New Delhi: Scholars and community leaders gathered at the Indian Institute of Islamic Studies for a programme examining individual and collective systems of Zakat. The event, organised by the Indian Centre for Islamic Finance, focused on how Zakat practices need careful structuring within the context of Muslims living as a minority in India.
Mufti Abdul Kadir Barkatulla delivered the keynote address. He said Islamic teachings have clearly defined the obligation and purpose of Zakat. The present challenge involves organising and deploying Zakat in ways suited to current social and economic realities. He traced the weakening of Muslim welfare institutions to the colonial period, when community based systems faced systematic disruption. He noted that the impact remains visible today, with studies showing Muslims continue to lag on several socio economic indicators.
Mufti Barkatulla observed that Zakat practice in India largely follows an individual approach, even though Islam places strong emphasis on collective responsibility. This gap, he said, shapes present debates on Zakat management. Drawing from his experience in Islamic finance and charity auditing, he explained that Zakat, Sadaqah, Kaffarat, and Awqaf together form a structured socio economic framework. Such systems require planning, administration, and oversight. Expecting charity to function without administrative cost, he said, leads to inefficiency and misuse.
He differentiated institutionalisation from politicisation of Zakat. In several countries, state control has led to interference and misuse. In minority settings, centralised systems face added legal and regulatory risks. He therefore supported independent and decentralised institutions rather than concentrated control.
Comparing models, he said individual Zakat offers speed, flexibility, privacy, and direct trust between giver and recipient. It also allows quick response during emergencies. At the same time, it suffers from fragmented impact and uneven distribution. He cited examples where some students receive multiple scholarships while others receive none.
Professionally managed collective Zakat systems, he said, allow strategic use of funds for education, healthcare, skills, and debt relief. They also support transparency and Shariah oversight. Risks exist, including delays, bias, and loss of personal connection. Over centralisation, he warned, exposes the system to failure.
Mufti Barkatulla supported a hybrid model combining personal giving with transparent, decentralised institutions supported by technology and strong governance.
Abdul Jabbar Siddiqui of Zakat Centre India said institutional Zakat backed by transparency and auditing aligns with global standards. He stressed that poverty demands long term support beyond cash aid. Earlier, H Abdur Raqeeb of the Indian Centre for Islamic Finance highlighted awareness, wealth creation, and structured distribution as core needs.
