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Subject : Ruling on Leasing an Estate for Unlawful Acts

Fatwa Number : 2786

Date : 02-04-2013

Classified : Forbidden Money

Fatwa Type : Search Fatawaa

Question :

A previous administration of a charitable organization made a lease for 5 years to a financing company that deals with usurious transactions. Are we (The new administration's members) accountable for this? since we weren't members of the administration at the time of concluding the contract, yet we still deal with the aforementioned company due to the nature of our job?

The Answer :

All perfect praise be to Allah, The Lord of The Worlds, and may His peace and blessings be upon our Prophet Muhammad and upon all of his family and companions.

Financing companies are dealing with unlawful transactions (usurious transactions) ; thus offering a lease for them is prohibited due to their unlawful acts for Allah, The Exalted said (What means):" but help ye one another unto righteousness and pious duty. Help not one another unto sin and transgression, but keep your duty to Allah. Lo! Allah is severe in punishment." [Al-Maidah/2].

Therefore, if you (Questioner) haven't be fully acquainted with the usurious loans given by the company, then you are free from the liability as well as your fellow members, since you have nothing to do regarding leasing it; however, you are obliged to advise them to avoid committing sins and clarify that the lawful trade exists only in trade through Murabaha. And Allah knows best.





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