Category: the book of sales Transactions

Is this Riba?

Question :

A man sold sacks of rice to another man to be paid later at a designated time. So, the buyer took the rice from the seller and an auctioner auctioned the bags of rice at the market. Then, another man bought them from the auctioner and the auctioner said, "Take them." Then, he could not find the buyer present, so the first buyer said, "I am a representative. I will take them for him from the auctioner." Then, those present yelled out, saying, "Riba, Riba!" Please give us a ruling, and may Allâh reward you.

Answer:

If the person who bought the rice from the auctioner only bought the rice for himself, and there was no secret deal between him and the first seller or an agreement that he would buy it for him, and he does not work for him doing his work, and the first seller taking the sacks of rice from the auctioner was only by way of being appointed for the buyer, then the sale is correct. There is no Riba involved in it. If there was a secret deal made beforehand between the first seller and the person who bought the sacks of rice from the auctioner that he would be responsible for buying them so that the cases would be returned to the first seller, then this is a type of Riba, and the sale is incorrect. In this case, that which took place between them is deception and it is not hidden from Allâh, nor does it make something forbidden lawful.

Source:
The Permanent Committee
Fatawa Islamiyah, Vol. 4 Page 439