Author: Dr. Muhammad Zia-ul-Rahman Azmi (رحمه الله)
This prohibition should be understood in the context of another narration, meaning it refers to transactions that involve explicit usury or are structured to facilitate usury through clever manipulation.
For example, a shopkeeper sells a car for 60,000 riyals on installments for one year, and then buys it back from the buyer for a lesser price, such as 40,000 riyals. This is an example of two sales in one transaction because the car, which is the item being sold, is sold twice: once at an unusually high price on credit and once at a lower price in cash. There is no doubt that this transaction opens the door to usury manipulation. The underlying implication would be that the buyer would pay 40,000 riyals for the car over one year, and the seller would still collect 60,000 riyals in installments.
Therefore, the Prophet (صلى الله عليه وسلم) warned against such transactions, saying: "When you will engage in Bai’ al-Aina, hold the tails of cows, meaning get involved in farming and be content with that, and abandon jihad, Allah will impose disgrace upon you, and it will not be removed until you return to your religion." [Sunan Abu Dawood, Hadith number 3462]
[Ibn Uthaymeen: Noor Ala al-Darb, 3/242]
Meaning of Prohibition of Two Sales in One Transaction
This refers to the prohibition that the Messenger of Allah (صلى الله عليه وسلم) forbade two sales in a single transaction. [Sunan al-Tirmidhi, Hadith number 1231]This prohibition should be understood in the context of another narration, meaning it refers to transactions that involve explicit usury or are structured to facilitate usury through clever manipulation.
Explanation of the Issue
The scenario in question is when someone sells an item on credit and then buys it back from the buyer at a lower price in cash.For example, a shopkeeper sells a car for 60,000 riyals on installments for one year, and then buys it back from the buyer for a lesser price, such as 40,000 riyals. This is an example of two sales in one transaction because the car, which is the item being sold, is sold twice: once at an unusually high price on credit and once at a lower price in cash. There is no doubt that this transaction opens the door to usury manipulation. The underlying implication would be that the buyer would pay 40,000 riyals for the car over one year, and the seller would still collect 60,000 riyals in installments.
Reason Behind the Prohibition
This kind of arrangement is viewed as a means of circumventing usury laws, where it appears as if the buyer is simply purchasing the car at a lower price, but in reality, the seller has manipulated the terms to receive a higher total amount. This practice is considered an unethical way to engage in usury.Ibn Abbas’ (رضي الله عنه) Explanation of the Issue
Hazrat Abdullah bin Abbas (رضي الله عنه) explained the issue of 'Bai' al-'Aina' by stating: "For dirhams, you are still exchanging dirhams; you have only inserted a piece of silk between them." This means that the transaction, in essence, is just an exchange of money for money, but with a deceitful intermediary step.Therefore, the Prophet (صلى الله عليه وسلم) warned against such transactions, saying: "When you will engage in Bai’ al-Aina, hold the tails of cows, meaning get involved in farming and be content with that, and abandon jihad, Allah will impose disgrace upon you, and it will not be removed until you return to your religion." [Sunan Abu Dawood, Hadith number 3462]
[Ibn Uthaymeen: Noor Ala al-Darb, 3/242]