Charitable organization stipulating the tenant pays 10% for delaying the payment of rent


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A: A cooperative society binding the lessee to pay an additional 10% in compensation for delaying the rent from its fixed date is not permissible. This is similar to Riba (usury) that prevailed during the pre-Islamic days of ignorance when a creditor would give the debtor the option between repayment and increasing the due amount. (Part No. 13; Page No. 338)  May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.




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