What is the ruling on tawarruq in Islam?
Machine translationRead the Arabic original
The Shaykh : Do you know anything about it?
The questioner : What is the ruling on tawarruq?
The Shaykh : It is not permissible; this is a buy-back sale used to disguise a loan.
Al-Halabi : Our Shaykh, regarding the same issue, please continue with this.
The Shaykh : No problem if he is not convinced.
Another questioner : What is tawarruq, our Shaykh?
The Shaykh : It is when a person needs money. Look at the hadith we always bring up:Sunan Abi Dawud 3462Sahih (Al-Albani) and so on. A person needs money, how much? For example, a thousand dinars. He takes a thousand dinars plus one hundred; this is open usury or interest. What does the merchant say to him? He says, "Buy these bags of sugar or rice from me for a thousand dinars." Then I will buy them from you for nine hundred dinars. So he lends him nine hundred and records a thousand against him. This is also among the stratagems of buying and selling, but its goal is not buying and its goal is not selling; its goal is obtaining the money.
The questioner : Is this called tawarruq?
The Shaykh : They call it tawarruq, yes.
The questioner : He buys it, for example, and sells it in another place.
The Shaykh : Yes, but in another place he buys it with the same intention, so that merchant who sells to him knows that he wants this.
The questioner : And if he does not know?
The Shaykh : If he does not know, like all the rulings of the Shari'ah:[Al-Baqarah 2:286] the sin is confined to the one who engages in this purchase.
The student : Does the issue change, our Shaykh, if even the giver changes and the buyer changes, meaning he bought it from one merchant and sold it to another merchant? Does the ruling of the issue change?
Al-Albani: The ruling for the buyer does not change, but as for the seller, if he knows that he is buying in order to sell for less and obtain money, he commits a sin.
The questioner : What is the ruling on tawarruq?
The Shaykh : It is not permissible; this is a buy-back sale used to disguise a loan.
Al-Halabi : Our Shaykh, regarding the same issue, please continue with this.
The Shaykh : No problem if he is not convinced.
Another questioner : What is tawarruq, our Shaykh?
The Shaykh : It is when a person needs money. Look at the hadith we always bring up:
When you enter into the inah transaction, hold the tails of oxen
إذا تبايعتم بالعينة وأخذتم أذناب البقر ...The questioner : Is this called tawarruq?
The Shaykh : They call it tawarruq, yes.
The questioner : He buys it, for example, and sells it in another place.
The Shaykh : Yes, but in another place he buys it with the same intention, so that merchant who sells to him knows that he wants this.
The questioner : And if he does not know?
The Shaykh : If he does not know, like all the rulings of the Shari'ah:
Allah does not charge a soul except [with that within] its capacity
لا يكلف الله نفسا إلا وسعهاThe student : Does the issue change, our Shaykh, if even the giver changes and the buyer changes, meaning he bought it from one merchant and sold it to another merchant? Does the ruling of the issue change?
Al-Albani: The ruling for the buyer does not change, but as for the seller, if he knows that he is buying in order to sell for less and obtain money, he commits a sin.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.