Flat taken in 2008, the builder has not constructed the building till now, we have paid him rs.300000, now the prices have gone up. Last year in 2012 he said he will be returning the money and I said since the prices have gone up in the area. I asked he should pay me the value of gold to which he agreed, now the price of gold sat the time purchase, then now is up which worth around rs.50000. Please advise if this transaction is right or wrong?
بسم الله الرحمن الرحيم
(Fatwa: 1093/1093/M=9/1434)
In the case mentioned above, you may take the same amount from the builder which you have given to him. The additional amount is interest and it is unlawful to demand the same, though the value decreased.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband