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Fatwa CenterRuling on financial certificates and how to get rid of interest
Question
AsSalamOAlaikum-Warehmatullahi-Wabarakatuhu, My father was a very successful businessman in his times but wasn't religious at all. He bought some National Saving Certificates from "National Saving Centre" which is one popular government institution in Pakistan. He bought following certificates: (i) Behbood Saving Certificates (BSC) (ii) Regular Income Certificates (RIC) Against RIC, this institute gives fixed profit about which I am sure it is interest against money and it is Haraam. Against BSC, they give profit against investment of money and this profit varies every month depending upon the profit earned. I am sure that profit against RIC is Haraam because it is fixed. I want to know if the profit against BSC is also Haraam or not because it is not fixed and varies every time but usually it does not go in negative (loss). There are several religious scholars who declare profit against BSC Halaal but I want to seek advice from religious scholars who understand the computation complexities of such transactions and can advise in the light of Qur'an and the Sunnah of the Prophet. My father died few months ago and now I have an accessibility to this money. I can calculate the profit earned against these certificates and can give away this "Haraam" money to get rid of it. Please advise, what shall I do with this money? Can I donate it to Da'wa centers, give them to the poor, donate it to any charity organization or what? Will it be allowed to donate this money for a good cause because it is not earned through legal means. Also, I do not know if it is necessary to give away this money because this money is inherited and I was in no way involved in the earning of this money. Please advise in the light of Qur'an and the Sunnah of the Prophet.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
First of all, may Allaah The Almighty reward you for being keen on consuming what is lawful and avoiding committing what is forbidden.
As regards what you mentioned, then the answer starts from where you stopped. The preponderant opinion in our view,
which corresponds to the justice and rules of inference, is that the person who inherits ill-gotten money is not permitted to take it and he is not permitted to benefit from it even if he is not the one who earned it directly in a forbidden manner. Rather, he is obliged to get rid of it by spending it on the general welfare of the Muslims and give it to the poor and destitute. Even if its amount is not known, one has to endeavor and estimate the amount.
As regards the saving certificates that your deceased father had bought, then what is forbidden from it, which is the Regular Income Certificates (RIC), you should get rid of its interest and benefit from its capital money only.
As regards the Behbood Saving Certificates (BSC), that have a variant income; some scholars issued a Fatwa that it is permissible to invest in it. Thus, it is permissible to benefit from its capital money as well as from its profit. Nonetheless, we cannot give a detailed ruling about it because you did not clarify to us its terms and conditions and the nature of the contract between the investor and the field of investment.
Indeed, we have clarified the conditions of a lawful investment in Fatwa 86125.
As regards what we mentioned concerning the permissibility of benefitting from its profit without issuing a ruling on it, this is because it is mentioned in the question that some scholars issued a Fatwa that it is permissible to invest in it while no mention was made in the question which proves that it is forbidden.
Allaah Knows best.
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