I am getting a house on heavy deposit. Heavy deposit means giving one big amount to the owner of the flat till the duration of the contract. I will be paying Rs.5L to the owner and then every month I will be giving the maintenance cost Rs.2000/- of the flat to the society. In my case I will also be giving additional amount Rs. 2000/- to the owner of the flat so the total amount I will be paying monthly to the flat owner will be 2000+3000=5000 and Rs.5l as one time deposit. When I plan to vacate the house the owner will return the 5L back to me as it is without any profit or interest. Is it permissible for me to take the house on heavy deposit? This is not pagdi system.
Answer
(Fatwa: 1198/1198/M=1433)
Yes, this is pagadi system and it is not right. If you are in need of house and it is inevitable to pay huge deposit then you may make some changes in this system that you should fix a suitable deposit for the whole period of ijarah (tenancy) which is considered as advanced rent and all the rulings of ijarah should be applied to it and the nominal monthly rent should be fixed separately. For detail see Fiqhi Maqalat Vol 1.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband