 Amendment: Amendments to the 1995 Act in 2013 made the sale of waqf properties nearly impossible, as neither the mutawalli nor the Board had the right to sell a waqf property.
• Central Waqf Council: In addition to the State Waqf Boards, the legislation also establishes the Central Waqf Council, a national advisory body under the Ministry of Minority Affairs.
• The Council ensures the uniform administration of waqf properties across the country and is headed by the Union Minister of Minority Affairs.
• It also advises the Union government on waqf-related issues, including policy development, implementation of waqf laws, and resolution of inter-State disputes.

Key changes in the proposed law:

• Definition: The definition of ‘waqf’ has been altered.
• Now, under the Bill, only lawful property owners who have practised Islam for at least five years are authorised to create ‘waqf’ properties through the execution of formal deeds.
• Waqf by use: This revision abolishes the ‘waqf by use’ concept, which permits a property to be considered waqf based on usage, even if the original deed was disputed.
• Traditionally, waqf properties were often dedicated orally until formal documentation became standard practice.
• Government property: To prevent any fraudulent waqf claims, the Bill states, “Any government property identified or declared as waqf property, before or after the commencement of this Act, shall not be recognised as waqf property.”
• Beneficiaries: The law permits widows, divorced women, and orphans to be beneficiaries of proceeds from waqf assets.
• Surveying: Under the new Bill, the responsibility of surveying waqf properties, previously managed by survey commissioners under the 1995 Act, will now be assigned to district collectors or officers of equivalent rank.
• Centralised registration system: To improve the accuracy of waqf property records, the Bill proposes a centralised registration system.
• All information about waqf properties must be uploaded to this portal within six months of the new law’s enactment.
• Any new waqf property registrations must be submitted exclusively through this portal to the Waqf Boards.
• Waqf tribunal: The Bill omits section 40, which previously granted waqf tribunals the authority to determine whether a property qualifies as waqf.
• Instead, it designates the district collector as the final arbiter in such matters.
• Once a determination is made, the collector must update the revenue records and submit a report to the State government.
• Disputed property: The Bill makes it clear that the disputed property cannot be treated as a waqf property till the collector submits his final report.
• This implies that until the government decides the issue, a Waqf Board cannot be in control of the disputed land.
• Inclusion of non-Muslims: One of the most contentious aspects of the Bill is the proposed inclusion of non-Muslims in key waqf institutions, the Central Waqf Council, State Waqf Boards, and waqf tribunals.
• It empowers the Centre to appoint three Members of Parliament (two from the Lok Sabha and one from the Rajya Sabha) to the Central Waqf Council without specifying that they have to be Muslims.
• Under the 1995 Act, the three MPs to be included in the Council had to be from the Muslim community.
• As per the new Bill, State Waqf Boards have to include two non-Muslims and two women as members.
• Composition of waqf tribunals: The composition of waqf tribunals has been changed from a three-member body to a two-member body.
• The tribunal will now consist of a district judge and an officer of joint secretary rank to the State government.
• Time bound resolving of disputes: Under the proposed law, tribunals must resolve disputes within six months, with a possible extension of six months.
• Auditing: The Bill empowers the Centre to “direct the audit of any waqf at any time by an auditor appointed by the Comptroller and Auditor-General of India, or by any officer designated by the Central Government for that purpose.”
• The Waqf Boards are required to audit their accounts annually, selecting auditors from a panel constituted by the State governments.
• Penalties will also be levelled upon mutawallis if they fail to maintain proper accounts.
• Courts’ intervention: The proposed law allows courts to intervene in waqf disputes.
• It removes the finality of decisions made by waqf tribunals, allowing aggrieved parties to appeal directly to the concerned High Court.
• This is aimed at increasing judicial oversight and curbing instances of arbitrary exercise of power by Waqf Boards or tribunals.

Potential implications:

• While the amendments are a positive step, it is crucial to implement measures that adequately protect waqf properties without infringing upon the freedom of religion guaranteed under Article 25 of the Constitution.
• Rights vested in waqf properties hundreds of years ago cannot be taken over by executive officers without fair judicial determination.
• Increased centralisation of waqf property management might undermine the autonomy of Muslim religious institutions.

Hindenburg report on SEBI chief raises political storm

Context:

• The U.S.-based short seller had said that the chief of India’s stock market regulator, in charge of probing allegations against the Adani group of companies, herself had a stake in offshore entities of Adani group.

Securities and Exchange Board of India (SEBI):

• It is the regulatory authority for securities and commodity markets in India.

Establishment of SEBI:

• SEBI was constituted as a non-statutory body in 1988 through a resolution of the Government of India.
• It was established as a statutory body in the year 1992 through the provisions of the Securities and Exchange Board of India Act, 1992.

Preamble:

• The Preamble of the SEBI describes the basic functions of the SEBI as “…to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto”.

Regulatory authority:

• SEBI’s regulatory authority extends to various segments of the financial market, including stock exchanges, mutual funds, portfolio managers, investment advisers, and other intermediaries.
• It plays a pivotal role in monitoring and regulating market activities, ensuring compliance with regulations, and taking corrective measures in case of any violations.

Objectives of SEBI:

• Investor protection: SEBI’s foremost objective is to safeguard the interests of investors in the securities market.
• It seeks to ensure that investors receive accurate and timely information about the securities they invest in and are protected from fraudulent and unfair trade practices.
• Regulation and development of the securities market: SEBI is entrusted with the responsibility of regulating and developing the securities market.
• It formulates regulations and guidelines that govern various market participants, such as stock exchanges, brokers, and listed companies, to promote fair and transparent practices.
• Prevention of insider trading: SEBI works towards preventing insider trading, a practice where individuals with access to non-public information use it to gain an unfair advantage in trading.
• SEBI’s regulations on insider trading aim to maintain a level playing field for all market participants.
• Promotion of fair practices and code of conduct: SEBI promotes fair practices and a high standard of integrity in the securities market.
• It enforces a code of conduct for all market participants, fostering an environment where market activities are conducted ethically and transparently.
• Prohibition of fraudulent and unfair trade practices: SEBI is empowered to act against fraudulent and unfair trade practices in the securities market.
• It investigates and takes corrective measures to maintain market integrity and protect investors from market manipulations.
• Development of a secondary market: SEBI plays a crucial role in the development of the secondary market by introducing reforms and initiatives to enhance liquidity, transparency, and efficiency in trading.
• It works towards creating an environment conducive to the growth of the capital market.

Functions of SEBI:

• The SEBI performs a multitude of functions to achieve its overarching objectives of investor protection, market regulation, and the development of the securities market. The key functions include:
• Safeguarding the interests of Indian investors in the securities market.
• Encouraging the growth and efficient functioning of the securities market.
• Regulating business activities within the securities market.
• Providing a platform for market participants such as portfolio managers, stockbrokers, and investment advisers.
• Supervising the activities of depositors, credit rating agencies, custodians of securities, foreign investors, and other market entities.
• Educating investors about the securities markets and their intermediaries.
• Preventing fraudulent and unfair practices in the securities market.
• Overseeing company takeovers and share acquisitions.
• Ensuring the securities market remains efficient and current through research and development.

Powers of SEBI:

• SEBI wields a spectrum of powers that allow it to function effectively as a regulatory authority.
• These powers can be categorised into three broad classifications: quasi-judicial, quasi-executive, and quasi-legislative.
• Quasi-judicial powers:
• Adjudication authority:
• SEBI possesses quasi-judicial powers, allowing it to adjudicate on matters related to securities law violations.
• It has the authority to conduct hearings, examine evidence, and pass orders, ensuring a fair and impartial resolution of disputes within the securities market.
• Settlement proceedings:
• SEBI has the power to facilitate settlement proceedings between parties involved in disputes.
• Through consent orders, SEBI can bring about resolution and enforce compliance without resorting to prolonged legal processes.
• Quasi-executive powers:
• Enforcement and implementation:
• SEBI is vested with quasi-executive powers, enabling it to enforce compliance with securities laws and regulations.
• The regulatory body can take actions such as imposing fines, penalties, and other measures to ensure market participants adhere to prescribed standards.
• Conducting investigations:
• SEBI has the authority to conduct investigations into potential violations of securities laws.
• This quasi-executive power allows SEBI to gather information, inspect records, and take corrective measures to maintain market integrity.
• Quasi-legislative powers:
• Rule-making authority:
• SEBI possesses quasi-legislative powers, allowing it to formulate and promulgate rules and regulations for the securities market.
• This authority enables SEBI to adapt to changing market dynamics and enact measures that foster fair, transparent, and efficient market practices.
• Policy formulation:
• SEBI has the power to formulate policies that guide the development and regulation of the securities market.
• This quasi-legislative role positions SEBI as a dynamic institution capable of responding to emerging challenges and opportunities in the financial landscape.

Organisational structure of SEBI:

• The regulatory body is managed by its members, which consist of the following:
• The chairman is nominated by the Union Government of India.
• Two members from the Union Finance Ministry.
• One member from the Reserve Bank of India.
• The remaining five members are nominated by the Union Government of India.
• SEBI has its headquarters in Mumbai.

Code on Conflict of Interests for Members of Board:

• This Code has been adopted by the Board in its meeting held in December, 2008 to ensure  that  it  conducts  in  a  manner  that  does  not compromise  its  ability  to accomplish its mandate or undermine the public confidence in the ability of Member(s) to discharge his responsibilities.
• General principles:
• A Member shall take all steps necessary to ensure that any conflict of interests to which he may be subject to does not affect any decision of the Board.
• A Member shall disclose his interests which may conflict with his duties.
• A Member  shall  not  exploit  to  his  personal  advantage,  any  personal  or professional  relationship  with  regulated  entities  or  any  employee  of  such entities.
• Transactions in shares: A Member shall disclose his holding of shares and holdings of shares of his family within 15 days of the assumption of Office.
• A Member shall disclose his holding of shares and holdings of shares of his family at  the  end  of  each  financial  year  within  15  days  of  the  close  of  the financial year.
• Members not to hear or decide in certain cases: No Member shall hear or decide any matter where he has a conflict of interest.

Conclusion:

• SEBI’s unique and innovative approach to its functions and powers reflects its commitment not only to meet current regulatory needs but also to anticipate and address future challenges in the dynamic world of securities trading.

Zelenskyy admits to Kyiv’s new offensive against Russia

Context:

• President Volodymyr Zelenskyy acknowledged for the first time that Ukrainian forces were fighting in the surprise offensive in Russia’s Kursk, as attacks on the border region continued with authorities rushing to evacuate people.

Kursk Oblast:

• It is a federal subject of Russia (an oblast).
• Its administrative center is the city of Kursk.
• Slavic tribes of the Severians inhabited the area.
• Rivers: Kursk Oblast contributes to two major drainage areas: the Dnieper River and the Don River.
• International border: Sumy Oblast of Ukraine (West)
• In August 2024, Ukrainian forces crossed the border into Kursk Oblast during the Russian invasion of Ukraine.
• On 9 August 2024, a convoy of Russian troops in the Kursk Oblast was destroyed in a strike by U.S.-supplied HIMARS rocket system.

UN Agency for Palestinians:

Context:

• Gazans trapped, nowhere to go, says UN Agency for Palestinians

United Nations Relief and Works Agency for Palestine Refugees (UNRWA):

• Mandate: It is mandated by the UN General Assembly to serve ‘Palestine refugees’.
• In addition to Palestine refugees, the UN General Assembly has also mandated UNRWA to offer services to certain other persons who require humanitarian assistance, on an emergency basis as and when required, in UNRWA fields of operations.
• Establishment: In 1949, the UN General Assembly established two different UN refugee agencies – the UN Office of the High Commissioner for Refugees (UNHCR) and the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) to respond to distinct refugee crises.
• Geographical extent of services: It provides assistance and protection to Palestine refugees in Jordan, Lebanon, Syria, the Gaza Strip and the West Bank, including East Jerusalem.
• UNGA: Only the UN General Assembly can change the mandate of UNRWA, the definition of a Palestine refugee and whom the Agency is mandated to serve.
• UNHCR Vs. UNRWA: Unlike UNHCR, UNRWA does not have a mandate to resettle Palestine refugees and has no authority to seek lasting durable solutions for refugees.
• UNRWA is a humanitarian organisation and, unlike UNHCR, has no authority to seek durable solutions for refugees that fall under its mandate (i.e. Palestine refugees), including return to the country of origin.
• 1951 Geneva Convention: It is important to note that registration with UNRWA does not afford refugee status under the 1951 Geneva Convention.
• Refugee camps: UNRWA does not administer the camps.
• The Agency’s responsibility is limited to running education, health, relief and social services, microfinance and emergency assistance programmes, which are located inside and outside camps.
• UNRWA does not manage refugee camps and is not responsible for protecting the physical safety or security of Palestine refugees or maintaining law and order in the five fields of UNRWA operations.
• The Agency cannot guarantee any individual’s physical security. Ensuring the physical security of Palestine refugees residing in any of UNRWA’s five fields is the responsibility of the respective host state or authority.
• The Agency is not responsible for security or law and order in refugee camps and has no police force or intelligence service.
• Note: UNHCR does not have a mandate over Palestine refugees within the UNRWA fields of operations (Lebanon, Jordan, Syria, West Bank, including East Jerusalem, and the Gaza Strip).
• However, UNHCR has a mandate regarding Palestine refugees when they are outside the UNRWA areas of operations in certain circumstances.
• Humanitarian services: UNRWA human development and humanitarian services encompass primary and vocational education, primary health care, relief and social services, infrastructure and camp improvement, microfinance and emergency response, including in situations of armed conflict.
• Funding: It is funded almost entirely by voluntary contributions from UN Member States.
• It also receives some funding from the Regular Budget of the United Nations, which is used mostly for international staffing costs.