A Very Complicated Issue of Investment With Non-Muslim
Fatwa No: 387388

  • Fatwa Date:27-11-2018 - Rabee' Al-Awwal 19, 1440
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Question

As salamu Alaikummay Allaah bless all of you.I am from India, one of my Muslim very religious friend used to collect the amount from many people and used to invest with one of his non Muslim friend in a business. This non Muslim businessman was showing him lot of profit in his business and was able to prove through documents his profits. Because my friend was very religious people trusted him and invested with him lot of amounts. He used to take some percentage of the profit against his efforts and used to give the investors some percentage of profit on their investment which was not fixed.After sometime my friend found out that the non-Muslim businessman was not making much profits rather he was collecting the money and giving them from their own money as profits.Now he claims that there is no profit and also he is not able to give them their capitals.now my friend is in dilemma what to do:1. what is the ruling of the money the investors got it as profits till this time. Whether they can use it or they must give it back?2. What is the rulings of the money my friend took it as against his efforts. Is it allowed to him keep with him or not.3. Some investors invested there years back and got some money as profits but those who invested one year back didn’t get any returns, hence they are demanding some extra share in the company and its assets. Please advise. Jazakumullahu khairan.

Answer

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

The answer to this question requires a long explanation because of the probabilities that must be presumed (for its likelihood to happen) and every probability divides into many subsections about which many statements of some scholars were said; the matter which may need a prolonged answer and which may not benefit you.

However, if you present the issue directly (orally) to the scholars in your country, then it will be more appropriate as they will ask you questions about matters that need clarification without the need to presume probabilities (hypothesis) that may not actually exist.

Did the owners of the capital money authorize this Muslim mediator to give their money to others? Did they give him permission to take a percentage of the profit or not? Was the businessman actually investing the money and providing documents as evidence about this and then he claimed that he did not invest the money and did not get any profit or what?

Therefore, it is necessary to ask the scholars orally about this matter.

Allah knows best.

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