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 is His slave and Messenger.
First of all, it is appropriate to give a definition of the Dewali festival, which is a Hindu festival known as “the Festival of Lights”. According to the Hindus, it signifies the victory of good over evil.
As regards the sweets that are made on this day, it is permissible to eat it if its ingredients do not include what is religiously prohibited. That is because these sweets are not forbidden in itself; rather, in principle, they are permissible if this does not lead to a forbidden act, like participating in their celebrations and festivals as we previously clarified in Fataawa 83628 and 82006.
Ibn Taymiyyah said: “As regards accepting a gift from them (the non-Muslims) on the day of their festival, we have quoted above that ‘Ali Ibn Abi Taalib was given a gift (by them) and he accepted it, until he said: “…All this is evidence that the festival does not make it forbidden to accept their gifts; rather, the ruling is the same whether it is their festival or not, because that does not involve helping them in their rites of disbelief.”
Allaah Knows best.