The Ruling on the Form of a Buy-Back Sale ('Inah)
Machine translationRead the Arabic original
The questioner:
Honorable Shaykh, this questioner says: Does this scenario count as a buy-back sale (‘inah)? Zayd sold a car to ‘Amr for thirty thousand riyals, cash, and then Zayd bought the car back from ‘Amr for twenty thousand riyals, cash.
The Shaykh:
What?
The questioner:
He says: Zayd sold a car to 'Amr for thirty thousand riyals, payable immediately, and then Zayd bought the car back from 'Amr for twenty thousand riyals, payable immediately.
The Shaykh:
Yes, this is 'inah (a buy-back sale used to disguise a loan), because in reality he sold twenty thousand for thirty thousand, and made the car merely a ruse. Otherwise, in fact, he paid twenty thousand and is borrowing thirty thousand in its place, and he made the car a ruse in the form of a sale. This is haram (forbidden) and not permissible, and it is a deception regarding riba (usury or interest).
The presenter:
May Allah reward you
Honorable Shaykh, this questioner says: Does this scenario count as a buy-back sale (‘inah)? Zayd sold a car to ‘Amr for thirty thousand riyals, cash, and then Zayd bought the car back from ‘Amr for twenty thousand riyals, cash.
The Shaykh:
What?
The questioner:
He says: Zayd sold a car to 'Amr for thirty thousand riyals, payable immediately, and then Zayd bought the car back from 'Amr for twenty thousand riyals, payable immediately.
The Shaykh:
Yes, this is 'inah (a buy-back sale used to disguise a loan), because in reality he sold twenty thousand for thirty thousand, and made the car merely a ruse. Otherwise, in fact, he paid twenty thousand and is borrowing thirty thousand in its place, and he made the car a ruse in the form of a sale. This is haram (forbidden) and not permissible, and it is a deception regarding riba (usury or interest).
The presenter:
May Allah reward you
Source
75-اللقاء الأسبوعي مع الشيخ صالح الفوزان - 24 — archive.org (36:50)
The Arabic text is a machine transcription of the audio recording.