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Resolutions of Iftaa' Board

Resolution No. (171): "Ruling on Organized Tawaroq Sale Carried out by some Islamic Banks"

Date Added : 27-10-2015

Resolution No. (171) (3/2012) by the Board of Iftaa`, Research and Islamic Studies: "Ruling on Organized Tawaroq Sale Carried out by some Islamic Banks"
Date:  29/4/1433 AH, corresponding to 22/3/2012 AD.

 

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

On the above given date the Board reviewed the following question

What is the ruling of Sharia on organized Tawaroq sale carried out by some Islamic banks?

In modern terms, in this type of sale the purchaser of a commodity in installments may re-sell it in cash amounts less than the purchase amount. The commodity can also be sold either by the purchaser`s deputy, or the financer.

Organized Tawaroq sale carried out by some Islamic banks is a form of evading usury (Riba), because the real purpose behind it is collecting a sum of money against an increase, where the bank carries out sham purchase of certain commodities, then sells them to the purchaser in installments. Afterwards, the bank re-sells them to a third party against a cash amount which is less than the first amount, then gives that cash amount to the purchaser in installments, but the bank obliges the latter to pay off the first amount.

In terms of Islamic Sharia, this is considered a usurious loan, even though it seems a form of Tawaroq sale from the outside.

The Messenger of Allah (PBUH) said: "The deeds are considered by the intentions, and a person will get the reward according to his intention. So whoever emigrated for Allah and His Messenger, his emigration will be for Allah and His Messenger; and whoever emigrated for worldly benefits or for a woman to marry, his emigration would be for what he emigrated for." [Agreed upon].

Therefore, it is a prohibited a contract, because it is a form of evading prohibited usury. Omar Bin Abdulaziz used to say about Tawaroq: "It is the brother of usury (Riba)." This is based on the following saying of the Prophet (PBUH): "Don`t you imitate the Jews who made the unlawful lawful by resorting to the meanest of tricks." [Ibtaal Al-Heyal/pp.47].

On its part, the Board is of the view that organized Tawaroq carried out by some Islamic banks is forbidden. This is confirmed by resolution no. (179) (5/19) of the International Islamic Fiqh Academy/2009.

The Board, advises Islamic banks and institutions to adhere to the Sharia approved forms of investment and financing, and to avoid suspicious tricks, in compliance with the legal rules that realize the objectives of Sharia. And Allah Knows Best.

 

 

Chairman of the Iftaa` Board 
The Grand Mufti of The Hashemite Kingdom of Jordan :His Eminence , Abdull-Kareem Al-Khasawneh
Vice Chairman of the Iftaa` Board:  His Eminence Dr. Ahmad Hilayel
Dr.Yahia Al-Botosh/member
His Eminence :Sheikh Sa`id Al-Hijawi/member
Dr. Mohammad Khair Al-Essa/member
Dr. Wasif Al-Bakkri /member
Dr. Mohammad Al-Qhodat/Member
Dr.Mohammad Al-khalayleh/member
Prof. Abdulnasir Abulbasal/member
Dr.Mohammad Al-Zo`bi/member

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Summarized Fatawaa

What are the Sunnahs and etiquettes recommended for the person offering the Udhiyah?

 
In the Name of Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
 
There are several Sunnahs (prophetic traditions) and etiquettes that are highly recommended for the person offering an Udhiyah (sacrificial offering) to observe:
 
First:
It is a Sunnah for anyone intending to offer a sacrifice to refrain from cutting or removing any of their hair or nails once the first ten days of Dhul-Hijjah begin. This is based on the statement of the Prophet (peace and blessings be upon him): "When the ten days [of Dhul-Hijjah] begin and one of you intends to offer a sacrifice, let him not touch any of his hair or skin." (Narrated by Muslim)
 
However, if someone does happen to remove any hair or nails, they have not committed a sin, and their sacrifice remains perfectly valid.
 
Second:
The person offering the sacrifice should ideally slaughter the animal themselves. If they are unable to do so, they should at least witness its slaughter. This is drawn from what our Master, the Messenger of Allah (peace and blessings be upon him), said to Lady Fatima (may Allah be pleased with her):
 
"Stand up and witness your sacrifice, for with its very first drop of blood, every sin you have committed will be forgiven." (Narrated by Al-Tabarani in his Mu'jam, Al-Hakim in his Mustadrak, and Al-Bayhaqi in his Sunan)
 
Third:
Face the Qiblah (the direction of prayer) at the time of slaughtering, as the Qiblah is the most honorable of directions.
 
Fourth:
Pronounce the name of Allah (Tasmiyah) at the moment of slaughter by saying: "Bismillah ar-Rahman ar-Rahim" (In the Name of Allah, the Most Gracious, the Most Merciful). Even if one forgets to say it, the meat remains lawful (Halal) to eat. Allah, Blessed and Exalted is He, says:
 
"So eat of that [meat] upon which the name of Allah has been mentioned." (Al-An'am: 118)
 
It is also recommended to send blessings upon our Master, the Messenger of Allah (peace and blessings be upon him), and to follow it with the Takbeer (Allahu Akbar).
 
Fifth:
Supplicate for acceptance by saying: "Allahumma hadhihi minka wa ilayka, fa-taqabbal minni" (O Allah, this is a blessing from You and is offered back to You, so please accept it from me). This means: This sacrifice is a blessing that originated from You, and I am offering it to draw closer to You. And Allah the Almighty Knows Best.

Must a woman seek her husband's permission to fast a make up fast (qada)?

● If there is ample time to make up for the missed fasts, a woman should seek her husband's permission before fasting.
● However, if the time is running out—such as when only the remaining days of Sha'ban are sufficient to complete the qada—she does not need his permission and must fast, because Allah’s command takes precedence over the husband's consent.

Is it permissible to give multiple mudds (portions) of fidyah to a single person?

Yes, it is permissible to give multiple mudd of fidyah to a single person, because each day of fasting is considered an independent act of worship.

Does undergoing an endoscopy during the day in Ramadan affect the validity of fasting?

Undergoing an endoscopic procedure during the day in Ramadan—whether through the mouth, nose, front private part, or back private part—invalidates the fast.
Whoever undergoes such a procedure must refrain from eating and drinking for the rest of the day out of respect for the sacred month and make up for that day after Ramadan.

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