Waqf Tribunal Bars Deemed Conveyance on Religious Land, Allows Redevelopment Under Waqf Supervision

Mumbai’s Ayesha Manzil Society Can Rebuild Homes but Not Own Waqf Property, Rules Tribunal

In a crucial judgment redefining the boundaries between religious trust property and housing society rights, the Maharashtra Waqf Board Tribunal has ruled that societies residing on waqf lands cannot claim ownership through deemed conveyance under the Maharashtra Ownership Flats Act (MOFA). The ruling, however, opens the door for supervised redevelopment to ensure both safety and compliance with religious endowment laws.

The order, issued on October 12, 2025, in Maharashtra Waqf Board vs. Ayesha Manzil Residents Welfare Association (Order No. WBT/MUM/2025/45), centered on a 2,500 sq. m. property in Bhendi Bazar, home to 120 families living on waqf land for over 25 years.

The Dispute: Ownership vs. Stewardship
The Ayesha Manzil Residents Welfare Association sought deemed conveyance after decades of occupancy, claiming title under MOFA Section 11. The Waqf Board objected, asserting its perpetual ownership under Section 3(r) and Section 32 of the Waqf Act, 1995, arguing that no law allows conversion of waqf property into freehold assets.

The society contended that neglect by the mutawalli (property manager) forced residents to self-fund repairs and proposed a redevelopment model preserving 70% affordable housing for waqf beneficiaries.

Tribunal’s Ruling: Limited Rights, Broader Relief
The Tribunal dismissed the society’s claim for conveyance but approved redevelopment under strict waqf oversight. It held that:

Waqf lands are inalienable, and MOFA cannot override the Waqf Act’s protective framework, citing Rajasthan Wakf Board vs. State of Rajasthan (2012) and Maharashtra Waqf Board vs. Abdul Rehman (2024).
Societies enjoy possessory but not ownership rights, allowing participation in redevelopment without altering waqf title.
Redevelopment can proceed under Section 51 (development approval) and Section 40 (permissible use) of the Waqf Act, provided 60% of units remain affordable and FSI gains fund waqf welfare.

The tribunal further noted that 200+ similar waqf societies in Mumbai face collapse risks and urged a policy framework integrating RERA oversight for waqf redevelopment.

Orders Issued:

Deemed conveyance rejected, waqf ownership maintained.
Redevelopment approved with Waqf Board as nodal authority.
Society to create a ₹2 crore corpus for waqf maintenance and ensure 36-month completion.
MahaRERA registration mandated with quarterly audit reports.
₹50,000 cost imposed for non-compliance delays.

Why It Matters
This landmark order reinforces the supremacy of the Waqf Act over MOFA in cases involving religious or charitable endowments. It carves a hybrid redevelopment model—protecting faith-based property rights while enabling resident safety and urban renewal.

The judgment may serve as a template for over 500 waqf-linked housing societies across Maharashtra, balancing heritage preservation with modernization.