The Majlis Archive
Finance - Banking - Business The Majlis Vol 26 No 02, p.2

Is the diminishing musharakah (leasing and purchasing) Shariah compliant?

Question

Is the diminishing musharakah (leasing and purchasing) Shariah compliant? According to Mufti Taqi it is a valid, permissible contract.

Answer

It is baatil - baseless and not permissible. We have explained the invalidity of this model in detail in an article. The very name 'diminishing mushaaraka' is stupid. There is no such concept in the Shariah.

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The Majlis Vol 26 No 02
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Appears under REPAYING LOANS. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.

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