Mansoor Danish – MoneyMatters – All About Riba QA 5

			from the Latin America, there's a question where the question wants to know that if a company offers
loans to employees, and they deduct a loan amount and an additional 500 rupees is deducted, and that
amount is like a reserve which is created in case a person misses out paying the loan, then money is
taken from de is this rubber look this has to be looked into technically,
		

			if I have to pay you back 1000 rupees every month, okay for 12 months, and as a matter of safety and
precaution, the company says we are going to set aside a reserve So, instead of deducting 100 rupees
every month from your salary, we will deduct 150 rupees. So, I deduct 150 rupees and this 50 rupees
keeps getting set aside as a reserve. And at the end of the 12 months, if I had paid the 12 months
amount, then the additional 50 rupees which was deducted every month, which totals up to 600 is
returned back to me, then this is not an issue
		

			if they say that you fail to pay for say two months, so that's like 200 rupees So, we take out 200
from that kitty and return you back the 400 that's also not an issue because it's not rubber
whatever I owed are paid back. However, if the company tells me that this reserve amount now stays
back with us, then that becomes a case of rubber. So, if I understood the question correctly, and
this is the most appropriate answer to it,
		

			which is to know about the ruling on drop shipping is drop shipping halaal in Islam, for the for the
ease of the others who may not know what drop shipping is drop shipping is a system which has gained
a lot of popularity nowadays, what happens is a retailer markets products being offered by a
wholesaler or a manufacturer, thereby creating a demand amongst the customers after he receives the
demand, he collects the payment then he goes and purchases the item from the wholesaler or
manufacturer and then arranges to deliver the product.
		

			So, all what he does is he passes the lead to the wholesaler makes the payment to the wholesaler and
asks the wholesaler to deliver the goods or the commodities to the concerned person in this
		

			transaction, the one who is doing this drop shipping benefits from marketing and earns the
difference in price. So he may charge for example $100 from you, but the price of the goods that he
will procure from the wholesaler will be at $95 and that $5 becomes his profit. What is the ruling
on this? Is this allowed? Are these transactions allowed? As we remember we said the general ruling
is you're not allowed to sell something that you don't own. These are the basic law the Prophet
sallallahu wasallam said the hardest isn't soon and remedied do not sell what you do not own. So
		

			is there any exception to this? Well, there is an exception in the form of a transaction called the
Salam transaction or a forward sale. This is a sale whereby a seller undertakes to supply certain
specific goods to the buyer at a future date in exchange of an advice advanced price fully paid on
the spot. So basically, the
		

			option over here is something which is technical if drop shopping has to be islamically allowed, it
will have to follow the salon mechanism of transaction where the buyer will pay an agreed amount to
the seller for an item to be delivered on a set date and play place and then the sellers job will be
to go and procure it from the wholesaler or the manufacturer and make sure that the product reaches
the buyer. As per the specification mentioned, what is important here is it has to follow the salon
model of transaction.
		

			Okay, so
		

			there are a lot of conditions attached to it. Now, the other alternative is if you are living in a
country where all of these things may appear a little complicated. The simple thing is, if you are
in the business of drop shipping, what you could probably do is get a certificate or a license from
a manufacturer or a wholesaler to be an authorized distributor or an authorized commissioned agent
who's acting on behalf of a wholesaler or a manufacturer. If you do that, then there isn't any
problem because even if you don't own it, you have been authorized by the wholesaler or manufacturer
to get them the lead.
		

			And in the games that they pay you, your commission. However, the kind of drop shipping that exists
in the market today, in most of the cases, there is no contract between the whole seller and the
seller, the retailer, the retailer just markets it on his website. If you wish to buy any of the
product, you place an order. As soon as you place an order, his job now is to contact the wholesaler
and ask him to send across the goods to you. So this becomes problematic if there is no specific
agreement where he is not entitled to act on behalf of the wholesaler, then he's behaving as though
he owns the good, which is not correct, which is a misleading claim that he is making and Allah
		

			knows best. Another question without me realizing my employer puts a percentage of my salary in a
portfolio, some of which are bonds, what am I going to do in this situation? Look, if your employer
puts your salary in any instrument,
		

			out of compulsion forced, it is not voluntarily it's not something that you have chosen for
yourself. And this is the policy, the company, the company doesn't give you an option. In a
situation like this, whatever money you make from there, that entire money is yours, you can freely
use it. However, if you have an option to decide what to do with that money, then you should
instruct your employer not to invest in those schemes. And Allah knows best
		

			student to you wants to know about fear money, whose intrinsic value is nothing according to Sharia.
So Well, actually, according to anyone, it's got no value. So what we're doing in economics, Is it
wrong? What is the view according to Sharia? Look, what she means by fiat money is the paper
currency that you have with you right now, if you take it out from your pocket, if you tear it, it's
colossal, it's over, you don't get anything back. Right? If you have gold with you. And if you go to
the jeweler, and you tell him that Listen, I've got 10 grams of gold, give me two five grams of gold
or break it into two pieces and give me two five, make it five, five grams, they both still have
		

			values, right? So the there is an intrinsic value, the value of gold is in gold. That's what she
means to say. But the value of a fiat currency is not in the fiat currency. If I write a note, and I
say this is 50,000 rupees, does that mean that that paper has a value of 50,000? No, it does not
mean the paper has a value of 50,000 the paper being printed in bulk may probably cost you five
pesos to pass or 1%. That's it. But because of the legal tender money, that's why it's called legal
tender money because it has been legalized and the government has printed it and given it an
official sanction, it becomes of its value whatever value it is representing. So the question wants
		

			to know how fair is it to use these paper currencies which have got no value as money? I mean, is it
Sharia compliant? The answer is historically, and if you see
		

			the six or above the commodities that the prophets of Salaam also mentioned, they had value in them
like salt has value salt in itself has value gold in itself has value silver in itself has value.
Right? So these were the rubber we commodities. And if you see traditionally, at different points of
time in human history, all of these rubber, we commodities, and even more other commodities as well
have been used as legal tender money. So in the past, people would use that which had actual value
as real money.
		

			Okay, then what happened was the Bretton Woods agreement took place Well, before the Bretton Woods
agreement, what happened is the goldsmith what they started doing, look at the history of money. The
Goldsmith, what they started doing was people came to them and they said, Listen, I have these gold
reserves with me, I'm going to give it to you. You know, they would leave it as storage and when
they would leave it as storage with the jeweller. The jeweller would issue a certificate saying
Ayesha has 10 grams of gold with us. Okay? And on the due date, whenever I would come to the jeweler
and say, Listen, this is my certificate, give me back my gold, so the goal would be returned.
		

			Now what happened was more and more people started keeping the money with the jeweler for whatever
reasons, and they started utilizing these certificates in the market. So if I show how to pay
something to madiha, let's suppose you had to pay 10 grams of gold to Maria, she wouldn't go to the
jeweler and say, Please give me my 10 grams of jeweler of gold. I need to pay to my friend. Rather
she would just hand over that certificate to Monday her. So the Goldsmith's realized that the people
are not coming back to take back their gold, and rather the ones who come back up different from the
		

			Once whom they are being issued to. So they realize that the gold is now the certificates are now
being traded in the market, it is being exchanged. And it's becoming convenient for the people
instead of carrying gold with me everywhere. I can simply carry certificates. It's ease of doing
business.
		

			So what do you illustrate the goldsmith it was, you know, the Jewish Goldsmith, they were the ones
who were controlling the market, they decided that listen, we have a chance here to make more money
for ourselves, what they started doing was, they now started issuing fake certificates, which were
not backed by gold into the market, because we knew that not everyone is going to come back and take
the actual gold, the certificate itself was now becoming worth the gold.
		

			So by issuing fake certificates, they started creating fake money in the market. Right? There's no
actual money in the market, but they have just issued certain certificates and created money in the
market. So this is how they were creating more and more fake currencies in the market. So when you
look into this history, and then when you compare it with the, the monetary system that we have
today, it's the same thing. The Bretton Woods agreement was what when the Bretton Woods agreement
happened, then, in us, for example, everyone was asked to hand over the gold deposits to the
government, and against that dollars were issued to them. And it was mentioned in dollar in the
		

			dollar In God we trust. Why was that statement written? It was written because what you were telling
the people is, listen, we trust in God, you can trust in us, we won't cheat you, each of the dollars
that we're issuing you is backed by gold. That is what they were mentioning. So they kept on doing
the transaction in this manner. And eventually what happened was,
		

			the US withdrew from the Bretton Woods agreement unilaterally, it came out of the Bretton Woods
agreement, and they took away all the gold reserves from the people. And now he started issuing fake
currencies in the market.
		

			Okay, so this is what has happened. It's a big, big theft, it's a grand theft, which has taken place
with the wealth of the people, but you've taken away the actual wealth of the people, and you have
replaced it with
		

			fake currencies.
		

			Now, what happens in the market? Now, what happens is that whenever they are short of money, they
can simply print money without any backing. So when the Middle Eastern countries are trading the oil
with dollars, what is happening? The oil is real wealth, its natural resources.
		

			But you're selling your natural resource against printed currencies, the value of which can go away
overnight.
		

			Not with real money. This is why some of the countries had raised concerns. Okay. And they wanted to
trade with gold. They oil with gold. And well, eventually we know what happened to those countries
and the leaders.
		

			We won't get into the politics here. So is it halaal? Is it Sharia compliant? No, it isn't. But
because we don't have an alternative now and the entire economy is controlled by this legal tender
money, the Sharia scholars have given an approval to it. But there should always be a continuous
focus of all our economists to revise the original form of currencies, the real wealth, which will
make actual people wealthy today, these paper currencies can make anyone wealthy because then anyone
can go and take loan from the company, and they can have so much of money showing against the name
when where actually they don't have that real wealth with them. What are the Sharia board lines
		

			about the investment being halaal the burden of responsibility is on whom the olema are the
investors. First and foremost, lying is a serious allegation. So firstly, we make it clear that
sometimes the orlimar may make an inch too hard and interpretation may strive to come to a ruling
and that ruling may be correct may be wrong. If it is correct, he gets to reward the reward for the
hard and the reward for getting the ruling right. If he gets it wrong, he still gets the reward for
the HDR so he still gets one reward. We make it clear this is not lying. However, the questioner
says what if it is a lie which means that the alima knows this is her arm, but because of the
		

			pressure etc, he makes it halaal and we know of schemes like this.
		

			In a situation like this, naturally the burden of responsibility is lying with the earlier ma for
misleading the investors and the entire sin of the investors would perhaps be something with the
amount we need to account for Allah knows best. However, an important point here is if there is
another group, which is pointing out to you that this is wrong. You must try to live
		

			into the reasoning, you must listen to the argument. Why is it that the other group calls it haram?
Do you think this is making sense? If somebody says that this is blatant lie that they are doing
their question you should go up and ask your Sharia scholars, you can ask them why is it that there
are difference in opinion happening? Why is it that the other group says that you are
		

			approving a haram scheme
		

			and that is the duty and responsibility of every investor. Okay. So that is my personal opinion and
Allah knows best