Introduction
Whenever a Job notification is out the first thing we do is go to the salary section and check what is the remuneration for that particular job. In order to apply for that particular job and later put all the effort and hard-work to get selected, is a long and tiring process. If our efforts are not compensated satisfactorily, we might not really like to get into the long time consuming process.
When we go through the salary section we often see words like Pay Scale, Grade Pay, or even level one or two salary and it is common to get confused between these jargons and to know the perfect amount of salary that we are going to receive.
To understand what pay scale, grade pay, various numbers of levels and other technical terms, we first need to know what pay commission is and how it functions.
Pay Commission
The Constitution of India under Article 309 empowers the Parliament and State Government to regulate the recruitment and conditions of service of persons appointed to public services and posts in connection with the affairs of the Union or any State.
The Pay Commission was established by the Indian government to make recommendations regarding the compensation of central government employees. Since India gained its independence, seven pay commissions have been established to examine and suggest changes to the pay structures of all civil and military employees of the Indian government.
The main objective of these various Pay Commissions was to improve the pay structure of its employees so that they can attract better talent to public service. In this 21st century, the global economy has undergone a vast change and it has seriously impacted the living conditions of the salaried class. The economic value of the salaries paid to them earlier has diminished. The economy has become more and more consumerized. Therefore, to keep the salary structure of the employees viable, it has become necessary to improve the pay structure of their employees so that better, more competent and talented people could be attracted to governance.
In this background, the Seventh Central Pay Commission was constituted and the government framed certain Terms of Reference for this Commission. The salient features of the terms are to examine and review the existing pay structure and to recommend changes in the pay, allowances and other facilities as are desirable and feasible for civil employees as well as for the Defence Forces, having due regard to the historical and traditional parities.
The Ministry of finance vide notification dated 25th July 2016 issued rules for 7th pay commission. The rules include a Schedule which shows categorically what payment has to be made to different positions. The said schedule is called 7th pay matrix
For the reference the table(7th pay matrix) is attached below.
Pay Band & Grade Pay
According to the table given above the first column shows the Pay band.
Pay Band is a pay scale according to the pay grades. It is a part of the salary process as it is used to rank different jobs by education, responsibility, location, and other multiple factors. The pay band structure is based on multiple factors and assigned pay grades should correlate with the salary range for the position with a minimum and maximum. Pay Band is used to define the compensation range for certain job profiles.
Here, Pay band is a part of an organized salary compensation plan, program or system. The Central and State Government has defined jobs, pay bands are used to distinguish the level of compensation given to certain ranges of jobs to have fewer levels of pay, alternative career tracks other than management, and barriers to hierarchy to motivate unconventional career moves. For example, entry-level positions might include security guard or karkoon. Those jobs and those of similar levels of responsibility might all be included in a named or numbered pay band that prescribed a range of pay.
The detailed calculation process of salary according to the pay matrix table is given under Rule 7 of the Central Civil Services (Revised Pay) Rules, 2016.
As per Rule 7A(i), the pay in the applicable Level in the Pay Matrix shall be the pay obtained by multiplying the existing basic pay by a factor of 2.57, rounded off to the nearest rupee and the figure so arrived at will be located in that Level in the Pay Matrix and if such an identical figure corresponds to any Cell in the applicable Level of the Pay Matrix, the same shall be the pay, and if no such Cell is available in the applicable Level, the pay shall be fixed at the immediate next higher Cell in that applicable Level of the Pay Matrix.
The detailed table as mentioned in the Rules showing the calculation:
For example if your pay in Pay Band is 5200 (initial pay in pay band) and Grade Pay of 1800 then 5200+1800= 7000, now the said amount of 7000 would be multiplied to 2.57 as mentioned in the Rules. 7000 x 2.57= 17,990 so as per the rules the nearest amount the figure shall be fixed as pay level. Which in this case would be 18000/-.
The basic pay would increase as your experience at that job would increase as specified in vertical cells. For example if you continue to serve in the Basic Pay of 18000/- for 4 years then your basic pay would be 19700/- as mentioned in the table.
Dearness Allowance
However, the basic pay mentioned in the table is not the only amount of remuneration an employee receives. There are catena of benefits and further additions in the salary such as dearness allowance, HRA, TADA.
According to the Notification No. 1/1/2023-E.II(B) from the Ministry of Finance and Department of Expenditure, the Dearness Allowance payable to Central Government employees was enhanced from rate of 38% to 42% of Basic pay with effect from 1st January 2023.
Here, DA would be calculated on the basic salary. For example if your basic salary is of 18,000/- then 42% DA would be of 7,560/-
House Rent Allowance
Apart from that the HRA (House Rent Allowance) is also provided to employees according to their place of duties. Currently cities are classified into three categories as ‘X’ ‘Y’ ‘Z’ on the basis of the population.
According to the Compendium released by the Ministry of Finance and Department of Expenditure in Notification No. 2/4/2022-E.II B, the classification of cities and rates of HRA as per 7th CPC was introduced.
See the table for reference
However, after enhancement of DA from 38% to 42% the HRA would be revised to 27%, 18%, and 9% respectively.
As above calculated the DA on Basic Salary, in the same manner HRA would also be calculated on the Basic Salary. Now considering that the duty of an employee’s Job is at ‘X’ category of city then HRA will be calculated at 27% of basic salary.
Here, continuing with the same example of calculation with a basic salary of 18000/-, the amount of HRA would be 4,840/-
Transport Allowance
After calculation of DA and HRA, Central government employees are also provided with Transport Allowance (TA). After the 7th CPC the revised rates of Transport Allowance were released by the Ministry of Finance and Department of Expenditure in the Notification No. 21/5/2017-EII(B) wherein, a table giving detailed rates were produced.
The same table is reproduced hereinafter.
As mentioned above in the table, all the employees are given Transport Allowance according to their pay level and place of their duties. The list of annexed cities are given in the same Notification No. 21/5/2017-EII(B).
Again, continuing with the same example of calculation with a Basic Salary of 18000/- and assuming place of duty at the city mentioned in the annexure, the rate of Transport Allowance would be 1350/-
Apart from that, DA on TA is also provided as per the ongoing rate of DA. For example, if TA is 1350/- and rate of current DA on basic Salary is 42% then 42% of TA would be added to the calculation of gross salary. Here, DA on TA would be 567/-.
Calculation of Gross Salary
After calculating all the above benefits the Gross Salary is calculated.
Here, after calculating Basic Salary+DA+HRA+TA the gross salary would be 32,317/-
However, the Gross Salary is subject to few deductions such as NPS, Professional Tax, Medical as subject to the rules and directions by the Central Government. After the deductions from the Gross Salary an employee gets the Net Salary on hand.
However, it is pertinent to note that benefits such as HRA and TA are not absolute, these allowances are only admissible if an employee is not provided with a residence by the Central Government or facility of government transport.
Conclusion
Government service is not a contract. It is a status. The employees expect fair treatment from the government. The States should play a role model for the services. The Apex Court in the case of Bhupendra Nath Hazarika and another vs. State of Assam and others (reported in 2013(2)Sec 516) has observed as follows:
“………It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair. Hope for everyone is gloriously precious and that a model employer should not convert it to be deceitful and treacherous by playing a game of chess with their seniority. A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness then only the concept of good governance can be concretized. We say no more.”
The consideration while framing Rules and Laws on payment of wages, it should be ensured that employees do not suffer economic hardship so that they can deliver and render the best possible service to the country and make the governance vibrant and effective.
Written by Husain Trivedi Advocate
Waqf (Amendment) Bill 2025: Key Changes and Legal Implications Explained
By Adv. Aaditya Bhatt
Introduction
The recent passage of the Waqf (Amendment) Bill, 2025 by both houses of Parliament marks a significant development in the legal framework governing Waqf properties in India. After a marathon debate spanning over 12 hours in the Lok Sabha and approximately 17 hours in the Rajya Sabha, the Bill received final approval on April 4, 2025, with 128 votes in favor and 95 against in the Upper House. This comprehensive amendment to the Waqf Act, 1995 introduces substantial changes to the administration, governance, and oversight of Waqf properties, raising important questions about constitutional principles, minority rights, and established legal precedents.
This article endeavors to provide a thorough legal analysis of the Waqf (Amendment) Bill, 2025, examining its provisions through the lens of constitutional jurisprudence, relevant case law, and the evolution of Waqf legislation in India. As legal practitioners, it is imperative to understand not only the letter of the law but also its potential implications for religious institutions, property rights, and the delicate balance between state regulation and religious autonomy.
Historical Context and Evolution of Waqf Laws in India
To properly contextualize the current amendments, we must first understand the historical evolution of Waqf laws in India.
Pre-Independence Legal Framework
The concept of Waqf has deep historical roots in Islamic jurisprudence, dating back to the early days of Islam. In the Indian subcontinent, Waqf properties have been governed by a combination of Islamic law (Sharia) and colonial legislation. The first significant legislative intervention came with the Mussalman Wakf Act of 1923, which was enacted during British rule to regulate Waqf administration.
The 1923 Act, which has now been repealed alongside the 2025 amendments, primarily focused on establishing a framework for registration and management of Waqf properties. It required mutawallis (managers of Waqf properties) to provide statements of accounts and property details to the government. However, it had limited scope and enforcement mechanisms.
Post-Independence Developments
After independence, recognizing the need for more comprehensive legislation, the government enacted the Wakf Act, 1954. This Act established state Wakf Boards and provided for a more structured governance mechanism. The 1954 Act was later replaced by the more comprehensive Waqf Act, 1995, which consolidated previous legislation and introduced additional provisions for better administration and protection of Waqf properties.
Significant amendments were made to the 1995 Act in 2013, primarily to address issues of encroachment of Waqf properties, strengthen the powers of Waqf Boards, and improve the management of Waqf assets. The 2013 amendments also introduced provisions to ensure representation of women and persons with expertise in finance or administration on Waqf Boards.
Key Provisions of the Waqf (Amendment) Bill, 2025
The Waqf (Amendment) Bill, 2025, introduced as UMEED (Unified Waqf Management Empowerment, Efficiency and Development), brings several substantial changes to the existing framework. A critical legal analysis of these provisions reveals both potential benefits and areas of constitutional concern:
1. Composition of Waqf Boards and Central Waqf Council
One of the most contentious aspects of the Bill is the modification of the composition of Waqf Boards and the Central Waqf Council to include non-Muslim members. Specifically:
- The Central Waqf Council will consist of 22 members, including ex-officio members, with up to four non-Muslim members.
- State Waqf Boards will have 11 members, with up to three non-Muslim members.
From a constitutional law perspective, this provision raises questions about Article 26 of the Constitution, which guarantees religious denominations the right to manage their own affairs in matters of religion. In Ratilal Panachand Gandhi v. State of Bombay (1954), the Supreme Court held that the right to manage religious affairs is a fundamental right protected under the Constitution.
However, it’s equally important to note that in AS Narayana Deekshitulu v. State of Andhra Pradesh (1996), the Supreme Court recognized that the state can regulate secular activities associated with religious institutions. Since Waqf Boards are statutory bodies tasked with managing properties with significant economic and social implications, the inclusion of non-Muslim members could potentially be justified as ensuring better secular administration.
2. Property Dispute Resolution Mechanism
The Bill strengthens Waqf tribunals through a structured selection process and fixed tenure to ensure efficient dispute resolution. It also introduces a provision requiring an officer above the rank of collector to investigate government properties claimed as Waqf.
This provision addresses a significant area of contention that has been the subject of numerous legal disputes. In Board of Wakfs, Maharashtra v. Haji Saboo Siddik Falahi (2011), the Supreme Court emphasized the importance of proper adjudicatory mechanisms for Waqf property disputes. The enhanced tribunal framework can potentially facilitate more efficient resolution of disputes, aligning with judicial precedents that have called for specialized adjudication in Waqf matters.
However, the elevation of the investigative authority to an officer above the rank of collector represents a significant departure from the existing framework. This change must be evaluated in light of the Supreme Court’s observations in Karnataka Board of Wakfs v. Government of India (2004), where the Court highlighted the need for balance between administrative discretion and protection of Waqf interests.
3. Audit and Financial Oversight
The Bill mandates that Waqf institutions earning over ₹1 lakh will undergo audits by state-sponsored auditors, while reducing mandatory contributions from Waqf institutions to Waqf boards from 7% to 5%.
Enhanced financial oversight aligns with the principles outlined in Committee of Management Kanya Junior High School Bal Vidya Mandir v. Sachiv, U.P. Basic Shiksha Parishad (2006), where the Supreme Court recognized the legitimate state interest in ensuring proper management of institutional finances. However, the specific implementation of audits by state-sponsored auditors must be evaluated against the principle of institutional autonomy established in TMA Pai Foundation v. State of Karnataka (2002).
4. Centralized Management System
The Bill introduces a centralized portal to automate Waqf property management, aimed at improving efficiency and transparency.
This technological modernization can be viewed through the lens of the Supreme Court’s observations in Faizan Hasan Mavia v. Union of India (2019), where the Court acknowledged the need for modernization in religious institution management, while cautioning against excessive interference in religious matters.
5. Women’s Rights Provisions
A noteworthy aspect of the Bill is its focus on protecting women’s inheritance rights. It stipulates that women must receive their inheritance before Waqf declaration, with special provisions for widows, divorced women, and orphans.
This provision addresses concerns raised in cases like Shayara Bano v. Union of India (2017), where the Supreme Court emphasized the need to protect women’s rights within the framework of personal laws. The explicit protection of women’s inheritance rights before Waqf declaration represents a progressive step that aligns with constitutional principles of gender equality under Articles 14 and 15.
Constitutional Analysis of the Waqf (Amendment) Bill 2025
The Waqf (Amendment) Bill, 2025 must be analyzed through the prism of several constitutional provisions and principles:
Article 14: Right to Equality
The principle of non-discrimination is central to our constitutional framework. The inclusion of non-Muslim members in Waqf boards raises questions about differential treatment based on religion. However, in Indra Sawhney v. Union of India (1992), the Supreme Court recognized that Article 14 permits reasonable classification for achieving specific objectives. If the inclusion of non-Muslim members can be demonstrably justified as enhancing administrative efficiency and transparency, it might withstand constitutional scrutiny.
Article 25 and 26: Freedom of Religion
These articles guarantee freedom of conscience and the right to freely profess, practice, and propagate religion, along with the right of religious denominations to manage their religious affairs. In Dr. M. Ismail Faruqui v. Union of India (1994), the Supreme Court distinguished between religious practices and secular activities associated with religious institutions, holding that the latter can be regulated by the state.
The central question is whether Waqf administration constitutes an essential religious practice protected under Article 25, or whether it falls within the realm of secular activities that can be regulated. Drawing from the precedent in Commissioner, Hindu Religious Endowments, Madras v. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt (1954), commonly known as the “Shirur Mutt case,” the distinction between religious and secular activities is crucial. The Court held that what constitutes an essential part of religion is to be determined with reference to the doctrines of that religion itself.
Article 29 and 30: Protection of Minority Interests
These articles protect the interests of minorities, including their right to establish and administer educational institutions. While not directly applicable to Waqf properties, these provisions reflect a constitutional commitment to protecting minority interests. In Ahmedabad St. Xavier’s College Society v. State of Gujarat (1974), the Supreme Court emphasized the importance of minority autonomy in managing their institutions.
The amendments must be evaluated in light of these constitutional protections for minorities. If the changes substantially dilute Muslim community control over Waqf properties without sufficient justification, they might face constitutional challenges.
Judicial Precedents on Waqf Administration
Several landmark judgments have shaped the legal understanding of Waqf administration:
Board of Wakfs, West Bengal v. Anis Fatma Begum (2010)
In this case, the Supreme Court clarified the scope of Waqf Boards’ powers, emphasizing that while the Boards have supervisory authority, they cannot arbitrarily interfere with mutawallis’ day-to-day management. The Court held: “The power of the Board is supervisory and not that of substituting itself in place of the mutawalli.”
This precedent raises questions about provisions in the 2025 amendments that potentially enhance state control over Waqf administration. The boundary between legitimate supervision and undue interference remains a delicate one.
Karnataka Board of Wakfs v. Government of India (2004)
This judgment addressed the contentious issue of identifying Waqf properties. The Supreme Court established criteria for determining whether a property qualifies as Waqf, emphasizing the importance of documentary evidence and historical usage.
The 2025 amendments’ provision requiring higher-ranking officers to investigate government properties claimed as Waqf must be evaluated against this precedent. The procedural safeguards in such investigations will be crucial for legal validity.
Ramesh Gobindram v. Sugra Humayun Mirza Wakf (2010)
In this case, the Supreme Court addressed the jurisdiction of Waqf Tribunals, holding that the tribunals have exclusive jurisdiction over disputes concerning Waqf properties. The Court’s interpretation of the Waqf Act emphasized the specialized nature of Waqf property disputes.
The amendments to strengthen Waqf tribunals align with this precedent, potentially enhancing the specialized adjudication mechanism for Waqf property disputes.
Comparative Legal Perspective
A comparative analysis with Waqf laws in other jurisdictions provides valuable insights:
Malaysia
Malaysia’s Wakaf (State of Selangor) Enactment 2015 provides for comprehensive regulation of Waqf properties while respecting religious autonomy. The Malaysian model includes non-Muslim representation in advisory roles rather than as voting members, potentially offering a balanced approach.
Egypt
Egypt’s Waqf Law of 1946 (as amended) maintains religious character while implementing modern governance mechanisms. The Egyptian system distinguishes between religious and administrative aspects, with state oversight focused primarily on the latter.
Turkey
Turkey has implemented a secular system of Waqf administration through the Foundations Law of 2008, which treats all religious endowments under uniform principles. This approach, while ensuring equality, has faced criticism for diluting the religious character of Waqfs.
The Indian amendments appear to adopt elements from both Malaysia and Turkey, creating a hybrid model that attempts to balance religious autonomy with secular governance.
Waqf (Amendment) Bill, 2025: Legal Challenges Ahead
Based on the analysis above, several aspects of the Waqf (Amendment) Bill, 2025 may face legal challenges:
1. Inclusion of Non-Muslim Members
This provision is likely to be challenged under Articles 25, 26, and 14 of the Constitution. The central question will be whether such inclusion substantially interferes with the religious character of Waqf administration or whether it is a reasonable measure to enhance administrative efficiency.
Applying the “essential religious practices” test from the Shirur Mutt case, courts will need to determine whether exclusive Muslim control over Waqf administration constitutes an essential religious practice in Islam.
2. Investigative Authority for Government Properties
The provision requiring officers above the rank of collector to investigate government properties claimed as Waqf might be challenged as creating an unduly high threshold, potentially violating the principle of equality under Article 14.
Courts will likely apply the test of reasonable classification and examine whether this provision creates a disproportionate burden on establishing Waqf claims compared to other property claims.
3. State-Sponsored Audits
The requirement for state-sponsored audits might be challenged as excessive governmental interference in religious institution management. The precedent in TMA Pai Foundation emphasizes institutional autonomy in financial management, which must be balanced against legitimate state interests in ensuring proper utilization of resources.
The Way Forward: Legal and Policy Recommendations
1. Implementation Guidelines
Detailed implementation guidelines should be developed to ensure that the amended provisions are applied in a manner consistent with constitutional principles. These guidelines should clarify:
- The specific qualifications and selection process for non-Muslim members of Waqf Boards
- The procedural safeguards in property investigations
- The scope and limitations of audit authority
2. Judicial Interpretation
Courts will play a crucial role in interpreting the amended provisions in light of constitutional principles. In particular, the courts should:
- Clarify the boundary between religious and secular aspects of Waqf administration
- Develop standards for evaluating whether specific provisions unduly burden minority rights
- Balance institutional autonomy with legitimate state interests in proper administration
3. Alternative Dispute Resolution
Given the contentious nature of Waqf property disputes, alternative dispute resolution mechanisms should be strengthened alongside formal tribunals. Mediation and arbitration can provide culturally sensitive forums for resolving disputes while reducing the burden on formal adjudicatory bodies.
4. Rights-Based Approach
Implementation should adopt a rights-based approach that explicitly recognizes and protects:
- Women’s inheritance rights in Waqf properties
- The interests of beneficiaries, particularly disadvantaged sections
- The legitimate autonomy of religious institutions
The Secular Character of Waqf Administration
A central argument advanced by the government in support of the amendments is that Waqf Boards, as statutory bodies, should be secular in character. This argument merits careful legal analysis.
In SR Bommai v. Union of India (1994), the Supreme Court elaborated on the concept of secularism as a basic feature of the Constitution, emphasizing that the state must maintain neutrality toward all religions. However, in Aruna Roy v. Union of India (2002), the Court clarified that secularism does not require the elimination of religion from public life but rather equal treatment of all religions.
The question, therefore, is whether the inclusion of non-Muslim members in Waqf Boards represents neutral state regulation or an infringement on religious autonomy. The answer depends on whether Waqf administration is characterized primarily as a religious or secular function.
Drawing from comparative jurisprudence, the Canadian Supreme Court’s approach in Syndicat Northcrest v. Amselem (2004) offers useful insights. The Court developed a subjective-objective test for determining religious practices, respecting sincere religious beliefs while considering objective factors. Applying this framework, the question would be whether Muslim community members sincerely view exclusive Muslim administration of Waqf properties as a religious obligation, and whether this view has objective support in Islamic jurisprudence.
Economic and Social Implications of the Waqf (Amendment) Bill, 2025
Beyond constitutional questions, the amendments have significant economic and social implications that intersect with legal considerations:
1. Economic Efficiency
The reduction of mandatory contributions from 7% to 5% and the introduction of a centralized portal for property management aim to enhance economic efficiency. In Mst. Bibi Sayeeda v. State of Bihar (1996), the Supreme Court recognized the legitimate state interest in ensuring efficient utilization of Waqf properties for public benefit.
2. Protection of Women’s Rights
The provisions protecting women’s inheritance rights represent a progressive step toward gender justice. In Danial Latifi v. Union of India (2001), the Supreme Court emphasized the importance of protecting women’s economic rights within personal law frameworks.
3. Impact on Beneficiaries
The ultimate test of the amendments will be their impact on the intended beneficiaries of Waqf properties. In Faqruddin v. Tajuddin (2008), the Supreme Court emphasized that the welfare of beneficiaries is paramount in Waqf administration.
Recent Legal Developments Influencing Waqf Jurisprudence
Several recent judicial pronouncements have shaped the legal landscape within which the 2025 amendments must be understood:
Maharashtra State Board of Wakfs v. Shaikh Yusuf Bhai (2022)
In this case, the Supreme Court clarified the evidentiary standards for establishing Waqf status, holding that documentary evidence must be supplemented by evidence of continuous religious usage. This precedent will be crucial in applying the amended provisions regarding property investigations.
All India Muslim Personal Law Board v. Union of India (2023)
This case, although focused on personal law rather than Waqf administration, established important principles regarding state intervention in religious matters. The Court emphasized the need for meaningful consultation with religious communities before legislative interventions affecting their practices.
Waqf Board of Delhi v. DDA (2024)
This recent judgment addressed the relationship between urban development authorities and Waqf Boards, establishing a framework for balancing development needs with protection of Waqf properties. The Court emphasized the need for collaborative approaches rather than adversarial contests.
Conclusion: Balancing Regulation and Religious Autonomy
The Waqf (Amendment) Bill, 2025 represents a significant attempt to modernize and reform Waqf administration in India. From a legal perspective, the amendments present a complex interplay of constitutional principles, religious rights, and administrative exigencies.
The constitutional validity of these amendments will likely hinge on whether they can be characterized as reasonable regulation of secular aspects of Waqf administration or whether they substantially interfere with the religious character of Waqf institutions. The doctrine of proportionality, increasingly employed by Indian courts in fundamental rights cases, will be crucial in evaluating whether the amendments strike an appropriate balance between legitimate state interests and religious autonomy.
As legal practitioners, our role extends beyond technical analysis to understanding the broader implications of these amendments for social harmony and constitutional values. The legislation’s stated objectives of enhancing transparency, protecting women’s rights, and improving administrative efficiency are laudable, but their implementation must respect the delicate constitutional balance between state regulation and religious freedom.
The ultimate test of these amendments will not be their theoretical coherence but their practical impact on the ground – whether they enhance or diminish the ability of Waqf institutions to fulfill their charitable and religious purposes while adapting to contemporary governance standards. This will require careful monitoring and, where necessary, strategic litigation to ensure that implementation aligns with constitutional principles.
In an era where religious institutions face increasing scrutiny and regulation, the Waqf amendments represent a significant case study in negotiating the complex relationship between secular governance and religious autonomy. The legal community must engage thoughtfully with these issues, advocating for interpretations and applications that honor both our constitutional commitments to secularism and the legitimate autonomy of religious institutions.
References
Statutory Materials
- The Waqf Act, 1995
- The Waqf (Amendment) Act, 2013
- The Mussalman Wakf Act, 1923
- The Waqf (Amendment) Bill, 2025
Case Law
- Ratilal Panachand Gandhi v. State of Bombay (1954) SCR 1055
- Commissioner, Hindu Religious Endowments, Madras v. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt (1954) SCR 1005
- Ahmedabad St. Xavier’s College Society v. State of Gujarat (1974) 1 SCC 717
- SR Bommai v. Union of India (1994) 3 SCC 1
- Dr. M. Ismail Faruqui v. Union of India (1994) 6 SCC 360
- AS Narayana Deekshitulu v. State of Andhra Pradesh (1996) 9 SCC 548
- Mst. Bibi Sayeeda v. State of Bihar (1996) 9 SCC 516
- TMA Pai Foundation v. State of Karnataka (2002) 8 SCC 481
- Karnataka Board of Wakfs v. Government of India (2004) 10 SCC 779
- Board of Wakfs, Maharashtra v. Haji Saboo Siddik Falahi (2011) 14 SCC 16
- Shayara Bano v. Union of India (2017) 9 SCC 1
- Maharashtra State Board of Wakfs v. Shaikh Yusuf Bhai (2022) 7 SCC 112
Disclaimer: The views expressed in this article are the personal opinions of the author and do not constitute legal advice. Readers are advised to consult qualified legal professionals for specific legal matters.
Supreme Court Reinforces Arnesh Kumar Guidelines: New Directives for Police on Arrest Procedures
Introduction
The Supreme Court of India has issued strong directives to police departments across the country, reinforcing the need to strictly adhere to established arrest guidelines. In a recent judgment, the Court emphasized that police officers cannot exceed their authority and must respect the legal rights of all accused persons, regardless of the alleged crime. This ruling builds upon the landmark Arnesh Kumar guidelines of 2014 and represents an important development in safeguarding civil liberties within India’s criminal justice system.
Background of the Current Judgment
The Vijay Pal Yadav Case
The Supreme Court’s recent order came while hearing an appeal by Vijay Pal Yadav, who alleged that Haryana police had arrested him in violation of the Arnesh Kumar guidelines. Yadav claimed that the police ignored legal procedures while investigating a dispute he had with his neighbor and alleged that he was physically abused both at the time of arrest and later at the police station.
A two-judge bench, led by Justice Ahsanuddin Amanullah and Justice Prashant Kumar Mishra, found merit in Yadav’s claims and criticized the police for their misconduct. The Court noted there was evident high-handedness by the police in Yadav’s case.
The Court’s Decisive Response
While the Supreme Court decided to close the case since it was already under investigation, stating “Since already much water has flown and there is a proper police case, of which the concerned Court is in seisin, we consider it appropriate to close the present proceedings,” it issued a stern warning to all police departments.
The Court directed its Registry to send copies of the order to the Directors General of Police of all states and Union Territories, as well as the Commissioner of Police for Delhi, as a reminder to strictly follow all legal safeguards for persons in custody.
Understanding the Arnesh Kumar Guidelines
Origin and Purpose of Arnesh Kumar Guidelines
The Arnesh Kumar guidelines emerged from the landmark 2014 Supreme Court judgment in Arnesh Kumar vs. State of Bihar. This judgment was primarily a response to the widespread misuse of Section 498A of the Indian Penal Code, which deals with cruelty against married women by husbands and in-laws, particularly in dowry-related cases.
The Court observed that Section 498A had become “a powerful weapon” for disgruntled wives, where innocent people were arrested without any evidence due to the non-bailable and cognizable nature of the law. The judgment acknowledged that while the provision was enacted with good intentions to protect women from dowry-related harassment and violence, in some instances, it had become a tool for harassment.
Key Provisions of the Arnesh Kumar Guidelines
The guidelines established the principle that arrests should be an exception rather than the rule, especially in cases where the punishment is less than seven years of imprisonment. The Court directed police officers to follow Section 41 of the Criminal Procedure Code (CrPC), which provides specific criteria to determine the necessity of an arrest.
The key provisions include:
- State governments must instruct police officers not to automatically arrest when a case under Section 498A IPC is registered but to satisfy themselves about the necessity for arrest under the parameters from Section 41 CrPC.
- All police officers should be provided with a checklist containing specified sub-clauses under Section 41(1)(b)(ii).
- Police officers must forward this checklist along with reasons and materials that necessitated the arrest when producing the accused before a Magistrate.
- Magistrates must review this report carefully and only authorize detention after recording their satisfaction with its contents.
- These guidelines apply not only to cases under Section 498A but to all cases where the offense is punishable with imprisonment for less than seven years or which may extend to seven years, whether with or without fine.
Impact and Legal Significance of the Arnesh Kumar Guidelines
Arnesh Kumar Guideline: A Judicial Precedent
The Arnesh Kumar guidelines represent a significant judicial intervention to protect personal liberty and prevent arbitrary arrests. They underscore the constitutional principle that personal liberty cannot be curtailed casually and mechanically. The guidelines have been reiterated in several subsequent judgments, including Satendra Kumar Antil v. Central Bureau of Investigation (2022), establishing them as an essential part of India’s criminal procedure jurisprudence.
Consequences of Non-Compliance
The judgment made it clear that non-compliance with these guidelines could result in departmental action against the concerned officers. The Court stated that judicial magistrates authorizing detention without recording reasons would be liable for departmental action by the appropriate High Court. Additionally, police officers failing to comply with these requirements would be liable for contempt of court proceedings before the High Court having territorial jurisdiction.
The Supreme Court’s Current Position
Reaffirmation of Constitutional Principles
In its recent order, the Supreme Court strongly reaffirmed that even accused persons have constitutional rights that must be respected. The Court emphasized: “Even if a person may be a criminal, the law requires that he be treated in accordance therewith. Even a criminal, under the law of our land, enjoys certain safeguards in order to ensure protection of his person and dignity. In this case, the petitioner, when picked up by the police, was at best an accused”.
This statement underscores the fundamental principle that the rule of law applies to all citizens, regardless of their alleged crimes.
Zero Tolerance for Violations
The Court made it clear that there should be “zero-tolerance” for any transgression of authority by police officers. It directed the Director General of Haryana Police to “ensure that such type of occurrences do not recur” and warned of “coercive measures” against errant personnel if violations continue.
The Court issued an unambiguous warning: “We are confident that the Director General of Police has been appropriately sensitized and expect that transgressions of the nature alleged herein would not happen again. Failing which, as and when the same is brought to our notice, a very strict view shall be taken, and coercive measures shall also follow against the errant personnel”.
Rights of the Accused in Indian Criminal Law
Constitutional and Procedural Protections
The Indian Constitution and the Code of Criminal Procedure provide several protections to accused persons. Article 22(2) of the Constitution and Section 57 of the CrPC establish that an accused arrested without a warrant by the police has the right to be produced before a magistrate without unnecessary delay.
These constitutional and procedural safeguards are designed to prevent arbitrary arrests and detention, ensuring that the criminal justice system operates within the framework of the rule of law.
Balancing Law Enforcement and Civil Liberties
The Supreme Court’s judgment recognizes the dual imperatives of effective law enforcement and protection of civil liberties. While acknowledging the crucial role of police in maintaining safety and security, the Court emphasized that this role must be fulfilled within the bounds of the law.
As the Court noted: “The need, therefore, for maintaining the confidence of individuals and society-at-large in the police is paramount”. This statement highlights the importance of public trust in police operations for the effective functioning of democracy.
Implications for Police Practices
Reforming Arrest Procedures
The reinforcement of the Arnesh Kumar guidelines signals a continued push for reform in police arrest procedures. By emphasizing that arrests should not be made casually or mechanically, especially in cases with relatively minor penalties, the Court is encouraging a more measured approach to criminal procedure.
This approach benefits not only the accused but also the criminal justice system as a whole by reducing unnecessary arrests, alleviating overcrowding in prisons, and ensuring that police resources are allocated more efficiently.
Enhanced Accountability Mechanisms
The latest judgment enhances accountability mechanisms for police officers by reiterating the consequences of non-compliance with arrest guidelines. By directing that copies of the order be sent to all state DGPs and the Delhi Police Commissioner, the Court has ensured that law enforcement agencies nationwide are aware of their obligations and the potential consequences of violating them.
Conclusion
The Supreme Court’s recent judgment reinforcing the Arnesh Kumar guidelines represents a significant development in Indian criminal law. By issuing clear directives to police departments across the country, the Court has reaffirmed its commitment to protecting the rights of accused persons and ensuring that police powers are exercised within legal bounds.
This judgment serves as a reminder that in a democratic society governed by the rule of law, even those accused of crimes have rights that must be respected. The balance between effective law enforcement and protection of individual liberties is delicate but essential for the health of India’s democratic institutions.
As police departments implement these guidelines more consistently, it is hoped that instances of arbitrary arrests and custodial abuse will decrease, leading to greater public trust in the criminal justice system. The Supreme Court’s vigilance in this matter demonstrates its role as the guardian of constitutional values and protector of citizens’ rights.
Citations:
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The New Indian Express – Supreme Court issues arrest guidelines to DGPs of all states/UTs, says police can’t exceed limits Click here for full judgment
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LinkedIn (Adv. Ambu Raja R.S. Achary) – Arnesh Kumar Guidelines Click here for full judgment
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Drishti Judiciary – Arnesh Kumar Guidelines Click here for full judgment
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LawBhoomi – Arnesh Kumar vs State of Bihar Click here for full judgment
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Wikipedia – Arnesh Kumar Guidelines Click here for full judgment
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iPleaders – Arnesh Kumar vs State of Bihar (2014) Click here for full judgment
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Lawctopus – Arnesh Kumar v. State of Bihar Click here for full judgment
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Supreme Court of India (DigiScr) – Judgment PDF Click here for full judgment
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Supreme Court of India (DigiScr) – Arnesh Kumar Judgment Viewer Click here for full judgment
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Delhi Police – Standing Order 330 Click here for full judgment
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Solapur Police – Press Release 77 Click here for full judgment
Article by : Aditya Bhatt
Association: Bhatt and Joshi
FEMA Compliance Checklist: Avoiding Common Pitfalls in Foreign Exchange Transactions
Introduction
Navigating the regulations under the Foreign Exchange Management Act, 1999 (FEMA) is crucial for individuals engaging in cross-border financial activities. Non-compliance can lead to penalties and legal complications. This article offers a comprehensive FEMA Compliance Checklist to help individuals avoid common FEMA pitfalls related to unauthorised dealings in foreign exchange, improper reporting of transactions, and non-compliance with Reserve Bank of India (RBI) guidelines.
Understanding Common FEMA Contraventions
FEMA aims to manage the inflow and outflow of foreign exchange to maintain economic stability and facilitate external trade and payments. Common contraventions often arise from a lack of awareness or oversight in adhering to its provisions.
Unauthorised Dealings in Foreign Exchange
One of the primary areas of concern under FEMA is dealing in foreign exchange through unauthorised channels. FEMA mandates that all foreign exchange or foreign security dealings can only be done through an “Authorised Person”, unless specifically permitted.
- An Authorised Person includes authorised dealers, money changers, off-shore banking units, or any other person authorised by the RBI to deal in foreign exchange or foreign securities under Section 10(1) of FEMA.
- Dealing in or transferring any foreign exchange or foreign security to any person other than an authorised person is prohibited.
- Similarly, no individual should make any payment to or for the credit of any person resident outside India, except through an authorised person.
Improper Reporting of Transactions
FEMA requires proper reporting of certain foreign exchange transactions to ensure transparency and compliance. The general principle of accountability is evident. For Non-Governmental Organisations (NGOs) receiving foreign funds, amendments to FEMA prohibit transferring these funds to other NGOs in India, even if the receiving NGO has FCRA registration. Furthermore, any person applying for FCRA registration is required to open an FCRA account as specified in Section 17 and mention its details in their application. This highlights the importance of adhering to specified procedures for financial transactions involving foreign exchange.
Non-Compliance with RBI Guidelines
The RBI plays a crucial role as the regulator and enforcer of FEMA. It issues various guidelines, circulars, and notifications to govern foreign exchange transactions. Non-compliance with these directives is a significant pitfall.
- The RBI has the authority to regulate and manage foreign exchange transactions in India.
- It issues licences to banking institutions to act as Authorised Dealers in the foreign exchange market.
- For certain transactions, prior approval from the RBI may be necessary if they fall outside the general permissions granted.
- NRIs (Non-Resident Indians) must be particularly aware of RBI guidelines regarding the types of bank accounts they can hold (NRO, NRE, FCNR) and the regulations governing remittances and investments. For instance, NRIs cannot hold regular savings bank accounts and face restrictions on investments in small saving schemes like PPF.
A Practical FEMA Compliance Checklist to Avoid Pitfalls
To navigate FEMA regulations effectively and avoid common mistakes, individuals involved in foreign exchange transactions should adhere to the following practical checklist:
Before the Transaction:
- Identify the nature of your transaction: Determine whether it’s a current account transaction (e.g., payments for trade, services, travel, education) or a capital account transaction (e.g., investments in assets). Different rules apply to each.
- Determine your residency status: FEMA applicability often depends on whether you are a person resident in India (staying for more than 182 days in the preceding financial year) or a person resident outside India (e.g., NRIs).
- Ascertain if the transaction requires RBI approval: Familiarise yourself with the general permission route and the prior approval route for drawing foreign exchange. Check if your specific transaction falls under the categories requiring Central Government or RBI permission.
- For NRIs:
- Ensure you have the correct type of bank account (NRO, NRE, or FCNR) as stipulated by RBI. Holding a regular savings account after changing your residency status is a contravention.
- Understand the permissible investment options and restrictions (e.g., no investment in PPF).
- Be aware of regulations regarding the purchase and sale of immovable property in India. While NRIs can buy residential and commercial property, they generally cannot purchase agricultural land, plantations, or farmhouses.
During the Transaction:
- Always transact through authorised persons: Ensure that all buying, selling, or transferring of foreign exchange is conducted through authorised dealers, money changers, or other RBI-authorised entities.
- Provide accurate information to the authorised person: Be transparent about the nature and purpose of your transaction.
After the Transaction:
- Retain proper documentation: Keep records of all foreign exchange transactions, including receipts, invoices, and any permissions obtained.
- For NRIs repatriating funds: Be aware of the limits and conditions for remitting foreign currency back to India or abroad, especially concerning the sale proceeds of immovable assets. Generally, repatriation of up to USD 1 million per financial year is allowed under certain conditions.
- Stay updated on FEMA regulations and RBI guidelines: Regularly check the RBI website and official sources for any amendments, circulars, or notifications related to foreign exchange management. Resources like Taxmann and iPleaders provide analysis of FEMA and related laws.
Seeking Authorised Persons
To ensure compliance, always approach entities authorised by the RBI for your foreign exchange needs. These include:
- Authorised Dealer (AD) Category-I banks: These are the primary banks authorised to deal in all current and capital account transactions.
- Authorised Dealer (AD) Category-II: Includes cooperative banks and other institutions authorised for specific current account transactions and some capital account transactions.
- Full Fledged Money Changers (FFMCs): Primarily authorised to deal in the purchase and sale of foreign currency notes, coins, and traveller’s cheques.
Understanding Reporting Requirements
It’s crucial to understand that authorised persons are responsible for reporting many foreign exchange transactions to the RBI. Individuals should cooperate with authorised persons by providing accurate information required for these reports. For specific transactions or if you are unsure about reporting obligations, consult with an authorised dealer.
Staying Updated on RBI Guidelines
FEMA regulations and RBI guidelines are subject to change. Staying informed is paramount for avoiding contraventions. Regularly visit the official website of the Reserve Bank of India (RBI) and consult reliable sources for updates and clarifications on FEMA provisions.
Consequences of FEMA Contraventions
Failure to comply with FEMA provisions can result in significant penalties.
- Penalties can be up to thrice the sum involved in the contravention or up to ₹2 lakh if the amount is not quantifiable.
- For continuing contraventions, a further penalty of up to ₹5,000 per day may be imposed.
- If the penalty is not paid within the stipulated time, prosecution can also be initiated. While FEMA primarily treats violations as civil offences, non-payment of penalties can lead to further legal action.
Conclusion: Ensuring FEMA Compliance Through a Practical Checklist
Avoiding FEMA pitfalls requires awareness, diligence, and transacting through authorised channels. By understanding the common areas of contravention and adhering to the FEMA compliance checklist provided, individuals can ensure compliance with FEMA regulations and facilitate smooth and penalty-free foreign exchange transactions. Always seek guidance from authorised dealers for specific queries and stay updated on the latest RBI guidelines to navigate the FEMA landscape effectively.
Article by : Aditya Bhatt
Association: Bhatt and Joshi
Dealing with Delays in FEMA Proceedings: Understanding Your Rights and Seeking Resolution
Introduction
Navigating the complexities of the Foreign Exchange Management Act, 1999 (FEMA) can be challenging, and protracted delays in investigation and adjudication can add to the difficulties faced by individuals and entities. While FEMA itself does not explicitly prescribe strict timelines for the Adjudicating Authority to dispose of complaints or for the Appellate Authority to conclude appeals, this article aims to shed light on your rights in the face of such delays in FEMA proceedings and the avenues available for seeking resolution, drawing upon legal principles and judicial precedents.
The Implications of No Strict Timelines in FEMA
Unlike some other fiscal statutes, FEMA lacks specific limitation periods for initiating investigations into contraventions and also only mandates an ‘endeavour’ to dispose of complaints and appeals within prescribed timelines, such as 180 days for appeal disposal. This absence of strict statutory time limits can, unfortunately, lead to considerable delays in the conclusion of FEMA proceedings, potentially causing hardship and uncertainty for the parties involved. The Enforcement Directorate (ED) can investigate contraventions even for transactions undertaken many years in the past.
Upholding Fair Process and Natural Justice in FEMA Proceedings Delays
Despite the absence of specific time limits, fundamental legal principles, particularly the principles of natural justice, remain paramount in FEMA proceedings. These principles dictate that every authority should exercise its power to investigate within a reasonable period, and undue or inordinate delays can be seen as a violation of natural justice.
Several judicial pronouncements have underscored this point:
- The Supreme Court in State of Gujarat v. Patil Raghav Natha and Ors. observed that where no limitation period is provided, authorities are required to initiate proceedings within a reasonable time, contingent upon the specific facts and circumstances of each case.
- Similarly, in Government of India v. Citadel Fine Pharmaceuticals, the Supreme Court held that even without a prescribed time limit for duty recovery, the Adjudicating Authority is expected to judiciously exercise its powers within a reasonable time, and an assessee can challenge inordinate delays in the issuance of demand notices.
- The Bombay High Court in Shirish Harshavadan Shah v. Deputy Director, E.D. quashed proceedings initiated after a delay of over 22 years under FERA, noting that such delays can severely prejudice the petitioner’s ability to recall relevant facts. The court emphasized that every authority should investigate within a reasonable period, which depends on the case’s specifics, and in this instance, the ED failed to justify the delay.
- In Innovative Tech Park Ltd. v. Special Director of Enforcement, the Delhi High Court set aside a penalty order where a show cause notice was served 13 years after the remittance, holding that penal liability should be sought within a reasonable time, and individuals cannot be penalised for not retaining documents for such extended periods.
- The Supreme Court in Union of India v. Citi Bank, N.A. held that proceedings initiated approximately 9-10 years after the alleged FERA contravention were unfair and would cause prejudice to the respondent, a banking company obligated to maintain records for a specific period.
These judgments highlight the judiciary’s recognition that even in the absence of a statutory limitation, there is an implicit requirement for authorities to act within a reasonable timeframe to ensure fairness and prevent prejudice.
Seeking Resolution for Delays in FEMA Proceedings
If you are facing significant and seemingly unreasonable delays in your FEMA investigation or adjudication, you may have recourse to approach higher courts, typically the High Court, through a writ petition under Article 226 of the Constitution of India. The grounds for such an approach could include:
- Violation of Natural Justice: Arguing that the excessive delay has prejudiced your ability to present your case effectively, recall facts, or produce relevant evidence, thus violating the principles of natural justice.
- Unwarranted Initiation of Fresh Proceedings: As seen in the case of Iqbal Singh Sabharwal v. Union of India & Another, where the Punjab and Haryana High Court quashed fresh proceedings initiated after an earlier finding that no FEMA contravention had occurred and no appeal was filed against that order. This demonstrates that once proceedings conclude with a finding of no contravention and attain finality, the initiation of fresh proceedings on the same matter can be deemed unwarranted.
- Failure to Provide Reasons for Delay: If the Adjudicating Authority fails to dispose of a complaint within a reasonable period, they should ideally provide reasons in writing for the delay. The absence of such justification for a prolonged delay could be a ground for intervention.
When approaching the High Court, you would need to demonstrate how the delay has caused prejudice and why it should be considered unreasonable in the context of your case. The Court will then assess the facts and circumstances to determine whether to issue any directions to expedite the proceedings or even quash them in cases of egregious and unjustified delays.
Conclusion
While FEMA does not prescribe strict timelines for the conclusion of proceedings, the right to a fair process based on the principles of natural justice remains a crucial safeguard against undue delays. Judicial precedents emphasize the obligation of the ED and Adjudicating Authorities to conduct investigations and conclude proceedings within a reasonable timeframe. If you encounter significant and unjustified delays that prejudice your case, understanding your right to a fair process and the option of approaching higher courts for resolution is vital in navigating the FEMA landscape. It is always advisable to seek expert legal counsel to assess your specific situation and determine the most appropriate course of action.
Citations
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Beyond Boundaries: Absence of Limitation in FEMA Enforcement – Discusses the absence of a limitation period in FEMA proceedings and examines judicial precedents addressing delays in enforcement and adjudication.
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Introduction to Investigation & Adjudication under FEMA – Highlights the lack of strict timelines for enforcement under FEMA and outlines the applicable timelines for filing appeals.
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CWP_21532_2008.pdf – Illustrates concerns regarding the unwarranted initiation of fresh proceedings despite the matter having attained finality.
Article by : Aditya Bhatt
Association: Bhatt and Joshi