Assalamu Alaikum Mufti Saheb. I have got an investment option where in i have to invest Rs.1,30,000 and would get a return of Rs.7500 pm. for five years and Rs.50000 at the end of five years. This is the investment plan. They say that our money will be invested in construction of apartments and i’m the temporary owner of 20 Square feet in a flat for five years for which we are getting the rent of Rs.7500 p.m for 5 years. As per my knowledge fixed income plans are not allowed. This plan also offers fixed income but they say and mention clearly that it is a rent which u receive hence it is fixed and it is obvious that rents are fixed. My question is 1) Can i invest money in this plan? 2) If yes, what if they invest our money in insurance, banks and like without informing us which is not allowed in islam. Hope my question is clear and I would be greatful if solution provided in accordance with Quran & Hadees.
Answer
(Fatwa: 1098/847=H/1430)
You already know that investing in the plan and getting extra fixed amount are interest and it is obviously haram (forbidden); therefore you must not invest therein.
(2) It also carries the same ruling.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband