This post is a continuation of our earlier article on Islamic finance.
Now let me explain some of the endeavours Mr. Taqi Usmani has made to add to the knowledge of the present day Muslim. He has very kindly written a Book on Islamic Finance, named “ISLAMIC FINANCE”. in English. In the first few chapters he dared to write that Islam is very firm and strict against riba chargeable by the lender from the borrower based on return of goods or money or pay back in
terms of any valuable goods or service in future by increased payment due to passage of time which may be one day after or a month or a year in future, that increase based on time is undoubtedly haram and is termed as Riba in Islam and punishable in an Islamic Society. While any participation like Musharika and Mudaraba on profit basis and you cannot find any room for any form of Riba-Sood- or Interest in it. However according to such & such Fiqah one can easily find his way through for the interest which is converted into profit- halal- tayyab and easily digestible and that product is Morabaha which muslims of the early ages could not taste because of lack of knowledge of the Technologies of 21st Century. After all they were uneducated and no one was Aalim like Ulemas of the present time. They were in fact ignorant looser to avoid the profit halalan tayyaban and could not enjoy the fruits allowed and permitted by God. According to him dealing in money and earning profit is haram (which he says, prohibited) this term prohibited does not infer any punishment like hell.
Because currency has no intrinsic utility so doing any transaction of present money with future money is prohibited and haram. Likewise any transaction in money involving interest is the only thing which is haram and disallowed. If the money is converted into goods by the dealer of money, then the goods are sold to the borrower on credit with profit added over it and collect the entire money in easy installments on time basis,such arbitrary profit cannot be said Riba. Look at the cheating method. It is strongly against the teaching of Quraan rather it is just like trying to cheat Allah the Almighty. The banker is not the trader, so it cannot be purchaser or seller nor it is investor in true sense of the word. It is only a dealer of money against money because the payback is in the form of money, no matter if the money takes the form of purchase or sale in the mean time. The whole dealing starts with money and ends in money and the intention of the banker seems to jeopardize the Islamic principles by creating confusion and a Jew like activity. It may be added that according to Islam dealing in money only is completely banned. You can hide the interest by some sort of cover but in any case the intention of the dealer of money will surely be exposed and come to light. In Quraan the question of the non-believers that Riba is just like trading, was strongly condemned by Allah by his aayat that trading is halal and Riba is made haram. So the mullas of the present time dared to convert the money into goods by fictitious trading activity finally converted into money. Students of commerce may learn a new terminology of intrinsic for utility and refresh their minds, forget what they have learnt that the word intrinsic is used for money or share certificates or anything which carries value and is always followed by value, it is better that they forget what they have learnt about intrinsic value. Now intrinsic utility is the order of the day because the most learned person the Aalim has used that word who is always supposed to be unquestioned by the followers. Coming to the point, dealing in money on its face value with money of future to make profit is haram and the least resemblence of Riba like transaction known as Reeba is also to be avoided, but if the methodology of cooking haram in such a way that it is made halal is applied, it becomes 100 % halal and tayyab and that is very simple. You have to make certain ficticious and dummy documents. Consider a person who has to borrow money from the bank (the lender) on pure Riba basis, he will be committing a sin which will lead him to hell –jahannam. So to avoid hell he has to adopt the technique explained by Mr. Taqi, the following documents will be needed.
- B the borrower L the lender. B will become Agent for L and will make a purchase agreement on behalf of L with the supplier S. The Supplier delivers the goods to borrower and makes the sales invoice in the name of the Lender. Afterwards the Lender will assume the position of seller and will sell the goods to his agent who is now the purchaser obviously on credit with the agreed profit margin which cannot be called Riba now, according to such and such Fiqah. Now the total amount (Cost + Profit), (the profit being arbitrary interest commonly known as bench mark which is set by State Bank and every banker has to follow it) is payable by the borrower in easy installments.
- Let us add some more sweet in the Halwa so prepared, by returning the goods to the original Supplier with a token deduction of say 1%. Or let there be no movement of goods altogether and 4- 5 documents are prepared for cooking the haram so as to turn into halal.
- By the above method the money goes from the lender to the borrower on interest which is now profit and halalan tayyaban.
- Just imagine the height of technology and you have won the game by means of fiqah which can do miracles.
- Can Quraan help us so much? No way. Hh Haza min fazle Rabbi. Naoozubillah min zalik. Naoozubillahe min shuroore unfusena wa min sayyeaate aamalina. Lahola wa la quwwata illa billah…………..!!!