UP Wakf Board Note (Extracts)

There has been unprecedented rise in the market value of land and buildings. A large number of shops and buildings dedicated for religious and charitable purposes including Wakf properties which have been in the occupation of tenants for a long time on nominal rent ..

The Mutawallis of the Wakf are not in a position to demand higher rent from the tenants because of the provisions of the Rent Control Act. It is, therefore, vital to ensure that the income from such Wakf properties increase in proportion tot he general rise in the market value of land and buildings ... After defraying expenditure on account of payment of municipal dues etc. practically nothing is left to meet the expenditure on their repair, upkeep and maintenance. Since labour charges and cost of building materials have gone up manifold ..

Moreover there is great disparity between the rentals of endowed properties and those of other similar private properties in the same neighbourhood whose rent could be substantially increased under the Rent Control Act ... The developrent of the Wakf properties becomes difficult owing to lack of financial resources, as also because of the limitation imposed on the lese, mortgage and sale of Wakf properties. In the circumstances a rise in the rental income of the buildings belonging to Wakfs in keeping with prevalent market rates is the only possible solution of raising the income of the Wakfs to enable the. Mutawallis' to adequately maintain the Wakf buildings and also to carry out the charitable purposes of the Wakf.

In December 1960, the Government of India convened an Inter-State Conference at which it was suggested that Wakf properties should be exempted from the application of the Rent Control Act of the various State Governments. In support of the above suggestion, it was felt that the religious and charitable institutions of all communities had been suffering from neglect and misuse for a long time.

The All India Wakf Boards' Conference held at Bhopal in April-May, 1983 had also strongly recommended that Central Government be requested to direct the State Governments, in which exemption has not so far been granted, to exempt all Wakf properties from the purview of the State Rent Control Acts ....

It was on the recommendations of the Government of India that Andhra Pradesh Government and Punjab' Government exempted the buildings, godowns etc. belonging to the religious and charitable institutions in the States from the operation of their Rent Control Acts.

Likewise a number of other State Governments has lready amended their respective Rent Control Acts so as to exempt a class of houses from the provisions of their Rent Control Acts. The position in relation to Rent Control Acts of such State Governments is summarised below:

The Mysore House Rent and Accommodation Control Act 1951 (Section 20)

Notwithstanding anything contained in this Act, the State Government, may, be notification in the Mysore Gazette exempt any house or class of houses from all or  any provisions of this Act.

The Orissa House Rent Control Act, 1958 (Section 17)

(2) The State Government may, by notification, exempt any other house or class of houses from all or any of the provisions of this Act.

The Madhya Pradesh Accommodation Control Act, 1955 (Section [3])

The Government may, by notification in the Gazette, exempt from all or any of the provisions of this Act any accommodation which is owned by any educational, religious or any or charitable institution or by any nursing or maternity home, the whole of the income derived from which is utilised for that institution or nursing home or maternity home.

The East Punjab Urban Rent Restriction Act, 1949 (Section 3)

The State Government may direct that all or any of the provisions of this Act shall not apply to any particular building or rented land or any class of buildings or rented land.

The Rajasthan Premises (Control) of Rent and Eviction Act

Section 2C and 2D exempted places of Public Endowments or sport and certain premises belonging to local authorities from the application of the Act.

UP: Ordinance of 1977 Withdrawn

Proposals for the exemption of the Wakf property from the purview of the UP Rent Control Act have been under consideration of the State Government for over two decades.

... What is needed is to add a clause in the Rent Control Act to confer authority upon the State Government on the lines of the Mysore, Orissa, M.P. Punjab and similar other State Government Rent Control Acts to exempt a class of houses from all or any provisions of the UP Rent Control Act ... In 1977 an Ordinance was promulgated whereby buildings belonging or vested in public and religious institutions were exempted from the operation of the UP Rent Control Act on the analogy of the buildings of Government, local authority or building in a public sector: But within a month of its promulgation this Ordinance was withdrawn, presumably on the ground that there would be large scale uprooting of the tenants occupying Wakf premises. There was absolutely no intention to have the Wakf premises vacated from the existing tenants. Later on in 1982 this question came for the consideration of State Government again but the proposal did not make any progress for one reason or the other. The apprehension that the tenants of the Wakf properties might be ejected ... in large numbers is unsound for the obvious reason that charitable institutions cannot afford ... to indulge in protracted litigation ... What is needed is that the houses or shops belonging to religious and charitable institutions should carry rent which is fair and compares favourably with the market rent prevailing in respect of similar houses or shops in any locality ...