Question Summary:
Fines for late-coming students.

Question Detail:

Bismillahir Rahmanir Raheem
Assalamu Alaikum Mufti Saheb,
There is a ladies madarsah in our city collecting fine from late comers and absented students. Then they give this money to the poor people as sadaqah with the intention of passing rewards to the owner of this money. Is it permissible in Islam?
What is the alternate punishment for those students if the above is not permissible?
Jazakallahu Khiran Fid Daraini

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
 
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
 
Monetary fines are impermissible.[i] You may implement alternative forms of penalty such as detention or excluding the pupil from class activities or giving extra homework etc.
 
And Allah Ta’āla Knows Best
 
Saanwal ibn Muhammad,
Student Darul Iftaa
UK   
 
Checked and Approved by,
Mufti Ebrahim Desai Saheb