Answer
To shake hands and hug one another on happy occasions is Mubaah (permissible). The general principle of a Mubaah act is not to regard the act as compulsory as that projects a wrong image of Deen. Furthermore, people should not regard the meeting on the day of Eid as compulsory and an inseparable part of the occasion.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai
FATWA DEPT.