The word ‘Waqf’ has its origin in the Arabic verb, ‘Waqafa’

meaning thereby ‘to detain’ or ‘to hold or to tie-up’. However, the

Islamic concept of the word ‘Waqf’ assumed a very significant
application to any property, moveable or immoveable, devoted in
the name of Allah the almighty for religious, pious or charitable
purpose and for the upliftment of the poorer sections of the
society.

The history of development of Muslim Waqf in India is spread

over a period of almost 800 years. The earliest description of waqf
in India is found in a rare book ‘Insha-i-Mahru’ written by Aynul-
Mulk Multani.

TAMILNADU WAQF BOARD:

The waqf Act 1954 came into force in the state of Tamilnadu on
15th day of January 1955 and the survey of Waqf and the
properties of Waqf were completed in the year 1957 and the first
Board was constituted in February 1958.

THE WAQF (AMENDMENT) ACT, 2013 (NO.27 OF 2013) :

The Act of Parliament which received the assent of the President

of India on the 20th September 2013 has come into force. The said
Act has been published in the Gazette of India Extraordinary part
II-Section I Dated 23.09.2013.

DETAILS OF TAMILNADU AUQAF:

There are 6960 Auqaf in all over Tamilnadu (as on February

2016), out of which 3793 relate to notified Auqaf. 3167 Auqaf has
been registered with the Tamilnadu Waqf Board (upto February
2016).

Total number of Auqaf - 6960

Notified Auqaf - 3793

Registered Auqaf - 3167

 Sl.No Institutions No.of
Auqafs
1. Mosque 3412
2. Dargah 1056
3. Arabic Madrasa 376
4. Ashurkhana 169
5. Kabarasthan 498
6. Idgah 137
7. Taika 293
8. Waqf-Al-Al-Aulad 245
9. Orphanages 251
10. Associations 77
11. Others 446
Total 6960

WAQF IN GENERAL:

Under strict Islamic law there is no much distinction between

public & private Waqf. Both of them have same characteristic
Properties vesting God Almighty & the Income applied for the
objects for the sake of convenience, Auqaf has been divided into
3 categories:-

1. Public Wakfs,
2. Quasi Public Wakfs &
3. Private by public Wakfs .

1. Public Wakfs means trust for public utility, which are

dedicated to public at large.
2. Quasi public wakfs it means those trusts the object of which
is
particularly to provide for a general pious purpose &
particularly to the benefit of a particular individuals or class
of individual. Which may be the settler’s family?
3. By private Auqaf means the trust primary object of which is
to make a provision for private individuals including Auqaf
 family or relatives. Modern writers have classified Wakfs as
public & private Wakfs.

The Wakf act 1954 & Wakf act 1995 deals only with wakf of public
nature & Waqf-Al-Al-Aulad for the benefit of the family to the
extent of which property is dedicated for any purpose
recognized by Muslim law as poise, religious or charitable.
The main limb of section 3 (r) of the of the principal Act (Waqf Act
1995) defines Auqaf as permanent dedication by a person
professing Islam of any movable or immovable property for
any purpose recognized by the Muslim law as pious religious
& charitable.

The term Wakf defined in clause (1) of section 3 of Wakf

Act 1954 show included any property given or endowed by any
person any religion other than Islam for support of 1. Mosque,
Idgah, Imamabad’s or Maqbaras, 2. Graveyard of persons
professing Islam and countries for Musafir Khana as for the
benefit of persons professing Islam. This madras Amendment
was taken only by the parliament which incorporates the
provisions of amendment wakf Act 1954 by introducing section
66(c) by Amendment Act 1964. The said section is now section
104of the principal Act (Waqf Act 1995). While deciding the
question whether it is wakf or trust following ingredients of wakf
as defined in the in the limb of section 3 (r):-

1. There must be dedication of property.

2. Dedication must be permanent.
3. Subject of dedication must be permanent.
4. The dedicator or settler must be a person belonging to the
Islamic faith capable to making dedication.
5. Object of dedication must be religious, pious, or charitable
recognized by Muslim law.

Management of the Mosque :

 When a Mosque is consecrated for public worship, it ceases
to be the property of the builder and vests in God. So all the
Muslims of the locality have got a right to check and participate in
the management of the Mosque.
Types of Waqf : Usually there are 3 types of Waqf recognized
as

a) Waqf by user
b) Mashrut-ul-khidmat
c) Waqf-Al-Al-Aulad

2. AUDIT OF THE ACCOUNTS OF WAQF INSTITUTIONS:

The audit of the accounts of the waqf institutions with an annual

income of not less than Rs.5000 (from 1967-68 to 1995-96) was
entrusted by the government to the Examiner of local fund
accounts, Madras in G.O.Ms.NO. 635, Revenue Department, dated
16th March 1968. The accounts of the Auqaf are audited annually
from the year 1967-1968.

The accounts of the Waqf having net annual income exceeding

Rs.15000 (from 1996-97 to 2012-13)shall be audited annually, or
at such other intervals as may be prescribed, by an auditor
appointed by the Board from out of the panel of auditors prepared
by the state government as per section 47 of the principal Act
(Waqf Act 1995).

The audit of the accounts of the waqf institutions with an annual

income exceeding Rs.50000 (from 2013-14 to till date) shall be
audited annually, or at such other intervals as may be prescribed,
by an auditor appointed by the board from out of the panel of
auditors prepared by the state government. The state
government may under intimation to the board at any time cause
the account of any waqf audited by the state Examiner of Local
funds or by any other officer designated for that purpose by the
state government (Section 47 of the Waqf(Amendment) Act,2013)

3. Scope of Audit:

The audit comprises of an examination of the accounts and

records maintained in the Auqaf by the muthawallis who
administer the Auqaf, to see that the income due from all sources
have been properly realized and brought to account and the funds
are realized and brought to account and the funds are utilized for
the objects for which they are created as laid down in the
Waqfnama containing the details of objects and the sources of
income and with particular reference to the Budget as approved
by the Tamilnadu state Waqf Board or the special officer for
Auqaf.

On taking up the audit, the Waqf Deed registered under section 36

of the Waqf (Amendment) Act, 2013 containing the details of
Waqf properties, annual income and details and objects of
expenditure should be studied carefully.

The regulations of the Waqf Board under sub-section(2) of section

110 of the principal Act (Waqf Act 1995) should be gone through
to see that they have been adhered to. The auditor should
acquaint himself with the principal Act (Waqf Act 1995) and the
Waqf (Amendment) Act, 2013(central Act 27 of 2013) and the
rules framed by the Government of Tamilnadu under section 109 of
the principal Act (Waqf Act 1995).

NOTE 1: Every Muthawalli of a Auqaf shall prepare and furnish to

the Board a full and true statement of Accounts before 1 st day of
July as per section 46(2) of the principal Act (Waqf Act 1995).
NOTE 2: If the administration of the Waqf is governed by a
scheme, a copy of the scheme would be called for to verify
whether any of the provisions of the scheme is violated under
section 69 of the principal Act (Waqf Act 1995).

NOTE 3: The accounts are now maintained for a financial year

with reference to the regulations under section 110(2) and section 46
of the principal Act (Waqf Act 1995).

NOTE 4: The Superintendents of all the Auqaf in the state shall

vest in the State Waqf Board and it shall be the duty of the Board
so as to exercise its powers under this Act to ensure that the
Auqaf under its superintendence are properly maintained,
controlled and administered and the income thereof is duly
applied to the objects of Waqf under Section 32 of the principal Act
(Waqf Act 1995).

4. ACCOUNTS AND BUDGET :

Every muthawalli of Auqaf shall in every year prepare a Budget in

respect of the financial year and shall be submitted atleast 30
days before the beginning of the financial year to the Board as
per section 44(2) of the principal Act (Waqf Act 1995).

The chief executive officer shall prepare a Budget for each of the
Auqaf under the direct management of the Board for its approval.
He shall keep regular accounts and be responsible for the proper
management of every Auqaf under the direct management of the
Board.

5.RECEIPTS :

The receipts comprises of the following items;

a) Receipts Ordinary
 b) Receipts Capital

a) Receipts Ordinary:
(i) Income from lands, market salt pans etc
(ii) Income from Buildings
(iii) Lease of usufructs of trees
(iv) Nazar (votive offerings)
(v) Hire charge of vessels
(vi) Holy Ramzan gruel cooking collections (vide: RC.12815 /A1-
A7/2015 Dated 19.02.2015 of WaqfBoard, Chennai)
(vii) Jummah prayer collections
(viii) Hundial collections
(ix) Interest on investments
(x) Lapsed deposit
(xi) Fees, fines and forfeitures
(xii) Income from remunerative enterprises
(xiii) Collections for kandhuri in kind and cash or bird sheep etc
(xiv) Government grants
(xv) Issuance of death certificate fees
(xvi) Collection of subscriptions
(xvii)Nikkah donation ,Mangni (Betrothal)donation and
Circumcision ceremony donation

Receipts Capital:

(i) Sale proceeds of immovable properties

(ii) Sale proceeds of movable properties
(iii) Loans obtained
(iv) Investments realized
(v) Loans recovered
(vi) Deposits and Advances
(vii) Compensations received from Government under Estates
Abolition Act in respect of zamindari and under tenure
estates.
6. RECEIPTS AUDIT CHECKS:

During audit of receipts, it should be seen whether

(i) All the lands and buildings as described in the registration

deed have been accounted for.
(ii) Income from all these items have been realized in the
manner prescribed in the rules and regulations and
(iii) The other items of revenue like donation, hundi
collections, hire charges of vessels etc, have been
properly accounted for without omission of any items and
without omitted any amount so collected.

Income from Immovable properties:

It can be broadly classified as follows

(i) Income from leases (cash and kind).

(ii) Departmental cultivation.
(iii) Land revenue.

It should be seen whether

(i) The lands and buildings have been leased out or managed
departmentally.
(ii) Rent should not be allowed to accumulate for more than
two months and legal steps should be taken to recover
the arrears or to evict the tenants (circular No.12 of
WaqfBoard, Dated 31.03.1963).
(iii) In respect of departmental cultivation, it should be seen
(i) Whether it is financially advantageous and the
expenditure is not disproportionate to the income
realized.
(ii) Whether proper cultivation and harvest accounts are
maintained.
 (iii) In respect of land revenue it should be seen whether
the demand has been fixed at the annual
Jamabandhi and the arrears have been corr5ectly
brought forward.

7. NAZAR (votive offerings) :

Income under the group can be classified as follows:

(i) Offerings in cash and kind

(ii) Hundial collections
(iii) Donations and contributions made on ceremonial
occasions such as marriages, betrothal, circumcision etc.
(iv) Other items such as slaughter of sheep etc.

The checks to be exercised are

(i) That the offerings in cash are correctly credited and

without delay in the wakf accounts. The offerings in kind
generally consists of valuable gold, silver, precious stones,
vessels, utensils and other articles of metals, grains goat
skins offered during Id-Uz-Zuha etc.

The checks to be exercised are

(i) That proper receipt is issued for offering in kind.

(ii) That it gives full description of the article received.
(iii) That they are taken to stock under respective registers
giving reference to page numbers and
(iv) That in respect of articles which are not found worthy of
retention, that they are disposed of and the amounts
credited in the Waqf accounts.

8. Hundials :

The collection usually consists of cash, coins and other articles.

The chief points to be seen are
 (i) That a list forthcoming pointing out the places and the
number of hundials installed.
(ii) That the hundials are opened in the manner prescribed in
the Waqfnama, if any, and as per directions issued by the
WaqfBoard (Rc.12920/13/A6/Chennai Dated 24.10.2013).
(iii) That they are opened in the presence of responsible and
respectable persons unconnected with the administration.
(iv) That temporary hundials if any installed on festive
occasions are opened as soon as the festival is over.
(v) That the content are sorted out and recorded in a register
duly attested by those present at the time of opening the
hundials.
(vi) That the cash obtained from the hundials is duly credited
in the accounts.
(vii) That receipts in the shape of valuables are taken to stock
under the respective stock register.
(viii) The staff members deputed for hundial counting work
should declare before opening of hundials the amount
available with them to the concerned superintendent of
Auqaf so as to ensure transparency. The office Assistants
who are deputed for hundial counting are directed to seal
the hundials after the contents were taken out from the
hundials. After the sealing process is done, the keys were
handed over to the concerned wakf offices.
(ix) Admissible T.A and D.A as per Tamilnadu Travelling
Allowances Rules are given to concerned hundial counting
staff .No remuneration to be paid to them, as it is against
the Tamilnadu Government rules and regulation.

9. Hiring of vessels :

It should be seen whether

(i) The hire charges for vessels have been collected at the
rates approved by the Waqf committee.
 (ii) The time of taking out and returning the vessels have
been noted in the register to be maintained or calculating
the hire charges due.
(iii) The hire charges have been collected for the number of
days as per the register.
(iv) In case of damages, the charges have been realized from
the persons responsible.
(v) The amounts collected have been properly accounted for
and credited.

10. Rent from sarais (Musafir Khana) :

It should be seen

(i) That applications of parties are forthcoming and they are

filed in consecutive orders.
(ii) That the hours of arrival and departure are noted.
(iii) That the amounts including initial deposits are collected in
accordance with the regulations in force.
(iv) That receipts are issued to the parties for collection of
rentals and
(v) That there is no delay in bringing them to account.

NOTE : usually the sarais are given free of rent for the first 3 days
and rent collected for subsequent stayals.

11. Law charges costs recovered:

It should be seen

(i) That in respect of costs awarded, the decree or judgement

copies are forthcoming.
(ii) That the amounts collected are in accordance with them.
(iii) That there is no undue delay in the realization of court
costs.

12. Gruel cooking collection:

During the month of Holy Ramzan, Gruel cooking is made in each
and every mosque for 30 days. The receipt for collection to be
shown in Annual Account without any omission and the
Expenditure incurred for 30 days also to be reflected in the
accounts concerned. This donation is mainly for specific purpose
(Gruel cooking). Hence this entity is not included in the
calculation of Audit fees or for Waqf contribution.

Tamilnadu Government provides free Rice for gruel cooking

during the month of Ramzan at free of cost. Hence purchase of
Rice from markets is inadmissible and an audit objection should
be raised.

13. Jummah collection:

Each and every mosque in Tamilnadu will collect an amount in

Jummah (Friday) Prayer. It is not for specific purpose and it is for
the upkeep of the maintenance of the Mosque. It is not a fixed
amount. The amount so collected varies from one week to
another. It should be brought in an account as a receipt. The
detail of collection of a particular week is displayed in the notice
board provided in a mosque after the Jummah prayer.

14. Subscription or Chandaa fees:

A membership fee was collected from Jamaath members. This fee

was fixed by the concerned Mosque. The fees is not uniform in all
Mosques, it varies from one Mosque to another depending upon
the financial position of the concerned Waqf. It may be collected
monthly or annually as per the decision of the committee of the
mosque concerned. It is not applicable for Dargah.

15. Death certificate fees:

Mosques attached with Kabarasthan issue death certificate for

burying the dead. The fee is very meager, say an amount of Rs.5
per certificate. Some of the Mosques in Tamilnadu may not collect
the fee for issuing death certificate. It is not applicable for any
institutions like Dargah, Takiah,etc.

16. Nikkah, Magni(betrothal) or Circumcision ceremony

fees :

Mostly in all mosques, they register the marriages of their

Jamaath members in their marriage register available with them
and provide NOC Certificate to them. They collect a fee for NOC.

17. Income from investments

It represents items of income realized from seasonal deposits held

by the Auqaf. The general checks are

(i) That the interest on investments is realized periodically

and credited to the Waqf accounts
(ii) That the interest accruing from investments not required
for immediate expenditure is reinvested and that a
Demand Collection and Balance is struck

Note : money not required for immediate expenditure shall be

invested either in the purchase of immovable properties or in any
of the securities mentioned in section 20 of the Indian Trust Act,
1882. The muthawalli shall not pledge or mortgage or encumber
in any manner the investment without the prior sanction of the
Board.

18.Lease :

Not withstanding anything contained in the Waqfnama, any lease

of any immovable property which is Waqf property shall be void
unless such lease is effected with the prior sanction of the Waqf
Board as per section 51 of the principal Act (Waqf Act 1995).

No Muthawalli or Board shall give or lease any Mosque, Dargah,

Khanqua, Kabaristhan or Imambara provided that no such
restriction shall apply to the Waqf land situated outside the main
premises (as per Waqf properties lease rules 2014).

A Muthawalli 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. The Muthawalli or Board shall invite
application from persons desiring to take the property on lease by
publishing a notice in the surrounding vicinity, distributing
leaflets, pamphlets or beating drums and pasting the said notice
on any conspicuous place like Mosque or any other public place.
The Muthawalli or Board shall execute the lease of the property in
favour of a person offering to pay higher rent.

In case of lease for a period of more than one year but not
exceeding thirty years and the lease rental income is more than
Rs.1000 per month, the Muthawalli or Board shall publish the
invitation of bids in at least one leading National and one regional
or local newspaper with details. The Waqf property shall be leased
out to the highest bidder and the bid in no case be less than the
reserve price. The reserve price per square feet for lease of Waqf
property shall not be less than 5% per annum of the market value
of the property which shall be the price fixed for registering a
conveyance in the office of the Registrar or sub-Registrar.

A lease of Waqf property for any period exceeding one year and
upto 30 years shall be registered at the office of the Registrar or
sub-Registrar under whose jurisdiction the property is situated
and the expenses towards registration of lease shall be borne by
the lessee.

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. The lessee shall not
assign sub-lease, pledge or transfer the lease or any interest
therein or in any way part with possession of all or any part of the
leased premises to be used or occupied by any other person. No
lease agreement shall contain a clause providing for automatic
renewal.

The lessee shall not use or permit to be used the leased premises
ar any part there of for any other purpose other than the purpose
agreed between the parties.

The lessee shall not build any structure on the leased premises
without due approval of the Board.

Upon expiration or termination of the lease, the lessee shall

immediately surrender possession of the leased premises and if
after the expiration or termination of the lease the lessee
continues to occupy the leased premises, it shall be treated as
encroachment and such encroachment shall be removed in
accordance with the procedure specified in section 54 of the
principal Act (Waqf Act 1995). Action may be taken also against
the un-authorised occupation under the PUBLIC PREMISES (eviction
of unauthorized occupants)ACT, 1971.

A lease or sub-lease for any period exceeding thirty years of any

immovable property which is Waqf property be void and of no
effect.

Provided further that lease of any Waqf property which is an

agricultural land for a period exceeding three years shall not
withstanding anything contained in the Deed or instrument of
Waqf or in any other law for the time being in force be void and of
no effect.

19. GRANTS :

Income under grants can be broadly classified as

(i) Tasdik
(ii) Yeomiah and
(iii) Beriz
(iv) Other grants for special purposes, if any
It should be seen

(i) That the amounts are brought into account without delay.
(ii) That relevant papers are forthcoming to verify the
correctness of the amounts realized and
(iii) In the case of grants for specific purposes the
amount is lodged separately and not diverted for ordinary
expenditure and are utilized for the purpose for which they
are sanctioned.

a) Government Grants :

The Government sanction grant every year to the needy and

eligible wakf institutions through the Tamil Nadu Wakf Board for
the renovation of Mosques / Dargahs and for the construction of
compound wall / barbed wire fencing around the Muslim burial
grounds.

b) Major Renovation Grants :

There are 6960 Waqf Institutions in Tamil Nadu State. Most of the
buildings comprising the Mosques, Dargahs and Madarasa etc.
belonging to the Waqf Institutions are old in dilapidated
conditions and the Auqaf are not financially sound to carry out
major repairs and renovation with their own funds. The
Government in G.O.Ms.28 B.C., M.B.C. & M.W. Dept. dated 17.6.2003
has sanctioned grant for Major Repairs and Renovation of Mosque
and Dargahs under Part-II Schemes. The Government of Tamil
Nadu have sanctioned grant to Tamil Nadu Wakf Board for major
repairs and renovation of Mosque.

20. Receipts capital:

The capital receipts should not generally be utilized for general

purposes. They should be earmarked and invested in interest
bearing securities and utilized for the purpose with the sanction of
the Tamilnadu Waqf Board.
 a) Sale of immovable properties: It should be seen
(i) That the sanction of WaqfBoard has been obtained for the
sale (vide: section 51 of the principal Act (Waqf Act 1995))
(ii) That the conditions prescribed by the Board, if any are
carried out.

Note : (1) Generally the sale proceeds of immovable properties

are received by the state WaqfBoard kept under deposits and the
sums are invested in interest bearing securities. In such cases it
should been seen that a proper receipt is forthcoming from state
WaqfBoard for the credit of the amounts in the state WaqfBoard’s
accounts and particulars of deposits are furnished to Auqaf.

(2) The muthawalli shall not enter into any financial bargain in the
purchase of any property without the previous sanction of the
Board.

b) Sale proceeds of movable properties:

The classification of those receipts as capital receipts will largely

depend upon the nature of the transactions whether such sale
proceeds should be earmarked and utilized for replacing the
articles sold.

The checks to be exercised are :

(i) That the sanction of the state WaqfBoard is obtained for

such sales.
(ii) That loss if any sustained as a result of the sale is ratified
by the Board.

c) Donations for specific purpose :

(i) That the relevant papers are forthcoming to verify the
correctness of the amounts received.
(ii) That the amount has been credited to accounts without
delay and
 (iii) That the amount is utilized for the purpose for which it has
been received.

d) Investments realized: It should be seen

(i) That the investments are realized promptly on the date of
maturity and reinvested and
(ii) That the investments are not pledged or mortgaged or
encumbered in any manner without the prior sanction of
the WaqfBoard.
e) Loans recovered and obtained: It should be seen
(i) That the loans are not raised without the prior sanction of
the WaqfBoard as per section 76 of the principal Act (Waqf
Act 1995).

21. Deposits and Advances:

Deposits:

The deposits of Waqf fall under the following categories

(i) Deposits from Renters and lessees, Deposits from contractors

(ii) Earnest money Deposit for tenders from bidders (iii) security
deposits from subordinates (iv) unclaimed dues relating to
contractors (v) Miscellaneous items which cannot be classified
under appropriate heads.

The main points to be seen are

(i) That no item of receipts which can be correctly be

classified under appropriate head of accounts is not
unnecessarily brought under Deposits.
(ii) That separate sets of pages are set apart for different
kinds of deposits.
(iii) That deposits received in cash have been promptly
accounted for in the accounts.
(iv) That deposits otherwise than in cash are recorded in a
separate register.
 (v) That those received otherwise than in cash are kept in
safe custody of the Muthawalli
(vi) That unclaimed deposits are transferred to revenue
accounts.
(vii) Those refunds have been made of proper vouchers.
(viii) That the monthly totals of receipts and refunds have been
made in the Deposit register and they agree with the
figures in the register of receipts and payment.
(ix) That the amounts are not diverted for other expenditure.

Advances : It should be seen

(i) That advances are drawn with the sanction of the

committee of the Board of Trustees.
(ii) That prima facie it is not excessive.
(iii) That there has been no undue delay in the recovery of
the advances.

Note : The Advances pending adjustment for more than one year
should be scrutinized and commented in the audit report.

22. Check of collections :

All collections in Auqaf should be collected by means of

miscellaneous receipts. During the verification of receipts it
should be seen

(i) That receipts have been given for items of income and for
all Nazar (votive offerings) received by the muthawalli of
the Waqf.
(ii) That the counterfoils of the receipts bear the signature of
the remitter for the collection.
(iii) That the collections have been brought to account without
delay and classified under proper heads of accounts.
(iv) That the collections are remitted into the bank without
being appropriated directly for expenditure.
NOTE : Every muthawalli is permitted to open an account in the
name of the Waqf in any local scheduled bank or a co-operative
bank or post office savings bank and shall deposit in it from time
to time all moneys received by him on behalf of the Waqf after
retaining with him.

If necessary, muthawalli is permitted to keep an amount of

not more than Rs.5000 as cash on hand to meet any unforeseen
or emergent expenses of the Auqaf (RC12515/A1-7/2013(12)
Tamilnadu WaqfBoard Dated 30.12.2015)

23.EXPENDITURE:

Expenditure may be incurred for the objects specified in the

Waqfnama, the scheme of administration etc; they broadly fall
under the following items:

(i) Salary of permanent staff (Pesh Imam, Muazzin etc) and

part-time staff (Accountant etc).
(ii) Travelling Allowances
(iii) Electricity tariff (under II-C Tariff)
(iv) Taxes (property tax, water tax, drainage tax etc)
(v) Annual Urs Festival expenditure
(vi) Investments made
(vii) Loans given
(viii) Repayment of loan
(ix) Law charges
(x) Repair of buildings
(xi) Stationery and printing charges
(xii) Postal and courier charges
(xiii) Cultivation expenses
(xiv) Furnitures, vessels, Tools and plants expenditures
(xv) Kandhuri Expenses
 (xvi) Expenditure on celebrations like Lailathul Qadr, Shab-e-
Barath, Moharram, Miladi-Nabi etc
(xvii)Charity (Zakaat) – if sanctioned under Waqfnama
(xviii) Interest on loans
(xix) Audit fees (@1.5 %)
(xx) WaqfBoard Contribution (@7%)

a) Electricity Bill :

As per TNEB Letter: X/CFC/Dir.T.Cell/places of worship/D.037/2006-07 Dated

234.01.2006, the Government of Tamilnadu has announced that the
power tariff for places of public worship was chargeable under LT
Tariff II-c, which is a domestic supply. The power tariff for places
of worship with an annual income above Rs.1000 is reduced from
Rs.3 per unit to Rs.1.50 per unit up to the consumption of first 60
units per month. The existing free power for places of worship
with an annual income below Rs.1000 will continue.

b) Festival and urs and periodical festivals :

Urs is celebrated on the death day of the saint or founder of the

Dargah. The expenditure is to be made in accordance with the
specification indicated in the Waqfnama, that the conduct of the
festival and urs is authorized one as contemplated under Muslim
law. Excess expenditure if so made, to be raised in audit
objection. This expenditure is not applicable to Mosques.

c) Kandhuri expenses :

Kandhuri is a ceremony made once in a year following the Urs. All

receipts and expenditure are shown in accounts. The expenditure
is to be made in accordance with the specification indicated in the
Waqfnama. This expenditure is not applicable to Mosques.

24. Audit on expenditure :

The general principles enunciated should be exercised in
conducting the audit of the above said items.

As per section 44 of the principal Act (Waqf Act 1995), every

muthawalli of a Waqf shall, in every year prepare, in such form
and at such time as may be prescribed, a Budget in respect of the
financial year next ensuing showing the estimated receipts and
expenditure during the financial year.

Expenditure in excess of the Budget as approved by the Board

and without provision may be commented upon in the Audit
report.

It should be seen whether

(i) The expenditures incurred are only on the objects

specified in the scheme for expenditure.
(ii) Necessary provisions have been made in the Budgets to
be prepared for every year and the same got approved by
the WaqfBoard.
(iii) Budgets have been prepared and got approved.
(iv) Necessary vouchers with serial numbers affixed have
been prepared and available in support of the expenditure
incurred.
(v) The rates at which payments have been made for the
items specified in the scheme of expenditure are correct.

25. Establishment :

According to regulation 5, approved in G.O.Ms.No. 3630, Revenue

Department, dated 23.12.1959, every muthawalli should submit
to the state WaqfBoard at the beginning of each year a list of
establishment of the Waqf showing the pay and allowances of
each member of the staff. The muthawalli shall have no power to
appoint any additional staff without the sanction of the
WaqfBoard.
The schedule of establishment as approved by the Tamilnadu
WaqfBoard should be called for and seen.

(i) That the strength of the various establishment and pay

and allowances paid are correct.

26. Travelling Allowance :

The checks to be exercised are

(i) That the allowances paid are for authorized objects of the
Waqf and they are admissible against the funds of the
Waqf.
(ii) That the allowances drawn are in accordance with the
provisions or rules, if any framed in this regard, and are
generally not in excess of what would have been
admissible to a Government servant of similar status.

27. Contingent and special charges :

The checks to be exercised are

(i) That special or unusual charges are supported by the

sanction of competent authorities
(ii) That the Budget allotment has not been exceeded
(iii) That the several sub-vouchers and receipts are all
forthcoming wherever necessary.
(iv) That the sub-vouchers have been duly cancelled so as to
prevent their fraudulent use again

28. Purchase of articles of stationery, furniture and other

articles :

The checks to be exercised are

(i) That the requirements for the year, we estimated before

the commencement of the year and the purchase effected
 either through tenders / quotations to the advantage of
the waqf, wherever possible.
(ii) That general rules laid down in financial code have been
followed as in the case of other institutions.
(iii) Wherever special rules or instructions have been issued in
the matter of purchases, they have been followed
properly.
(iv) That the stocks purchased have been accounted in the
stock register.
(v) That the deductions of stocks are supported by records for
their proper utilization and
(vi) That the balance stocks have been properly accounted for
and carried over to the next year register.

29. Contributions : The checks to be exercised are

(i) That the demand notice issued by the Tamilnadu

WaqfBoard is forthcoming and that a permanent receipt
issued by the WaqfBoard is available.
(ii) That the demand for contribution is correct with reference
to the net annual income of the Waqf for the year
calculated with reference to the return submitted to the
Board under section 72 of the principal Act (Waqf Act
1995).

Note 1: The muthawalli of every Auqaf, the net annual income of

which is not less than Rs.5000, shall pay annually, out of the net
annual income derived by the Waqf, a contribution of 7% to the
WaqfBoard, and Audit fees of 1.5% to the Government.

Where any Waqf is under direct management of the Board, such

administrative charges as may be specified by the chief executive
officer ( a contribution of 10% as per Tamilnadu WaqfBoard letter
RC.012515/A1-7/2013(I) Dated 11.01.2016) shall be payable by the
Waqf to the Board as per section 45(7) of the principal Act (Waqf
Act 1995).

Note 2: Net annual income shall mean the gross income of the
Auqaf from all sources in a year after making deductions as
mentioned in section 72 of the principal Act (Waqf Act 1995).

For calculating net annual income along with deductions

mentioned, the expenditure incurred in respect of lands directly
under cultivation by the muthawalli for the benefit of the Auqaf
shall be added. Provided that the total deduction in respect of
expenditure incurred under this clause shall not exceed 20% of
the income derived from lands belonging to the Auqaf.

30.Expenditure of works : The audit checks comprise of

(i) check of estimates

(ii) Examination of tender files
(iii) Verification of sanctions to the estimates and selection of
contractors
(iv) Check of bills with reference to Measurement book (M-
Book), stock accounts and contractors ledger.

Note 1: All constructions and improvements of Waqf properties

should have the prior approval of the Board with plan and
estimates. In case of constructions by contract, tenders should be
called for and the constructions started only after the approval of
the Board.

Note 2: At present further regulations regarding technical

sanction etc have not been framed by the Board to regulate the
execution of works as in the case of religious institutions.

31. Examination of Records : In the course of audit several of

the registers mentioned before would have been examined. The
auditor should make it a point that all required registers are
maintained and they are in the prescribed form. The cash book
should be closed every month and signed by the muthawalli in
token of the correctness of the amount.

The general principle of audit shall apply in so far as they are not
repugnant to the Act.

32. Ledger : It should be seen that

(i) Separate set of pages have been set a part for each head of
income and expenditure and

(ii) That the figures for the year beginning from April to March
have been correctly posted, total struck at the end of the year.

33. Inventory of Articles : An inventory of all (valuable articles)

should be maintained for periodical verification of additions and
disposals by every Waqf.

It should be seen in audit

(i) That such a register is maintained and kept upto date by

making suitable entries of additions etc, and that such a
list is furnished to the Board at the end of every year.

34. Register of properties : Every Waqf should maintain a

Register of properties held, with the serial numbers, extents, land
revenue and taxes paid and income derived.

It should be seen in audit:

(i) That such a register is maintained and duly got approved

by the Board.
(ii) That all properties that are not used by the Waqf are
leased out.
(iii) That the register is periodically made upto date by
carrying out the additions and alterations as approved by
the WaqfBoard.

35.Register of Grains : The checks to be exercised are

 (i) That the opening balances of the previous year are
correctly brought forward.

(ii) That receipts are entered as and when the grains are
received.

(iv) That issue is supported by proper indents and vouchers.

(v) That the dryage booked is covered by competent
sanction.
(vi) A DCB of grains has been prepared.

36. Register of Money Value Forms : It should be seen that

the stock of money value forms on receipt have been entered
with reference to the invoices, Bills and the issues made as and
when required and the balance on unused stock of money value
forms correctly accounted. They should be physically verified
tracing the up-to-date entries and certificate of availability of
books recorded against the balance noting the numbers both in
words and figures.

37.LIST OF IMPORTANT REGISTERS AND RECORDS:

(i) Bill books for collection of receipts

(ii) Vouchers for expenditures incurred
(iii) Cash book
(iv) Day book
(v) Ledger
(vi) Cheque book
(vii) Jummah prayer collection register
(viii) Subscription register
(ix) Holy Ramzan Gruel cooking register
(x) Register of Hundial collection
(xi) Kandhuri register
(xii) Register of Nikkah, Mangni, circumcision ceremony
(xiii) Bank Pass book or authorized Bank scroll
 (xiv) Cheque register
(xv) Demand draft register
(xvi) Grant register
(xvii)Register of stationery and printing
(xviii) Money value form register
(xix) Register of Tools and plants
(xx) Register of revenue yielding properties, fruit bearing trees
(xxi) Register of movable properties
(xxii)Register of immovable properties
(xxiii) Death certificate register
(xxiv) Register of investments
(xxv)Register of loans
(xxvi) Suit register
(xxvii) Minutes book
(xxviii) Miscellaneous stock register
(xxix) Contingent register
(xxx)Livestock register
(xxxi) Register of Deposits
(xxxii) Register of Advances
(xxxiii) Register of works
(xxxiv) register of vessels hiring out

As per Tamilnadu Waqf Board circular R.C.No.10861/A/8/92 Tamilnadu

WaqfBoard Dated 31.07.1992, the following registers were to be
maintained compulsorily by the Muthawallis

(i) Register of immovable properties

(ii) Money value form register
(iii) Tools and Plants register
(iv) Register of investments
(v) Register of lessees
(vi) Demand, Collection, Balance register
(vii) Records of Bank account in the name of Waqf institution
(viii) Register of loans and Advances
 (ix) Register of recovery of Advances
(x) Register of Deposits remitted to Electricity Board etc
(xi) Rent Advance register
(xii) Lease agreement register
(xiii) Register of postages and stamps.

38.MUTHAWALLI :

Muthawalli means any person appointed either verbally or under

any deed or instrument by which Auqaf has been created or by a
competent authority and includes any person who is a Muthawalli
by virtue of any custom. He is the Manager, Administrator,
Curator, Superintendent and Custodian of the Waqf property, but
not the owner of the Waqf property.

As per shariat amendment Act 1949, customs & usage and

heredietary muthawalliship are not applicable to the Auqaf of
Tamilnadu.

a) Every Muthawalli shall keep regular accounts – he shall

prepare and submit regularly every year a Budget and other
duties mentioned in section 50 of the principal Act (Waqf Act
1995).
b) Muthawalli may pay from the income of the Auqaf property
any expenses properly incurred by him for the purpose of
enabling him to furnish any particulars, documents or copies
under section 36 or any accounts under section 46 of the
principal Act (Waqf Act 1995).
c) Muthawalli shall not spend any money out of the funds of the
Auqaf of which he is the Muthawalli, for meeting any costs,
charges, or expenses which are of may be, incurred by him,
in relation to any suit, appeal or any other proceeding for, or
incidental to, his removal from office or for taking any
disciplinary action against himself under section 62 of the
principal Act (Waqf Act 1995).
 d) No Muthawalli, Executive officer or other person in charge of
the administration of a Waqf shall lend any money belonging
to the Waqf or any Waqf property or borrow any money for
the purposes of the Waqf except with the previous sanction
of the Board. Provided that no such sanction is necessary if
there is an express provision in the deed of Waqf for such
borrowing or lending, as the case may be under section 76(1)
of the principal Act (Waqf Act 1995).

Every muthawalli shall keep regular accounts as per section 46 of

the principal Act (Waqf Act 1995). And it shall be the duty of
every mutawalli to allow inspection of wakf properties, accounts
or records or deed or documents relating therein as per section
50(c) of the principal Act (Waqf Act 1995). If a muthawalli fails to
allow inspection as above, he is liable for penalties under section
61(d) of the principal Act (Waqf Act 1995).

The accounts of Auqaf submitted to the Board under section 46 of

the principal Act (Waqf Act 1995) shall be audited and examined
by an auditor. The auditor shall among other things, specify all
cases of irregular, illegal or improper expenditure and any other
matter which the auditor considers it necessary to report, and the
report shall also contain the name of any person who, in the
opinion of the auditor, is responsible for such expenditure or
failure as per section 47(2) of the principal Act (Waqf Act 1995).

39.RESTRICTION ON PURCHASE OF PROPERTY:

Not withstanding anything contained in a Waqfnama, no

immovable property shall be purchased for or on behalf of any
Auqaf from the funds of any Auqaf except with the prior sanction
of the Board under section 53 of the principal Act (Waqf Act 1995).

40.PROHIBITION OF TRANSFER OF AUQAF PROPERTY:

Not withstanding anything contained in this Act or in any other

law for the time being in force or any Waqfnama, No person shall
sell, gift, exchange, mortgage or transfer any movable or
immovable property which is a Waqf property to any other
person.

Any sale, gift exchange, mortgage or transfer of property referred

above shall be void under section 104A of the principal Act (Waqf
Act 1995).

41.EXEMPTION :

As per G.O.Ms.No.2000 Home Department Dated 16.08.1976, All the

buildings owned by Hindus, Christians and Muslims religious
public trusts and public charitable trusts are exempted from all
the provisions of the Tamilnadu Buildings (Lease and Rent
control) Act.

42.AUDIT FEES :

The cost of the audit of accounts of a Auqaf shall be met from the
funds of that Auqaf. The cost of such audit shall not exceed one
and half percent (1.5%) of the net annual income of the Auqaf as
per section 47 of the principal Act (Waqf Act 1995).

43.PROCEDURE FOR THE CONDUCT OF AUDIT AND COSTS:

The accounts of the Auqaf submitted to the Board under section

46 shall be audited and examined in case of Auqaf having no
income or a net annual income not exceeding Rs.50000, the
accounts of two percent of such Auqaf shall be audited annually
by an auditor appointed by the Board.

The accounts of the Auqaf having net annual income exceeding

Rs.50000 shall be audited annually by an auditor appointed by
the Board.

The state Government may under intimation to the Board at

anytime cause the account of any Auqaf audited by the Director
of Local funds or any other officer designated for that purpose by
the state Government (section 47(c) of the principal Act (Waqf Act
1995).

The audit of all Auqaf with an income of more than Rs.10 Lakhs
shall be conducted by the Inspectors and the audit report shall be
passed by the concerned Assistant Director of Local fund Audit.
GLOSSARY:

Amin He is usually in-charge of the finance of

the Waqf

Auqaf referred as Wakfs ( as per Waqf

(Amendment) Act,2013

Beneficiary A person or object for whose benefit a

waqf is created and includes religious,
pious and charitable objects and any
other objects of public utility sanctioned
by the Muslim law.

Beriz Allowance From 1878, a system called Beriz

deduction has been introduced
according to which the allowances
allotted to the Mosque was deducted
from the revenue of the village in which
the Mosque was situated and asked the
headman of the village to pay the
allowances direct to the Mosque
concerned.

Board means “ Waqf Board “

Dargah A place in general where the tombs of a

saint is located. People in general
Muslims and non-Muslims visit, pay
homage to the saint, even pray to the
saint.

Idgah It is a plot of land set apart for

performance of Daily prayers or Eid
prayers.

Jamaath Members of a Mosque unite to form a

Jamaath (Association)
Kabarasthan It is a place where all the Muslims of the
locality buried their dead. Generally
Kabarasthan are attached with Public
Mosque.

Khadim A servant of the Waqf and is usually

appointed by the Muthawalli to carry out
daily routine work.

Madad-i-Maash Maintenance Allowance

Mashrut-ul-Khidmat It is a public Waqf where the Waqif has

devoted the property for the general
benefit of Muslim community and means
a grant stipulated for rendering services.

Mosque A place where Muslims of the locality

prays 5 times a day to the Almighty
Allah. No other activity, ceremony or
function is attached to a Mosque. A
place open to all who are faithful. No
restrictions can be placed on the usage.

Muazzin or Bilal A man who calls for prayers 5 times a

day in a Mosque. He is a servant of the
Mosque.

Mujawar He is a caretaker of a Dargah, shrine or

Mosque. He sometimes discharges his
duties as a sweeper of the premises.

Muthawalli He is the Manager, Administrator,

Curator, Superintendent and Custodian
of the Waqf property, but not the owner
of the Waqf property.
Pesh-Imam or Kathib A man who leads the congregation of
prayers in a Mosque, and he is a salaried
servant of the Mosque.

Sajjadanashin He is the spiritual and temporal head of

a Muslim religious institution.

Takia A place where a Fakir or Dervish takes

up residence, before his pious life, and a
place is constructed for their lodgement.

Tasdik Allowance In the pre-colonial period, the rulers not

only granted the lands as Inams, but
also the money allowance to the
Mosque, which was known as Tasdik.

Wajh-i-Maash Subsistence Allowance

Waqf A permanent dedication by a person

professing Islam of any movable or
immovable property for any purpose
recognized by the Muslim law as pious,
religious or charitable.

Waqf-Al-Al-Aulad An unique feature of Islamic law where a

property is made Waqf for the welfare of
the Waqifs own family or his children or
children of his childrens.

Waqfnama A Deed or instrument by which a Waqf

has been created which stipulates the
terms of original dedication and
succession.

Waqif A person who is the creator or

responsible for the creation of a Waqf.
Yeomiah Allowance Pensions granted for service or for
subsistence for performing services like
worship in a Mosque, lighting tombs,
imparting instruction in Quran, and also
for the maintenance of grantees or their
families either as an act of charity or an
account of faithful, services rendered by
them.