‘Eenah transactions

Question

Praise be to Allah.

‘Eenah transaction means to sell something for a price to be
paid at a later date, then to buy it back for a lower price to be paid
immediately.

What this ultimately means is that the buyer acquires cash
and will pay back a higher amount after a while, so it is as if it is a loan
in the form of a sale.

It says in al-Mawsoo’ah al-Fiqhiyyah (9/96):

There are several definitions of the ‘eenah that is
forbidden, the most well known of which is the sale of an item for a certain
price to be paid at a later date, then the same item is bought back for cash
for a lower price; at the end of the specified period the buyer pays the
first price. The difference between the two prices is riba for the first
seller and the whole transaction boils down to lending ten and getting back
fifteen, so the sale is a means to engage in riba. End quote.

Because of the prevalence of riba tricks in this kind of
transaction, the majority of scholars among the earlier and later
generations were of the view that this is haraam and they did not allow it.
Muhammad ibn Hasan al-Shaybaani said concerning one of the forms of ‘eenah –
as it says in Fath al-Qadeer (7/213): I feel very distressed about
this type of transaction; this transaction was invented by consumers of
riba.

The prohibition on ‘eenah transactions is indicated by the
report narrated from Ibn ‘Umar (may Allaah be pleased with him) who said: I
heard the Messenger of Allaah (peace and blessings of Allaah be upon
him) say: “When you enter into ‘eenah transactions [Eenah transaction means
to sell something for a price to be paid at a later date, then to buy it
back for a lower price (to be paid immediately); this is a trick used to
circumvent the prohibition on lending with interest], take hold of the tails
of cattle and are content with farming, and you forsake jihad, Allaah will
cause humiliation to prevail over you and will not withdraw it until you
return to your religion.”

Narrated by Abu Dawood (3462) and classed as saheeh by
al-Tabari in Musnad Ibn ‘Umar (1/108); Ibn Taymiyah in Majmoo’
al-Fataawa (29/30) and al-Albaani in al-Silsilah al-Saheehah (no.
11).

Imam ‘Abd al-Razzaaq al-San’aani included a chapter in his
al-Musannaf (8/184) entitled:

Chapter on a man who sells a product then wants to buy it
back for cash:

Ma’mar and al-Thawri told us, from Abu Ishaaq, from his wife,
that she entered upon ‘Aa’ishah among some other women and a woman asked
her: O Mother of the Believers, I had a slave girl. I sold her to Zayd ibn
Arqam for eight hundred to be paid at a later date, then I bought her from
him for six hundred, and I gave him six hundred in cash, but it was recorded
as eight hundred. ‘Aa’ishah said: What a bad transaction you have done, by
Allaah! What a bad transaction he has made, by Allaah! Tell Zayd ibn Arqam
that he has cancelled out his jihad with the Messenger of Allaah (peace
and blessings of Allaah be upon him) unless he repents. The woman said to
‘Aa’ishah: Do you mean that I should take my capital and return the extra
amount to him? She said: “So
whosoever receives an admonition from his Lord and stops eating
Ribaa, shall not be punished for the past; his case is for Allaah (to
judge); but whoever returns (to Ribaa), such are the dwellers of the Fire —
they will abide therein” [al-Baqarah 2:275]. Or she said: “but if you
repent, you shall have your capital sums. Deal not unjustly (by asking more
than your capital sums), and you shall not be dealt with unjustly (by
receiving less than your capital sums)” [al-Baqarah 2:279]. End quote.

Ibn ‘Abd al-Haadi said in Tanqeeh al-Ta’leeq (2/558):
its isnaad is jayyid. It was classed as saheeh by al-Zayla’i in Nasb
al-Raayah (4/16).

Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said in
al-Sharh al-Mumti’ (8/223):

An example of an ‘eenah transaction is if I sell Zayd a car
for twenty thousand to be paid in a year’s time, then I buy it back from
this man for eighteen thousand; this is haraam and is not permissible,
because it is using a trick to sell the car in an illusionary transaction
for twenty thousand, then I go back and buy it for eighteen thousand in
cash, so he will have taken it from me for eighteen thousand but he will pay
me for twenty thousand and this is riba, so it is not permissible, because
it is an obvious trick. Hence Ibn ‘Abbaas (may Allaah be pleased with him)
said: “Dirhams for dirhams with a sweet dish in between.” This is called the
issue of ‘eenah because the man gives cash for cash; al-‘een means cash,
gold or silver.

It should be noted that every time a person uses trickery to
do haraam things, it only leads to bad consequences, because what is haraam
is evil, and if a trick is used it is more evil, because you have combined
the haraam action with an attempt to deceive the Lord, may He be glorified
and exalted, but nothing is hidden from Allaah, may He be glorified and
exalted, and actions are but by intentions. End quote.

In the books of the fuqaha’ there are detailed discussions of
various forms of ‘eenah, and the guidelines on the prohibition of this
transaction may be found in the following sources: Badaa’i’ al-Sanaa’i’
(5/198), Mawaahib al-Jaleel (4/391), al-Umm (3/78) and
I’laam al-Muwaqqi’een (3/166).

For more information see the answer to question no.
98124.

And Allaah knows best.