Islamiat MCQ #17649

The Shariah principle of "Bay al-Inah" involves a sale and immediate buyback arrangement and is considered controversial because:

Islamiat MCQ #17649

  1. Question 1

    Q1. The Shariah principle of "Bay al-Inah" involves a sale and immediate buyback arrangement and is considered controversial because:

    • A) It involves two different buyers which complicates ownership transfer
    • B) It requires the involvement of a government regulator to be valid
    • C) It is viewed by many scholars as a legal ruse to obtain cash with interest effectively disguised as a double sale
    • D) It cannot be applied to real estate transactions under classical fiqh

    Answer: It is viewed by many scholars as a legal ruse to obtain cash with interest effectively disguised as a double sale

    Explanation: Bay al-Inah involves selling an asset to a buyer and then immediately buying it back at a different (usually higher deferred) price; many scholars view this as a legal ruse (hilah) that effectively creates interest-bearing debt in disguise.