Ruling on Entering into an Interest-Based Partnership with a Hindu – Shar‘i Guidance
Source: Fatāwā Rashidiyyah, p. 477
❖ Question:
A person, who calls himself Ahl al-Ḥadīth, has entrusted his wealth to a Hindu for profit. The Hindu conducts business, and since Hindus are often involved in usurious dealings, when he is told about it, he replies:
"I have not instructed him to take interest, nor do I consume it myself. Although the money is jointly owned, I only take my profit, while my partner also lends the amount on interest."
❖ Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu wa-s-salāmu ‘alā Rasūlillāh, ammā ba‘d!
◈ It is absolutely impermissible to form a partnership with anyone—Muslim or Hindu—who deals with ribā (interest).
◈ Since Hindus are certainly engaged in usurious transactions, any partnership agreement with them is Shar‘an invalid.
◈ The one who takes interest, the one who gives it, the one who writes the contract, and the witnesses are all equally guilty.
◈ The Messenger of Allah ﷺ cursed all of them.
✿ The Absolute Prohibition of Ribā
- Ribā is forbidden in every form.
- Even the scribe who merely writes down the interest-based contract, without being a party or beneficiary, is declared accursed.
- If such individuals are cursed, then how can one who shares directly in the profit of ribā be absolved?
If such excuses are accepted—
"Since the Hindu partner deals with interest and I only take my profit"—
then the door will open for everyone to exploit this. People would hire Hindus as front-men to deal in interest, while they sit at home reaping the usurious profits, claiming: “We never instructed them to take interest.”
This would render the Qur’ānic ruling on ribā meaningless.
✿ Example from the Qur’an
The Banī Isrā’īl were forbidden to fish on Saturday.
- They did not physically fish on Saturday but blocked the fish from escaping, then caught them on Sunday.
- In reality, they committed the same prohibited act under a different guise.
- For this, the Qur’an condemned them.
Thus, what Allah has forbidden, whether done directly or through a scheme, remains equally forbidden.
✿ Principle in Islamic Law
If someone is prohibited from an act, whether he does it himself or causes it to be done through another, both are equally guilty.
- Example: unjust killing is harām. If a man does not kill with his own hands but pays someone to do it, he is still legally considered the murderer.
- The same principle applies to ribā: whether taken directly or indirectly, it remains prohibited and sinful.
✿ Hadith Evidence
The Prophet ﷺ said:
“Ribā has seventy degrees of sin. The least of them is like a man committing fornication with his mother.”
(Ibn Mājah)
✿ Partnership with Hindus in Fiqh
Classical fiqh texts also rule that it is impermissible to form a partnership with Hindus.
- The reason: they deem certain acts lawful which are harām for Muslims, such as usurious dealings.
Conclusion:
- Entering into partnership with a Hindu—or anyone involved in interest—is harām.
- Ribā is accursed in all forms, whether direct or indirect.
- Such partnerships are invalid and sinful in Sharī‘ah.
