Disposing of Ribaa

2-11-2004 | IslamWeb

Question:

One company dealing a Ribaa business and take money from people, and give them Ribaa (profit) monthly 10% - 20%, different to different clients, their mission is not take money and ran away, but suddenly government closes it, now what can be done to people, either people have to return money back to company which they took as profit (Ribaa), and take remaining money, or they can collect all the remaining amount, and the profit the have took is vanished.

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Answer:

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. We ask Allaah to exalt his mention as well as that of his family and all his companions.

 

It is not permissible to deal with a transaction in which there is Ribaa (interest and/or usury). Every Muslim is aware that it is established in Islam by absolute evidence and no one can deny, that Ribaa is forbidden. Its seriousness and dangers have already been discussed in Fatwa: 82049.

Whoever is involved in such a transaction has to repent to Allaah and seek His forgiveness about this abominable act. As regards the interest a person gets from a transaction in which there is Ribaa, it is not permissible to possess it. It is only permissible to possess the capital money. Allaah says (interpretation of meaning): {…you may have your principal-[thus] you do no wrong, nor are you wronged.}[2:279]. As regards interest, one should not leave it for the investor, instead he should take it and spend it for the general benefit of Muslims, like building hospitals, orphanages, or it should be given to the poor and needy, etc. 

Allaah knows best.