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Is the following business income halal?

Answered as per Hanafi Fiqh by Askimam.org

 I have posted a question on 28/10/2014 which is not yet answered. It will be of great help for me if you answer our query so that we can take some important decisions.  Reposting the question for your kind consideration..

Assalamu alaikum wa rahmatullahi wa barakathuhu.
May Allah bless and give barakath in the life of our
beloved ulama who arethe guiding light of this ummah in this worst times.

My question is regarding the halal/ jaizah of earning in a
particular business. I am a young man from india and I
follow shafi madhab.

1)a business group ( doing retail of textiles, home
appliances, fancy items, retail and wholesale of jewellery)
by muslims in our locality get cash as share/ deposit from
people and is paying monthly profit. It is said in
the beginning itself that they will give you INR 2000 for
every INR 100,000 .We can withdraw whatever money we
have deposited at any time with a prior notice.

The totalcapital or the percentage of our share is not known.
The business is expanding and when a new project is on
card they will themselves reduce the profit given, for
example, from INR 2000 to 1500 or 1000 per 100 000 citing
the reason that part of the profit is directed to the new
project and that we will be given share in the new outlet
automatically. Thereafter that particular amount per lakh
rupees per month is given regularly as profit, which we
can either receive in cash by hand or remain in an account
on our name with the company itself , that can be
accessed by us any time. We can withdraw whatever
money we have deposited nothing more/less irrespective
of the fact that their business expanded much over
these years. Nothing is mentioned regarding the case of
loss in business. They are also good muslims, do namaz,
hajj, umra etc. In fact certain outlet even have designated
place for namaz also. They also have consulted
local ulema for doing this business and they endorsed it
as jaizah. Certain ulema say its not jaizah. Please give me
a detailed description of the shara-e status of above
business with relevant ayayh/hadiths also.

2)The same business group mentioned above also get gold
as deposit and give a monthly profit. We can withdraw whatever
gold we have deposited later at any time with a prior
notice. For ex if I approch them with 100 sovereign
(800gram) gold jewellery, they will take that jewellery at
that days market rate and will give us a bank check for
the equivalent amount. Also they give us a printed receipt
stating the weigt of deposited gold and its cost on that
day. Therafter we will get monthly profit. The condition is
that the company will take a part say 50% from our profit
since we are not actively involved in business and only the
remaining will be given to us as monthly profit.

We can withdraw whatever weight of gold jewellery we have
deposited at any time irrespective of the price of gold
later. That is 100 sovereign of gold jewellery can be taken
from their shop. Here the monthly profit is not fixed, it
varies d epending on sales and market rate of gold.(varies
in the range ofINR 1000 to 1500). Here also the
proportion of our share, total capital etc are not
revealed.Nothing is mentioned regarding the case of loss
in business.Here also many ulema are endorsing it as
jaizah while another state it not jaizah because of these

1) its not gold that is in business. Gold has been
converted to money. So I can’t get back that same
amount gold again. I can take back only the
cash equivalent to the gold I deposited. Rest is interest.
2)the company should give profit proportionate to the
gold I deposited. Also it is not permissible for the
company to take a part from my profit even if I agree to
it and that amounts to interest. 3) company should
mention regarding sharing of loss also. Many muslims
pious and daees are doing this and living prosperous life.
Some ulama endorse it also. Asthaghifrullah. I am very
frightened to say this. Not trying to find fault with any.
Myself not good enough.But to convey you, the respected
darul ifta ulama the reality and confusion I am suffering.
Dear respected ulama, please give me a detailed
description of both the above scenario with relevant ayath/hadiths. I am not to multiple ulama consultation,
but since there are different opinions I would like to have
a final opinion from an authentic source like yours.

I have to convince my parents also. My family(parents) is
involved in this business in either form as cash and gold.
One more thing if your fatwa is in the negative, that is
this business is haram then 1)can we take back our
original deposited cash and gold? 2)what will be my
family’s status for we have been feeding this all these
years? What will be the status of our amals and dua if
our food went haram? What we have to do in repentence?
3) some amount of the accumulated profit is with our
hand as cash and remaining with the business firm itself
in our account. Can I use the already earned profit? i and
my wife are dependent on that profit (from gold deposit)
since I am not working now as I prepare for an upcoming
post graduate entrance exam. (I can’t borrow from my
parents since they also source from same the business by
depositing both gold and cash, have to get debt from
someone outside then.) 4) if above, that is qustn 3 is not
possible what to do with the profit i already earned? 5) if
my family, na oodubillah ,rejects to leave this business
despite your fatwa that it is haram/not jaizah what should
I do?

( I am involved in this business by gold deposit only
and is ready to do according to your fatwa, but my
parents are involved in this by both cash and gold
deposit. I hope they will also follow) I and wife live with
my parents.Can I then eat from my home?
Sorry for being quite lengthy.Include us also in your

May Allah bless you.


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.  

The information you provided about the investment schemes is not sufficient for us to issue a ruling. If you can obtain a copy of the contract that governs the investment scheme, we will have better insight on the issue.

You state that there are differences of opinions among the ulamaa on the Shri’ah position of the investment schemes.

We advise you to refer to the Darul Iftaa of Madrasah Ta’leemuddeen Dabhel in the state of Gujrat. They will be in a better position to advise you as all the schemes you refer to are in India. Obtain the actual contract and send it to Darul Iftaa Dabhel for guidance. Follow whatever ruling the Darul Iftaa of Dabhel issues.

And Allah Ta’āla Knows Best

Muhammad Haris Siddiqui

Student Darul Iftaa
Melbourne, Australia

Checked and Approved by,
Mufti Ebrahim Desai.

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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