Shahari Waqf Sampatti Vikas Yojana

The Shahari Waqf Sampatti Vikas Yojana was launched by the Central Waqf Council (CWC) for the Development of Urban Waqf Properties with the annual Grant-in-aid provided by the Ministry of Minority Affairs. This scheme has been started with a view to improve the financial position of the Auqaf and the Waqf Boards and enable them to enlarge the area of their welfare work. Let us look in detail about the Shahari Waqf Sampatti Vikas Yojana in this article.

Objective of the Scheme

The objective of the scheme is to protect vacant Waqf areas/property from the encroachers and to promote economically viable projects on these properties for generating more income and/or to widen welfare activities. Under the scheme, the interest-free loan is advanced to various Waqf Boards and Institutions in the country for the construction of economically viable buildings/properties on the Waqf land, such as commercial complex, hospitals, marriage halls, cold storage etc.

Eligibility Criteria

In general, to get the loan under the Shahari Waqf Sampatti Vikas Yojana, it is very essential to satisfy the following criteria.

Shahari Waqf Sampatti Vikas YojanaThe loan under this scheme will be provided only for the development of a waqf property that is situated in an Urban area.
Under this scheme, interest-free loan assistance will be granted to the State Waqf Boards (SWBs)/waqf institutions for the specific project developments which are approved by the CWC.
All the State Waqf Boards (SWBs)/registered waqf institutions, that are in full possession of the property to be developed and considering the opinion of CWC are not insolvent or otherwise suitable, would be eligible for an interest-free loan.
The proposed projects should be involved only in the construction or reconstruction work of economically viable buildings or projects on waqf lands.
A property in the Urban Area to be comprised within the jurisdiction of a Municipality/Cantonment Board and also includes any area within the distance that is not more than 8 kilometres from the local limits of any Cantonment Board or Municipality

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Loan Assistance

The maximum interest-free loan payable will be Rs.2 crores or 75% of the estimated cost of the project (excludes the total property value), whichever is less. The augmented income will be utilized by the SWBs/waqf institutions for their financial development position and to improve the scope of their welfare and charitable activities. The main purpose is intended to contribute to the overall progress and development of society.

Utilization of Additional Income

The additional income obtained from the developed Waqf property to be ensured that there must be the proper utilization of the additional income, the Mutawalli in consultation with the Board or the Board concerned as the case may be, would prepare a scheme for such utilization and submit it to the CWC for the final approval.

Terms of Repayment of Loan

The loan amount would be ordinarily repayable to the CWC in 16 half-yearly instalments, with the end of 1 year after the final instalment of the loan amount is disbursed.
The loanee concerned (as a measure of mutual regard for the furtherance of the objectives of Waqfs) would pay the administrative processing cost to the CWC at 8% of the loan amount before it is released.
The CWC would enhance the time frame for the payment of instalment due if considered necessary in the circumstances on any case.
In case 3 consecutive installments of the repayment of loan amount fall in arrears, CWC would, after giving the notice to the borrowers to pay due installment of the principal amount within a time frame of 30 days of the date of receipt of such notice by the borrowers, declare that the entire balance loan amount of the principal loan due thereon has become repayable in one lump sum.
After the expiry of the date of the final notice under certain conditions.
The CWC would proceed to take action for the recovery of the loan as per the loan contract or take such other action as it would propose for the recovery.

Implementation of the Scheme

The Project would be implemented strictly in accordance with the plan that is approved by a qualified expert/Architect/Engineer. There must not be a deviation from the approved plan would be made without the prior sanction of the CWC.

Application Procedure

Any SWB or Mutawalli (Manager) of a waqf who requires an interest-free loan can apply for the Shahari Waqf Sampatti Vikas Yojana by submitting the project proposal in the prescribed application form.

Processing of the applications

The loan applications received by the CWC are processed as per the below following:

The loan applications will be considered by the Waqf Development Committee of the CWC and will give its analysis report on each application. The review report made by the Committee will be considered in the meeting of the CWC and further process to be taken as per the decision of the CWC.
The CWC will release the approved loan in instalments. The first instalment up to 50% of the loan will be released initially and enduring amount of loan will be released in appropriate instalments only after receipt of UC and satisfactory progress report from the concerned boards
For the approved projects, SWBs or waqf institutions will also be required to submit a loan agreement form. The security for obtaining loans will be attached through the memorandum of Deposit of Title Deed/State Government Guarantee/Bank Guarantee/State Waqf Board Guarantee.
For all the approved projects, the CWC will levy 8% of a disbursed loan towards the administrative processing cost and the above loan amount will have to be deposited in advance by the SWB/waqf institution before the loan amount is released.

Release of Funds

The Ministry of Minority Affairs will issue grants-in-aid to the CWC in 2 instalments that are as follows:

First instalment: In the case of the first instalment, 50% of the fund will be released initially for the project.
Second instalment: The second instalment will be released based on the approved projects for which loan amount of more than Rs.75 lakhs has been sanctioned.

On the receipt of grants-in-aid, the CWC will release loan to concerned SWBs/waqf institutions after following due procedure and guidelines under the General Financial Rules (GFRs). The Utilization Certificates (UC) will be forwarded to this Ministry by the CWC in the format provided in the GFRs. For the smaller projects of loan up to Rs.75 lakhs, the CWC will release loan from their Revolving Fund.