Transfer of property

How to give waqf property on lease in India

“leased premises” means the land or the building leased out by the lessor to lessee;

“lease”, “lessor” and “lessee” shall have the same meaning as assigned to them under the Transfer of Property Act, 1882 (4 of 1882);

3. Restriction on grant of lease in certain cases

(1) No mutawalli or Board shall give on lease any mosque, dargah, khanqah, graveyard or imambara:

Provided that no such restriction shall apply to the waqf land situated outside the main premises of a mosque, dargah, khanqah, graveyard or imambara;

Provided further that any graveyard given on lease before the commencement of the Waqf (Amendment) Act, 2013, in the States of Punjab, Haryana, Himachal Pradesh and Chandigarh may be continued in accordance with the provisions of these rules.

4. Procedure as to short duration lease of less than one year

(1) A mutawalli or Board may give on lease waqf property, for any period of less than one year, on such terms and conditions as agreed upon by the parties.

(2) The mutawalli or Board shall invite applications from persons desiring to take the property on lease under sub-rule (1) by publishing a notice in the surrounding vicinity, distributing leaflets, pamphlets or beating of drums and pasting the said notice on any conspicuous place like mosque or any other public place.

(3) The mutawalli or Board shall execute the lease of the property in favour of a person or organization or society offering to pay higher lease rent.

(4) The mutawalli, Board or any member of the managing committee of a waqf, including their spouse, parents, children, brothers, sisters, spouses of brothers and sisters or children of brothers and sisters, shall not be eligible to apply for lease under this rule.

5. Procedure for lease other than short duration lease

 Save as provided in rule 4 above relating to short duration lease, the mutawali or Board, as the case may be, shall in all cases where lease of waqf property is required to be given for a period of more than one year but not exceeding thirty years, publish the invitation of bids in at least one leading national (Hindi, Urdu or English) newspaper and one regional or local newspaper containing the following details, namely :-

(i) exact area or description and location of the waqf property;

(ii) the purpose or object for which the property is required to be leased;

(iii) the period for which the property is required to be leased;

(iv) the minimum reserve price per square feet:

Provided that no such advertisement in newspaper shall be required for lease of waqf property whose lease rental income is up to Rs. 3000/- (Rupees Three Thousand) per month as on 3rd June 2014 and the mutawalli or Board shall invite applications from persons desiring to take the property on lease and execute the lease by following the procedure specified in sub-rules (2) and (3) of rule 4:

Provided further that the mutawalli, Board or any member of the managing committee of a waqf, including their spouse, parents, children, brothers, sisters, spouses of brothers and sisters or children of brothers and sisters, shall not be eligible to apply for lease under this rule.

6. Invitation of bid for lease

 Competitive bids shall be invited in all cases in which the rental income from the leased property in which the assessed rental income from the leased property is more than Rs. 3000/- (Rupees Three Thousand) per month as on 3rd June, 2014 and the waqf property shall be leased out to the highest bidder:

Provided that the bid shall in no case be less than the reserve price referred to in rule 7.

7. Reserve Price

 (1) The reserve price per square feet for lease of an immovable waqf property shall –

(a) for hospitals, educational institutions and social sectors, be not less than 1% per annum;

(b) for commercial activities, be not less than 2.5% per annum;

of the market value of the property:

Provided that the Board may in cases where the bid fails twice and on the recommendation of a Committee to be formed for the purpose, reduce the reserve price for a locality, if the same is approved by two thirds members of the board present and voting.

Provided further that the reserve price upon such reduction shall in no case be lower than 1.5% of the market value.

(2) The market value referred to in sub-rule (1) shall be the price fixed for registering a conveyance at the office of the Registrar or Sub-registrar.

8. Payment of security deposit

(1) Upon the execution of lease, the lessee shall make payment of a security deposit of the amount based on the period of lease, as under, namely : –

(i) one month lease rent on lease period of up to one year ;

(ii) three months lease rent on lease period of more than one year and up to five years ;

(iii) six months lease rent on lease period of more than five years and up to ten years; and

(iv) twelve months lease rent on lease period of more than ten years and up to thirty years.

(2) The security deposit received under sub-rule (1) shall be kept in fixed deposit in an account of the Waqf Board in a nationalised Bank and the Board may utilise the amount for development of waqf properties, with the sanction of not less than two-thirds of the members of the Board.

(3) The waqf property under lease shall be maintained by the lessee.

(4) The security deposit shall be refunded without any interest to the lessees within one month of handing over of vacant premises or land in good condition to the satisfaction of the Waqf Board after adjustment of dues or damages, if any, caused to the Waqf premises.

9. Registration of lease

 (1) A lease of waqf property for any period exceeding one year and up to thirty years shall be registered at the office of Registrar or Sub-registrar under whose jurisdiction the property is situated.

(2) The expenses towards registration of lease under sub-rule (1) shall be borne by the lessee.

10. Lease rent

(1) The lessee shall pay to the lessor for the leased premises lease rent, in respect of each year of the term or renewal terms, as the case may be, payable in advance and without notice or demand, in monthly or annual instalments as agreed upon between the parties, from the date of execution of the lease agreement, preferably only in the account of the lessor in nationalised bank.

(2) The lease rent tendered by the lessee on time by way of money order for amount not exceeding rupees three thousand only , if refused by the lessor in accepting or giving receipt, may be deposited in the account of the concerned lessor in nationalised bank and the Lease rent shall be treated as validly deposited if deposited by the lessee within fifteen days of such refusal by the lessor.

Provided that a valid lease agreement between the parties on the date of making such deposit has not been cancelled, expired or lost validity, for some other reasons.

11. Increase of lease rent per annum

 Every lease agreement shall contain a clause to the effect that there shall be an increase of lease rent every year by an amount of not less than 5% on the existing lease rent.

12. Payment and recovery of lease rent

 (1) All amounts payable by the lessee to the lessor pursuant to the lease of waqf property shall be deemed to be lease rent and be recoverable as lease rent by the lessor who shall have all rights against the lessee for default in any payment thereof.

(2) Lease rent shall be paid to the lessor without deduction or set-off, at the address of the lessor or to such other person or at such other address, as the lessor may from time to time, designate in writing.

(3) If the lessee continues to occupy the premises after the expiration or earlier termination of the lease, the lessee shall, subject to final orders passed in any proceedings, pay double lease rent for the period of such unauthorised occupation.

17. Grant of long term lease of upto thirty years in certain cases

(1) A Lease of any immovable waqf property exceeding the period of three years and extending up to thirty years may be granted for the purposes of carrying out any commercial activity, education or health purposes, with the approval of the State Government and if the State Government fails to grant permission within forty-five days, the permission shall be deemed to be granted.

(2) The sanction for grant of lease under sub-rule (1) shall be given by the Board in accordance with the procedure contained in clause (j) of sub-section (2) of Section 32 of the Act.

25. Notice

Any notice under these rules shall be given in writing and sent by registered mail or by speed post or e mail and delivered to the lessee at his address; or to the lessee, personally or at the leased premises.


Refer: Waqf Properties Lease Rules, 2014 and Section 56 of the Waqf Act, 1995 and Transfer of Property Act, 1882

Categories: Transfer of property

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