Question Summary:
Is the following business income halal?

Question Detail:

 I have posted a question on 28/10/2014 which is not yet answered. It will be of great help for me if you answer our query so that we can take some important decisions.  Reposting the question for your kind consideration..
Assalamu alaikum wa rahmatullahi wa barakathuhu.May Allah bless and give barakath in the life of ourbeloved ulama who arethe guiding light of this ummah in this worst times.
My question is regarding the halal/ jaizah of earning in aparticular business. I am a young man from india and Ifollow shafi madhab.
 1)a business group ( doing retail of textiles, homeappliances, fancy items, retail and wholesale of jewellery)by muslims in our locality get cash as share/ deposit frompeople and is paying monthly profit. It is said inthe beginning itself that they will give you INR 2000 forevery INR 100,000 .We can withdraw whatever money wehave deposited at any time with a prior notice.
The totalcapital or the percentage of our share is not known.The business is expanding and when a new project is oncard they will themselves reduce the profit given, forexample, from INR 2000 to 1500 or 1000 per 100 000 citingthe reason that part of the profit is directed to the newproject and that we will be given share in the new outletautomatically. Thereafter that particular amount per lakhrupees per month is given regularly as profit, which wecan either receive in cash by hand or remain in an accounton our name with the company itself , that can beaccessed by us any time. We can withdraw whatevermoney we have deposited nothing more/less irrespectiveof the fact that their business expanded much overthese years. Nothing is mentioned regarding the case ofloss in business. They are also good muslims, do namaz,hajj, umra etc. In fact certain outlet even have designatedplace for namaz also. They also have consultedlocal ulema for doing this business and they endorsed itas jaizah. Certain ulema say its not jaizah. Please give mea detailed description of the shara-e status of abovebusiness with relevant ayayh/hadiths also.
 2)The same business group mentioned above also get goldas deposit and give a monthly profit. We can withdraw whatevergold we have deposited later at any time with a priornotice. For ex if I approch them with 100 sovereign(800gram) gold jewellery, they will take that jewellery atthat days market rate and will give us a bank check forthe equivalent amount. Also they give us a printed receiptstating the weigt of deposited gold and its cost on thatday. Therafter we will get monthly profit. The condition isthat the company will take a part say 50% from our profitsince we are not actively involved in business and only theremaining will be given to us as monthly profit.
 
We can withdraw whatever weight of gold jewellery we havedeposited at any time irrespective of the price of goldlater. That is 100 sovereign of gold jewellery can be takenfrom their shop. Here the monthly profit is not fixed, itvaries d epending on sales and market rate of gold.(variesin the range ofINR 1000 to 1500). Here also theproportion of our share, total capital etc are notrevealed.Nothing is mentioned regarding the case of lossin business.Here also many ulema are endorsing it asjaizah while another state it not jaizah because of thesereasons
1) its not gold that is in business. Gold has beenconverted to money. So I can't get back that sameamount gold again. I can take back only thecash equivalent to the gold I deposited. Rest is interest.2)the company should give profit proportionate to thegold I deposited. Also it is not permissible for thecompany to take a part from my profit even if I agree toit and that amounts to interest. 3) company shouldmention regarding sharing of loss also. Many muslimspious and daees are doing this and living prosperous life.Some ulama endorse it also. Asthaghifrullah. I am veryfrightened to say this. Not trying to find fault with any.Myself not good enough.But to convey you, the respecteddarul ifta ulama the reality and confusion I am suffering.Dear respected ulama, please give me a detaileddescription of both the above scenario with relevant ayath/hadiths. I am not to multiple ulama consultation,but since there are different opinions I would like to havea final opinion from an authentic source like yours.
 
I have to convince my parents also. My family(parents) isinvolved in this business in either form as cash and gold.One more thing if your fatwa is in the negative, that isthis business is haram then 1)can we take back ouroriginal deposited cash and gold? 2)what will be myfamily's status for we have been feeding this all theseyears? What will be the status of our amals and dua ifour food went haram? What we have to do in repentence?3) some amount of the accumulated profit is with ourhand as cash and remaining with the business firm itselfin our account. Can I use the already earned profit? i andmy wife are dependent on that profit (from gold deposit)since I am not working now as I prepare for an upcomingpost graduate entrance exam. (I can't borrow from myparents since they also source from same the business bydepositing both gold and cash, have to get debt fromsomeone outside then.) 4) if above, that is qustn 3 is notpossible what to do with the profit i already earned? 5) ifmy family, na oodubillah ,rejects to leave this businessdespite your fatwa that it is haram/not jaizah what shouldI do?
( I am involved in this business by gold deposit onlyand is ready to do according to your fatwa, but myparents are involved in this by both cash and golddeposit. I hope they will also follow) I and wife live withmy parents.Can I then eat from my home?Sorry for being quite lengthy.Include us also in yourduas,
May Allah bless you.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.  
 
The information you provided about the investment schemes is not sufficient for us to issue a ruling. If you can obtain a copy of the contract that governs the investment scheme, we will have better insight on the issue.
You state that there are differences of opinions among the ulamaa on the Shri’ah position of the investment schemes.
We advise you to refer to the Darul Iftaa of Madrasah Ta’leemuddeen Dabhel in the state of Gujrat. They will be in a better position to advise you as all the schemes you refer to are in India. Obtain the actual contract and send it to Darul Iftaa Dabhel for guidance. Follow whatever ruling the Darul Iftaa of Dabhel issues.
 
And Allah Ta’āla Knows Best
Muhammad Haris Siddiqui
Student Darul Iftaa
Melbourne, Australia
Checked and Approved by,
Mufti Ebrahim Desai.