The Ruling on 'Inah and Tawarruq
Machine translationRead the Arabic original
Question:
What is the form of 'inah? What is the form of tawarruq? And what is their ruling?
Answer:
'Inah is when you buy a commodity for a deferred price, then you sell it back to its owner for a cash price that is less than the deferred price. This is 'inah, and it is forbidden (haram) because it is riba (usury or interest), and the sale is merely a ruse. It is not a valid sale because the commodity returned to him; he took it for a lower price, and you will take the deferred price from him later. This is riba: selling money for more money with a delay, and the commodity is merely a ruse under the name of sale. This is forbidden.
As for tawarruq, you buy a commodity for a deferred price, then you sell it to someone other than the creditor in order to benefit from its price. The majority of scholars have permitted this because it is a sale, and the commodity did not return to its owner; rather, it was sold to someone else, and you benefited from its price in the present, while you settle its value later. There is nothing wrong with this due to people's need for it. This is buying and selling, and there is nothing wrong with it, if Allah wills. The need is a driver for this; if this door were not opened for people, they would resort to riba, such as loans from banks with riba. Yes.
What is the form of 'inah? What is the form of tawarruq? And what is their ruling?
Answer:
'Inah is when you buy a commodity for a deferred price, then you sell it back to its owner for a cash price that is less than the deferred price. This is 'inah, and it is forbidden (haram) because it is riba (usury or interest), and the sale is merely a ruse. It is not a valid sale because the commodity returned to him; he took it for a lower price, and you will take the deferred price from him later. This is riba: selling money for more money with a delay, and the commodity is merely a ruse under the name of sale. This is forbidden.
As for tawarruq, you buy a commodity for a deferred price, then you sell it to someone other than the creditor in order to benefit from its price. The majority of scholars have permitted this because it is a sale, and the commodity did not return to its owner; rather, it was sold to someone else, and you benefited from its price in the present, while you settle its value later. There is nothing wrong with this due to people's need for it. This is buying and selling, and there is nothing wrong with it, if Allah wills. The need is a driver for this; if this door were not opened for people, they would resort to riba, such as loans from banks with riba. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، ما هي صورة العِينَة؟ وما هي صورة التورّق؟ وما حكمهما؟ للشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.