The Supreme Court of India has delivered a significant interim order concerning the Waqf Amendment Act 2025, refusing to stay the law in its entirety but putting on hold certain key provisions. This ruling addresses petitions challenging the Act, with some claiming it leads to a "creeping acquisition" of Muslim properties, while the government defends it as necessary to counter encroachment. The court's decision balances the need to regulate Waqf properties with concerns about potential overreach and discrimination.

One of the most notable aspects of the ruling is the temporary suspension of the clause requiring a person to be a practicing Muslim for at least five years before dedicating property as Waqf. The court acknowledged concerns that this provision could lead to arbitrary application without a clear mechanism for determining religious practice. This stay will remain in effect until state governments frame rules to ascertain religious practice over five years.

Another key provision put on hold is the one allowing a government-designated officer, such as a District Collector, to decide disputes regarding whether a Waqf property encroaches on government land. The court found that allowing executive officers to adjudicate citizens' rights could violate the separation of powers. The court has directed that a Waqf cannot create any third-party rights in the property while adjudication is pending. This means that disputed Waqf land will remain protected until the Waqf Tribunal and higher courts decide the title.

Regarding the inclusion of non-Muslims in Waqf bodies, the court did not stay the provision allowing their nomination to Waqf Boards. However, it clarified that, as far as possible, the ex-officio chairperson of the Board should be a Muslim person. Furthermore, the court capped the number of non-Muslim members, stating that the Central Waqf Council should not have more than four, and State Waqf Boards no more than three non-Muslim members.

The Supreme Court clarified that its observations are prima facie and will not prevent parties from further challenging the Act's validity. The court emphasized that striking down a statute is reserved for the rarest of cases, with the presumption always in favor of a statute's constitutionality. The ruling also addressed the applicability of the Limitation Act, with the court not staying the provision that removes the previous exemption for Waqfs, meaning legal claims against encroachment must be made within a specific period. The court observed that this application removes a discrimination that existed earlier.

The Waqf Act of 1995, which the 2025 amendment seeks to modify, defines Waqf as the endowment of movable or immovable property for religious, pious, or charitable purposes under Muslim law. The Waqf Amendment Act 2025, was introduced in the Lok Sabha on August 8, 2024. It empowers the Central Government to create rules for Waqf registration, auditing, and accounts. The Act incorporates recommendations from the Joint Parliamentary Committee (JPC), aiming to remove inequality, introduce gender equality, and promote sectarian inclusivity.