7.2.2. Religious Endowments

♤ Religious Endowments and Waqfs are variants of Trusts which are formed for specific religious purposes e.g. for providing support functions relating to the deity, charity and religion amongst Hindus and Muslims respectively.

♤ Unlike Public Trusts, they may not necessarily originate from formal registration, nor do they specifically emphasise on a triangular relationship among the donor, Trustee and the beneficiary.

♤ Religious endowments arise from dedication of property for religious purposes. The corresponding action among the Muslim community leads to the creation of Waqfs. Waqfs tie up the property and devote the usufruct to people.

♤ The Indian Constitution recognizes freedom to manage religious affairs as one of the fundamental rights of its citizen. According to Article 26 - “Subject to public order, morality and health, every religious denomination or any section thereof shall have the right:

o to establish and maintain institutions for religious and charitable purposes;

o to manage its own affairs in matters of religion;

o to own and acquire movable and immovable property; and

o to administer such property in accordance with law.

♤ Though, the above provision gives freedom to create Trusts / charitable institutions for religious purposes, it puts some rider on administration of such property “in accordance with law” – Article 26(d).