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Subject : Dubious Three-Party Einah Sale

Fatwa Number : 609

Date : 20-04-2010

Classified : Forbidden Sales & Transactions

Fatwa Type : Search Fatawaa

Question :

I work at the Islamic Charity Center Society and we have a portfolio, which deals in Murabaha sale. My colleague bought a joint transport vehicle (Bus) from me through this portfolio. However, I spent that amount, then wanted to purchase a vehicle, so I applied to the portfolio to buy that same bus which I had sold to my colleague and for the same price. Is this permissible or considered Einah sale (Buy-back sale)?

The Answer :

Praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

If this sale transaction was concluded without the objective of obtaining cash, then it is permissible because a person isn`t prevented from repossessing the commodity that he had sold. But, if the sale was intended for obtaining the cash, then this is dubious, however, we don`t command you (Asker) to terminate this sale contract if it had already been concluded. Nonetheless, we recommend that you make repentance and never redo what you did. And Allah the Almighty knows best.

Note: Einah sale (buy-back sale) refers to the purchase of something for the mere purpose of reselling it immediately to its original seller. The objective of this sale is to obtain cash in an apparently legal way and not the real acquisition of commodity.



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