I have money and other properties, part of which was derived from interest based transaction, like having a loan from the government, which is Haraam in Islam? What should I do with this property? Shall I distract it, burn or throw it away? What will I do with this property?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

If a person dealt with Ribaa (interest and/or usury), he is first obliged to sincerely repent to Allaah fulfilling all the conditions of repentance mentioned in Fatwa 87903, because Ribaa is one of the great major sins which requires the person who is involved in it to repent to Allaah.

If he had borrowed money, then he has to repent and repay the loan without any interests if possible. The properties that one obtains with a loan become his property and he is not obliged to get rid of them [such properties]. It is not permissible for him as well to ruin or burn them, as this is causing the loss of money [without any benefit].

In case he had lent money [with interest], then he is obliged to repent and take his capital money only without any interest, i.e. it is not permissible for him to take any interest on his capital money; Allaah Says (what means): {…but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).}[Quran 2: 279]

If he took any interest on his capital money, he is obliged to give it back to its owners as it is money that is taken from their owners illegally, so one has to give it back to them. If one has obtained any property with interest, he is not obliged to give these properties to the debtors and the interest that he had taken from them remains an obligation on him to give it back to them.

As regards destroying or burning properties, this is wasting wealth [without any right] and this is not permissible.

Allaah Knows best.