Waqf institutions in India have historically served as socio-religious pillars that support education, health care, and welfare services within the Muslim community. However, persistent governance failures under the Waqf Act, 1995 including inaccurate property documentation, encroachment, political interference, and weak accountability mechanisms have significantly undermined the developmental potential of waqf properties. To address these deficiencies, the Government of India enacted the Waqf (Amendment) Act, 2025, subsequently renamed the UMEED Act, 1995, presenting one of the most comprehensive governance transformations in the waqf sector. The amendment introduces structural reforms such as full-scale digitisation, enhanced enforcement measures, and inclusion of non-Muslim professionals in administrative bodies, while abolishing the legally contentious concept of “waqf by user.” This research article presents a comparative study between the Waqf Act, 1995 and the UMEED Act, 1995 by critically analysing legislative intent, administrative impact, constitutional implications, and community responses. Through a doctrinal and secondary data-based approach, the study reveals that while the amendment strengthens legal clarity and financial transparency, it also raises significant concerns related to religious autonomy, minority rights, and trust in State institutions evidenced by widespread protests and ongoing litigations challenging its constitutional validity. The article concludes that the UMEED Act has the potential to modernise and secure waqf assets for community welfare, but its success will ultimately depend on inclusive governance practices, effective stakeholder engagement, and judicial clarity from the Supreme Court. This comparative evaluation thus underscores the delicate balance required between State regulation and minority institutional autonomy, recommending that future reforms prioritise collaboration, transparency, and socio-religious sensitivity to achieve sustainable outcomes.