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Does the profit from investing a friend’s money belong to the lender or the investor?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
I need to ask if a person gives some money to his friend to keep it for some time and his friend invests those money in a business and accumulates a profit so the profit belongs to the person whose money is or the person who invested?

بسم الله الرحمن الرحيم

(Fatwa: 830/818/N=10/1436)

If he had kept the amount with his friend as a trust and the friend used it in the business without his permission then he did treachery and the amount became due on him and in such a case the profit shall not be pure for him he should give the profit in charity. And this profit shall not go to the owner of the amount as the amount was not invested in the business on his liability, he shall only be entitled to receive his capital amount.
والمختار أنه لا يحل مطلقا كذا فى الملتقى و لو بعد الضمان هو الصحيح كما فى فتاوى النوازل (در مختار مع الشامى 9:277 مطبوعه: مكتبه زكريا ديوبند)’ و مع هذا لم يرتضه الشارح فأتى بما قيل لهما فى الهداية: قال مشايخنا: لا يطیب قبل أن يضمن وكذا بعد الضمان بكل حال وهو المختار لإطلاق الجواب فى الجامعين والمضاربة أي: كتاب المضاربة من المبسوط ، وانى على الدور ، قال الزيلعي: ووجھه أن بالنقد منه استفاد سلامة المشري وبالإشارة استفاد جواز العقد لتعلق العقد به في حق القدر والوصف فيثبت فيه شبهة الحرمة لملكه بسبب خبيث (شامى حواله بالا).

And if the case is something else then write the complete detail and submit the query again.

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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