There is an authority which allots lands. This authority has many conditions, for example a person must have low income. Like this the authority has many conditions. Only those persons who satisfy all the conditions given by the authority are eligible for land allotment. Only those persons who satisfy all conditions given by the authority must apply for land allotment. A person has purchased a site with only haram money. This person does not satisfy any condition of authority and he knows that he does not satisfy any condition of authority. So this person is not eligible for land allotment. But this person applied for land allotment and a land was allotted to him by the authority. This person sold the land allotted to him by the authority. This person constructed a house with the money got by selling the land and the house was constructed on the site which was purchased by haram money. This person has given the house for rent. So rent of house is halal or haram? Please reply.
بسم الله الرحمن الرحيم
(Fatwa: 127/146/L=02/1437)
The rent shall be halal but it is necessary for the person to return the amount if he has taken unlawfully through theft, bribe or interest. However, if he has received it as interest from a bank then he should give in charity that much amount to poor and needy ones without the intention of reward.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband