India Tomorrow
NEW DELHI: Experts at a seminar titled “A Comparative Analysis of the Individual and Collective Systems of Zakat” advocated for a hybrid Zakat model, which is a combination of individual and collective zakat collection and management systems. They stated that in countries like India, neither an individual nor an institutional zakat system alone can achieve the desired results.
The seminar, organised by the Indian Centre for Islamic Finance at the Indian Institute of Islamic Studies on Tuesday, brought together scholars, practitioners, and community leaders to deliberate on one of the most critical socio-economic instruments in Islam. The discussion focused on the strengths, limitations, and risks associated with individual and institutional models of Zakat, especially in the context of Muslims living as a minority in India.
The keynote address was delivered by Mufti Abdul Kadir Barkatulla, a noted Islamic scholar and Shariah advisor with decades of experience in Islamic finance, Zakat management, and charity auditing across several countries. Presenting a comprehensive analysis, Mufti Barkatulla underlined that the obligation, objectives, and moral foundations of Zakat are already well established in Islam. The real challenge, he said, lies in understanding how Zakat should be organised and deployed effectively in today’s complex social, political, and economic environment.
Placing the issue in historical context, Mufti Barkatulla traced the disruption of Islamic social and economic institutions to colonial rule, particularly British governance in India, which systematically dismantled community-based welfare structures over more than a century. He noted that even decades after independence, the impact of this disruption continues to be felt. Referring to studies such as the Sachar Committee Report, he observed that Muslims in India still lag behind on key socio-economic indicators, despite progress in education, housing, and social awareness. Rebuilding strong collective systems, he argued, is, therefore, a gradual and demanding process.
While acknowledging a widespread desire for unity within the Muslim community, Mufti Barkatulla pointed out that Zakat practice in India remains largely individualistic. Islam, however, places strong emphasis on collective action, a principle reflected in congregational worship and communal responsibilities. This tension between individual initiative and collective need, he said, lies at the heart of contemporary debates on Zakat.
Drawing from his professional experience, Mufti Barkatulla stressed that Zakat, Sadaqah, Kaffarat, and Awqaf together constitute a vital part of the Muslim socio-economic framework. Like any economic system, Zakat requires planning, administration, auditing, and governance. Expecting zero administrative cost is unrealistic, he said, warning that unstructured charity often leads to wastage, duplication, inefficiency, and even corruption.
He made a clear distinction between institutionalisation and politicisation of Zakat. While several Muslim-majority countries operate semi-independent Zakat bodies, government control has often resulted in misuse or political interference. In minority contexts like India, the risks are even greater, with charitable and madrasa accounts vulnerable to sudden scrutiny or freezing. For this reason, he advocated independent, decentralised, and diversified Zakat institutions rather than highly centralised models.
Mufti Barkatulla then offered a detailed comparison between individual and collective systems of Zakat. Individual Zakat, he said, has undeniable strengths, immediacy, flexibility, personal trust, privacy, minimal overhead costs, and the preservation of dignity through direct giver-recipient relationships. It allows swift responses during emergencies and nurtures a strong spiritual bond. However, its limitations include fragmented impact, lack of data, duplication of aid, and uneven distribution. He cited cases where some students receive multiple scholarships from different donors, while others remain completely unsupported.
Collective or institutional Zakat, when professionally managed, can deliver wider and more sustainable outcomes. It enables systematic poverty reduction, anonymous and dignified assistance, transparent processes, and strategic allocation toward education, skill development, healthcare, and debt relief. Such systems also allow Shariah compliance through qualified scholars and auditors, and are better equipped to respond to large-scale crises.
At the same time, Mufti Barkatulla cautioned that collective Zakat carries risks rather than inherent disadvantages. Bureaucratic delays, high administrative costs, nepotism, regional bias, political and legal vulnerabilities, and the loss of personal connection were among the concerns he highlighted. Over-centralisation, he warned, can expose the entire system to systemic failure.
Concluding his address, Mufti Barkatulla rejected both extreme individualism and rigid centralisation, advocating instead a hybrid model. This approach, he said, should combine individual giving with transparent, decentralised, professionally managed institutions, supported by technology such as fintech platforms and digital portals. Trust-building, social capital, and consensus-based policies would be key to strengthening collective systems over time.
While presiding over the programme, Abdul Jabbar Siddiqui, Secretary of Zakat Center India, emphasised the need to transform community concerns into structured, knowledge-driven action. Highlighting the work of Zakat Centre India, he said institutionalised Zakat, when backed by transparency, Shariah auditing, and strong monitoring, can match global best practices seen in the UK and the US. Siddiqui stressed that poverty is multidimensional and cannot be addressed by money alone, arguing that sustained support, development initiatives, and employment generation are essential to empowering communities and reshaping public perceptions of Islam.
Earlier, H. Abdur Raqeeb, General Secretary of Indian Center for Islamic Finance (ICIF) while highlighting the role of the center emphasised on the need of collection of Zakat, awareness, creation of wealth and distribution to serve the purpose of the Islamic concept and principles of Zakat.
