Trade and Commerce

Colour Therapy and Chakras

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Q: Is there anything regarding chakras in Islam and where did it originate from? I would like to do something that is called colour therapy with also involves chakras so I want to know whether it is permissible in Islam or not.

A:
If you research Chakras, its origins are from Hinduism and Buddhism. It is not related to Islam at all. Thus this has to be avoided. It will not be permissible.

Allah Ta'aala knows best.

Moulana Yusuf Laher

FNB Musharakah Contract

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Q: Is the FNB Islamic home finance permissible based on the musharakah contract in South Africa?

A:
The Musharakah contract of FNB Islamic Finance is acceptable. You may enter into such a contract.

Allah Ta’ala knows best

Mufti Siraj Desai

Investment in Livestock

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Q: I have an investment that invests in livestock, I have requested a Rand value of the investment to determine my zakaat for 1436. I would like to know if the way I have gone about calculating my zakaat is correct? I was advised that the value of zakaat on livestock is greater than the respective rand value?

A:
If your investment entails a partnership or joint ownership in livestock then the zakaat has to be calculated according to the number of heads of livestock and not on rand value. There is a table that Shariah has drawn up for zakaat on livestock. You and your partners will have to calculate your zakaat according to this table. However, after you have determined the number of animals to be given in zakaat, you are allowed to give the rand value of those animals in zakaat instead of the actual animals.

If on the other hand, you are not a partner in ownership of the animals but invested your money only to share in profits, then there is no zakaat on the animals but on the cash money you accumulate after one Islamic year. For example, you gave someone R100,000 to do business with the condition that you will receive 50 percent of whatever profits he makes in any Halaal trade. This person then decides to trade in livestock with your cash capital. He buys and sells sheep or cattle, after which he passes on to you half of the profits accrued. In such a case, you are not liable for zakaat on the stock. Instead your zakaat will be payable on the cash money you received that remains in your possession after 12 Islamic months.

Allah Ta’ala knows best

If your investment is any different to what I have described above, please let me know, for the ruling might differ

Mufti Siraj Desai

Domestic Repair Schemes

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Q: Are domestic repair schemes permissible? For example, where one pays £10 a month and when the machine breaks down all costs are covered. Similarly, paying monthly installments for healthcare when the government health systems are failing.

A
: A domestic repair scheme is a form of insurance, and generally Islam does not permit insurance on account of the riba factor. However, if a service agreement is entered into in terms of which the company will service the machine and also do repairs over a fixed period of time, then this is permissible. But just to have a vague agreement that only covers incidental damage indefinitely, this is not permissible.

As regards healthcare, some Ulema have give permission for people who have chronic illnesses or mother who will need maternity care to take out health insurance schemes. One may act on this

Allah Ta’ala knows best

Mufti Siraj Desai
Darul-Uloom Abubakr

Car on Fixed Lease Agreement

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Q: Mercedes Benz has the agility finance option which means that you lease a car from them for a certain amount of time. Terms and conditions apply. Offer calculated on a C180. At a rate of 8.68% linked over 36 months, deposit of 10.5%, Total Retail Price of R483 929 at a Guaranteed Future Value (GFV) of 64% based on 20 000 km pa, Total Repayment Price of R509 695. Monthly Service Fee of R57.00 (not included in the Monthly Instalment). Upfront Initiation Fee of R1 140.00 (including VAT). Offer valid until 30 September 2015 subject to availability at participating dealers only. Please can you find out more about this agility finance for I want to purchase one of these cars? I would like to know if it permissible.

A:
The main thing in such a finance option is whether the monthly instalment is fixed for the entire duration of the repayments. If it IS fixed, then the lease agreement will be permissible and valid. Otherwise, not.

Allah Ta’ala knows best

Mufti Siraj Desai

Leasing to a Bank

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Q: 1. Is it permissible for an Islamic organisation to rent/lease their property out to a bank?
2. If not, and its already leased out, what is the way forward?

A
: It is not permissible for Muslims to lease premises to a bank. This falls under the Quranic prohibition of aiding and abetting sin. In this case, it is the sin of ribaa.

If premises were already leased to the bank then, firstly, an attempt should be made to cancel the lease. The organisation should consult with its attorneys to see if this is possible, though with banks it might be difficult to do this. So if this is not possible then the next thing to do is to inform the bank that its lease will not be renewed once it expires. Thereafter rental received from the bank should not be used for Musjid or madresa. Instead the organisation should spend it on welfare and social work, such as feeding schemes for the poor, grants to the poor and needy, food parcels, blankets, even bursaries for poor students, etc.

Allah Ta'ala knows best

Mufti Siraj Desai
Darul-Uloom Abubakr
Port Elizabeth
South Africa

Loan Involving Two Currencies

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Q: Mufti sahib I went in to a transaction with a brother as follows :

I wanted some cash money for my business so I told the brother if he would be interested in some US$ which I will sell him at a much lesser rate then the prevailing rate, e.g. prevailing rate K5.00 /$1 and offered rate K3.7 /$1 where he must give me the local currency (Kwacha) and I will only give the dollars to him after a year.

Finally we agreed on an amount US $100,000 for which he gave me KWACHA K370,000/ as per agreed rate. When time came for me to give him the US DOLLARS $100,000 I didn’t have the cash so I asked the brother if we could turn around once more on a new rate and we continued turning around the same initial amount for 3 years as I didn’t have the money, eventually the amount had increased 3 folds.

During this period I did give him some little  money  but in Kwacha, I still haven’t paid him and now I have been told my some ulema that such transactions are not permissible.

Mufti Sahib  when the deal was agreed in 2011. Some ulema had permitted such transactions but later they also disapproved of such transactions.

1)      Are such transactions allowed?
2)      Does the transaction remain valid since it was allowed during that period and the fatwa came later?
3)      Turn around of the same deal again and again due to not having the money allowed?


A: The initial deal was permissible. To exchange one currency for another on an agreed rate is lawful, as long as one of the two currencies was taken possession of. You did take possession of the Kwachas, so that made the deal lawful. A fixed rate of exchange was also agreed on.
However, after one year it was not permissible to turn around the debt on a new rate. In effect, it meant that you had increased the amount of money you owed him, and such increase was based solely on the fact that you were unable to effect payment at the stipulated time. This is the exact type of riba or usury that the Holy Quran has prohibited: interest charged for an extension of payment. Likewise the increase that you agreed upon in the following two years was also haraam for it constituted ribaa.

At this stage the deal is still valid but you only owe him the initial $100,000 and nothing more. You need to inform him that whatever agreement the two of you had made to increase the amount of dollars by lowering the agreed rate of Kwacha/Dollar, is now null and void. The first amount agreed upon when the deal was done, will remain in force. Whatever money you paid him in Kwachas must be calculated according to the initial rate of K3.7 /$ and deducted from the total debt.

Make taubah sincere for agreeing to a riba deal. Allah Ta'ala knows best


Mufti Siraj Desai
Darul-Uloom Abubakr
Port Elizabeth
South Africa

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