Muzaffarnagar Baithu Rahma project is a post-violence Internally Displaced Persons (IDP) rehabilitation program successfully implemented by the IUML party. Taking inspiration from Kerala model of people funded housing project, Muzafar Nagar Baithu Rahma project provided more than sixty houses to the riot displaced people from Muzafarnagar and its adjacent districts. The houses are located in Manthwara village of Muzafarnagar district. The village people are mainly daily wage employees in various sugarcane factories and they had given, despite their own financial backwardness, refuge to many riot affected people from other villages. The mud hut houses and unhygienic surroundings have created an un-healthy living atmosphere where minority communities lived and endured in endless misery.   The Baithu Rahma, rehabilitated those victims in new homes and provided basic material support.
The Muzaffarnagar and Shamli districts of Uttar Pradesh have witnessed worst riots in the post Independent period and many poorer people have been forced to run from their ancestral homes. The barbaric crowd butchered, raped innocent people out of sheer hatred. Both Central and State government mechanism failed to provide adequate material and other support to the riot affected and the people from minority community were compelled to go through very inhuman conditions in the camps. The women, children, and elderly people were the worst affected sections among the victims. The rape was used as a weapon and hence women were primary target. During the 2013 winter, many infants and toddlers died in the camp due to harsh winter.
Though, the Arabic word Baithu Rahma, may be a new word for the locals, its meaning were still conveyable. The House of Mercy, provided a new life to many people who were displaced from their dream home and surrounding to a new world.
On 11th May 2017, Panakkad Syed Hiadarali Shihab, brother of late Panakkad Syed Muhammadali Shihab, handed over sixty one house to the people of Muzafarnagar.

Baithu Rahma literally means ‘House of Mercy’. It is a social welfare program initiated by IUML Malappuram district committee to provide housing for poor people irrespective of cast, religion, and community in Kerala. These houses are constructing as a commemorative centres of Panakkad Syed Mohammedali Shihab Thangal, who was one of the prominent religious leader in Kerala & Former president of IUML Kerala state committee.
In 2011, Malappuram District committee of IUML has planned to construct 20 houses for poor people for the memorial for Panakkad Syed Mohammedali Shihab Thangal and named this project as “Baithu Rahma (House of Mercy). However, the positive responses from the public and supporters got the popularity for this project and decided to expand this project. In September 2015, 7000 houses have been handed over to the poor and the target rose to 10000 houses.

The scheme was initiated in order to help those poor families to own a house who had their own piece of land but could not afford construction of a house. The scheme envisaged constructing a house consisting of one bedroom plus hall, a kitchen and bathroom. Currently, it costs Rs. 7 to 8 lakh in the State. Criteria for selection of the individuals was economically underprivileged status rather than religious or community affiliation. In one instance, a Hindu recipient woman wanted to perform the rite of Grihaparvesham by lighting a traditional Kerala lamp. The leaders insisted that she must do whatever she thought was auspicious by her own faith. She lit the Kuthuvilakku (lamp) while accepting the keys and entered the house.