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LOANS
CENTRAL WAKF COUNCIL TERMS AND CONDITIONS
FOR RELEASE OF LOANS FOR THE DEVELOPMENT OF
URBAN WAKF PROPERTIES, 1987
The Central Wakf Council hereby makes the following Terms and Conditions for the administration and|regulation of loans given by the Central Wakf Council for the development of Urban Wakf Properties :-
SHORT TITLE AND EXTENT 1.
(a) These terms and Conditions may be called "the Central Wakf Council
Terms and Conditions for release of loans for the Development of Urban
Wakf Properties, 1987."
(b) They shall extend to all areas to which the Wakf Act, 1995 applies,
and also to such other areas where state Wakf Acts and Charitable Trust
Acts are applicable and to such other Areas as are approved by the Council.
(c) They Shall Come into force at once on being adopted by the Central
Wakf Council.
DEFINITION 2.
In these Terms and Conditions, unless the context otherwise requires.
(a) "Act" means the Wakf Act, 1995;
(b) "Committee" means the Wakf Development Committee of the Central
Wakf Council;
(c) "Chairman" means the Chairman of the Central Wakf Council;
(d) "Donation" means a sum of money paid by a loanee State Wakf
or the Mutawalli of a Wakf to the Central Wakf Council from time to
time.
(e) "Form" means a form appended with these Terms & Conditions.
(f) "Government" means the Central Government.
(g) "Loan" means a loan granted by the Council to a State Wakf
Board or to the Mutawalli of a Wakf for the development of any specific
Urban Wakf Property;
(h) "Secretary" means the Secretary of the Council;
(i) "Urban Wakf Property" means a property situated in any area
which is comprised within the jurisdiction of a Municipality (Whether
known as Municipality, Municipal Corporation, Notified area Committee,
Town area Committee, Town Committee or by any other name) Cantonment
Board and included any area with in such distance not being more than
8 kilometers from the local limits of any Municipality or Cantonment
Board as the Central/State Government may, having regard to the extent
or scope for urbanization of that area and other relevant consideration,
specify in this behalf by notification in the Official Gazette.
OBJECT OF LOAN 3.
Subject to the terms and conditions herein after laid down, the Council
may grant loans to a State Wakf Board and /or to the Mutawalli of a
Wakf for the purpose of development of Urban Wakf Properties.
ELIGIBILITY AND QUANTUM OF LOAN 4.
(1) An unregistered Wakf or a Wakf which is indebted or which is not
in full possession of the property to be developed, or a Wakf which
is, in the opinion of the Council, insolvent or otherwise unsuitable,
shall not be eligible to a loan.
(2) The loan may be granted under these Terms and Conditions upto 75%
of the estimated cost of the project, excluding the value of the land,
subject to a maximum of Rs.10.00 lakhs in each case in any one year.
(a) Provided that the loan may also be granted in excess of 75% of the
estimated cost of the project in special circumstances.
(b) Provided further that a loan in excess of the limit of Rs.10.00
lakhs in each case in any year may also be granted, if the chairman
feels that the project will be completed earlier with more financial
assistance.
(3) The loan shall be granted for the construction of new building or
extension of existing building or for other developmental projects on
Wakf Properties for the purpose of augmenting the resource of the Wakf
concerned and better realization of its objects.
MODE OF APPLICATION 5.
(1) Every Mutawalli of a Wakf or the Wakf Board requiring a loan shall
submit the scheme of development of a Wakf Property through an application
as shown in Form I of these Terms and Conditions in Duplicate, and shall
enclose therewith the following documents. (In case these are in Regional
Language its English translation should be enclosed.
(a) Site plan of the land to be developed, indicating boundaries. (i)
Detailed plan of construction prepared by a qualified Engineer/Architect,
duly sanctioned by the Municipal or any competent authority having jurisdiction
in the area where the property to be developed is situated. (ii) In
the case of other developmental projects a detailed plan prepared by
an expert.
(b) A project report in a narrative form indicating the brief history
of the Wakf, the aim/objective of the development, the details of the
proposed scheme alongwith the estimated
(c) Cost of it and anticipated income and its utility.
(d) A detailed item wise estimate of cost duly prepared by an Engineer
or an expert as the case may be.
(e) A detailed statement showing the profitability of the scheme.
(f) A statement of the market value of the Wakf Property by an approved
valuer
(g) Copies of the documents to establish the title of the borrower to
the management of the property.
(h) A non-encumbrance certificate from the competent authority or the
State Wakf Board.
(2) The application of the Mutawalli of a Wakf shall be submitted to
the Council through the concerned State Wakf Board. The Secretary Wakf
Board shall ensure onward submission of the application with connected
documents alongwith the following: -
(a) A copy of the resolution of the Board approving the scheme and of
permitting, if necessary, the mortgage of the property under section
51(1) of the Act or recommending specific guarantee for the loans.
(b) Permission of the State Government under section 75(1) of the Act
to borrow loan if the borrower or Co-borrower is the Board.
EXAMINATION OF THE SCHEME BY WAKF
DEVELOPMENT COMMITTEE 6.
The Wakf Development Committee of the Council shall examine all such
applications with a view to ascertaining that they are viable, profitable
and suitable and then give its recommendation on each scheme to the
Chairman.
APPROVAL OF THE SCHEME 7.
(1) On approval of a scheme by the Chairman, the loan may be sanctioned
in the name of the Mutawalli or the Wakf Board concerned and the amount
of the loan sanctioned may be paid either in lump sum or in instalment.
(2) Before the loan amount is advanced, the Mutawalli and/or the Board
concerned will jointly sign an agreement with the Council on the terms
and conditions of the loan for execution of the project for which loan
is granted, in the form as shown in Form II.
(3) (a) Deposit with the Council the title deeds of the property which
is to be developed or of other immovable property i.e., belonging to
the Wakf or the Board with an undertaking signed on form as shown in
Form -III.
(b) Furnish a guarantee by the State Govt. or a nationalized or subsidiary
Bank or a State Wakf Board.
(c) Mortgage immovable property by executing a registered mortgage deed
on form as shown in Form-IV.
MODE OF PAYMENT 8.
Provided that in exceptional circumstances the chairman may decide to
accept any other manner of guarantee as is considered adequate in any
specific case.
(a) The loan amount will be paid through a crossed cheque to the account
of the Board concerned. (b) The Board shall deposit the amount of the
loan in the account of the project Development Committee when constituted
under condition 10 either in full or in part.
TERMS OF REPAYMENT OF LOAN 9.
(1) The loan shall be ordinarily repayable to the Council in Twenty
half-yearly instalments, the first of such instalment falling due on
the completion of two and half years after the date of release of the
loan.
(2) The loanee concerned shall as a measure or mutual regard for the
furtherance of the objectives of Wakfs in general pay a donation to
the Council not exceeding 6% per annum of the amount of loan outstanding
from time to time or at such other proportion as may be prescribed by
the Council, i.e., the first such instalment falling due on the completion
of two years after the date of the release, provided, however, that
the donation payable by the loanee concerned to the Council shall not
be chargeable for the first year.
(3) The Chairman may grant such moratorium in the payment of donation
also as he may deem necessary in the circumstances of any case.
(4) The Chairman may extend the time for the payment of instalment of
donation due if he considers it necessary in the circumstances on any
case.
(5) In case three consecutive instalments of repayment of the Principal
or two instalments of the amount of annual donation fall in arrears
the chairman may after giving notice to the borrowers to pay the due
instalment of principal amount and donation within a period of 30 days
of the date of receipt of such notice by the borrowers, declare that
the entire balance amount of the principal loan and the donation due
thereon has become repayable in one lump sum.
(6) After the expiry of the period of the final notice under sub-condition
5 above the Council may proceed to take action for the forecloser of
the mortgage or take such other action as it deems proposed for the
recovery of the outstanding amount of loan and the donation due thereon.
APPOINTMENT OF PROJECT DEVELOPMENT COMMITTEE 10.
(1) The Board with the approval of the State Government and under intimation
to the Council may appoint a Project Development Committee to control
and supervise the utilization of the loan advanced as per the plan.
(2) The Project Development Committee shall ordinarily consist of the
following : - (i) A nominee of the Wakf Board. (ii) A prominent Muslim
of the locality. (iii) Mutawalli of the Wakf concerned. (iv) Two experts
- one from the field of Architecture /Engineering and one from Finance/Administration.
(b) The meeting of the project Development Committee shall be presided
over by the Mutawalli of the Wakf concerned or in case the property
to be developed is under the direct management of the Wakf Board by
the Chairman of the Wakf Board or his nominee, as the case may be.
(3) The amount of loan granted by the Central Wakf Council for the scheme
shall be kept in a Bank account exclusively opened for this purpose
in the name of the Project Development Committee. The drawing and disbursing
authority would be jointly vested in two or more members of the Project
Development Committee none of whom would operate the account singly.
(4) The Board may replace any member of the Project Development Committee
with the approval of the State Government and under intimation to the
Council by nominating another in his place without assigning any reason
thereof.f
(5) The accounts of the Project Development Committee shall be audited
at the close of the month o March every year by a qualified auditor
or by a Chartered Accountant and a copy of the audited accounts shall
be furnished to the Board and the Council not later than 31st May of
every year.
(6) If any declaration of funds or wasteful expenditure is reported
by the auditor or comes otherwise to the notice of the Chairman, he
may take action as permitted under Sub-condition (5) and (6) of condition
9.
(7) The Chairman may at any time, if he think it necessary, order an
inspection of the account of the Project Development Committee or the
Board or both, and may depute any member or members of the Council or
its Secretary or any other competent person to carry out such inspection
or may direct the State Government to order such inspection.
(8) The Chairman may give such direction to the Project Development
Committee as may, in his opinion, be necessary for the proper utilization
of the funds, and such direction shall be deemed to be part of the agreement.
TRANSFER BY THE BORROWER 11.
Save as provided under condition 7 no Mutawalli or Board borrowing a
loan from the Council shall under any circumstances mortgage or otherwise
transfer the property, or any portion of it, being developed without
the prior permission of the Council.
TIME FOR COMPLETION 12.
(1) Every project for which a loan is advanced shall be completed within
such time as may be stipulated in each case.
(2) If the proposed project is not completed with the stipulated time,
the Chairman, may if he deems it justified, extend the period at his
discretion.
EXPLANATION For the purpose of this condition completion of Project
would mean utilization of the loan instalment of loan advanced i.e.,
Within three year from the date of release of the loan instalment.
(3) If no time is extended, or if the extended time has also expired
without the project being completed, the Chairman may impose a penalty
or payment of a sum of money not more than 6% per annum on the balance
of the loan or donation remaining unpaid. He may also initiate action
for the recovery of the loan as provided under sub-condition (5)
and (6) or condition 9. Provided the Chairman may exempt
any loanee from the levy of penalty or waive the penalty imposed if
necessary depending on the circumstances of the case.
IMPLEMENTATION OF THE SCHEME 13.
(1) The Project shall be implemented strictly in accordance with the
plans approved by a qualified Architect/Engineer/expert.
(2) No deviation from the approved plan shall be made without the prior
sanction of the Council. UTILISATION OF
ADDITIONAL INCOME ACCRUING FORM THE SCHEME 14.
(1) To ensure proper utilization of the additional income from the developed
wakf property, the Mutawalli in consultation with the Board or the Board
concerned as the case may be, shall prepare a scheme for such utilization
and submit it to the Council for approval.
(2) The scheme under sub-condition (1) above shall be based on the following
requirement: - i) The Mutawalli will continue to take for himself an
amount equal to average amount he was getting as income from the property
in the previous three years immediately before the date of the receipt
of the first loan from the Council. ii) The Council may further sanction
upto 10% of the additional income accruing from the developed property
for being utilized for the purposes for which the Wakf has originally
created. iii) The remaining additional income shall be spent after paying
taxes, contribution, maintenance and administration charges, depreciation
fund and audit fee, on such educational and social welfare activities
as may be conducive to the betterment of the community. (3) After the
scheme is approved by the Council it shall form the basis of the annual
budget of the Wakf concerned till the scheme is altered or revised with
the prior approval of the Council.
CREATION AND UTILISATION OF EDUCATIONAL FUND 15.
The donation of 6% per annum received by the Council from the loanee
shall be pooled together to constitute an Educational Fund, which shall
be a separate head of account under the Wakf Fund and shall be utilised
by the Council for educational purposes.
CREATION AND UTILISATION OF REVOLVING FUND 16.
The amount received by the Council, as repayment instalment of loan
shall form a Revolving Fund, which shall be accounted for under a separate
head of account under the Wakf Fund and shall be utilised for the development
of other Urban Wakf Properties.
OPERATION OF ACCOUNTS 17.
The Council may by a resolution authorize the Secretary of the Council
to operate the account of the Fund mentioned under condition 15 and
16 these terms and conditions.
REMOVAL OF DIFFICULTIES 18.
If any difficulty arises in giving effect to the provisions of these
Terms and Conditions, the Chairman, Central Wakf Council may by order
make such provision not inconsistent with the purposes of these Terms
and Conditions appear to him to be necessary or expedient for removing
the difficulty.
SAVING CLAUSE 19.
All actions taken with regard to release of development loans and their
recovering under the Draft Central Wakf Council (Development of Urban
Wakf Properties) Rules 1979, shall be deemed to have been taken in accordance
with these Terms and Conditions, as if these Terms were in force on
the day on which these action were taken.
Form - I Application Form
Form - II Loan Agreement
Form - III Memorandum of Deposit of Title Deed
Form - IV Mortgage Deed
Form - V Agreement of guarantee