بسم الله الرحمن الرحيم
It is mandatory to give the zakah amount in the complete possession of some poor and needy ones as zakah will not be paid except it. Hence in the question mentioned above it is not lawful to erect building by collecting zakah money and make it an institution and impart the education of Quran there. Zakah shall not be paid in this way.
Allah knows Best!
Darul Uloom Deoband
This answer was collected from the official ifta website of Darul Uloom Deoband in India.