Question Summary:
From the question below, can u please tell me why the inaam cannot be considered as a volountary gift as is the case with credit card prizes?

Question Detail:

From the question below, can u please tell me why the inaam cannot be considered as a volountary gift as is the case with credit card prizes?
 
Question
 
In England, you can buy premium bonds. which throughout the year they don’t give any interest. But they put the number of the premium bond in a prize draw at the end of the month. If my premium number comes in the prize draw, i could win a prize.Is this halal?? (like in Pakistan its called inaami bond).

Answer
       
You have likened the In'aami bond of Pakistan to the Premium bond of England. As far as the In'aami bond, also known as Prize bond is concerned, it consists of two elements that render it  impermissible, namely gambling and interest. If they are interest free, they are still impermissible for the following two reasons:

1. It involves gambling, which Islam forbids. The bond monies are either invested or given on interest bearing loans. The profits accrued therefrom are collected in a draw. Whoever's bond number appears in the draw becomes entitled to the money. This is a gamble and is impermissible.

2. In'aami bonds could be classified as a partnership, as bond monies are jointly collected and invested, which makes all those that purchased bonds partners in the item invested. The principle in partnership is that all partners share in the profit of the investment in proportion to their contribution. In In'aami bonds, though they are partners, they do not share in the profit accrued from the investment, rather the monies are put in a draw and the one whose bond number appears in the draw becomes entitled to the money whilst the others are deprived of their monies. This is against the principle of a partnership and thus impermissible. (Refer to Aap Ke Masaail, vol 6, pg 272, Maktaba Bayyinaat)

 The late Grand Mufti of Pakistan, Mufti Rashid Ludhyani (Rahimahullah) had ruled In'aami bonds as Haraam and impermissible. (Ahsan Al- Fatawaa, vol 7, pg 26, HM Sa'eed)

We are unaware of the operational system of Premium bonds in England and thus unable to issue a ruling. We would appreciate if the contract of the premium bond scheme in England be forwarded to us for our review.

And Allah Ta'ala Knows Best
Ml. Talha Desai,
Student Darul Iftaa

Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah

Answer :

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh
 
The prize money received from In’aam bonds cannot be assumed as a voluntary gift for the following reasons:
 
When people purchase In’aam bonds, technically they are loaning money to the bank and are not simply purchasing bonds. These monies are collected by the bank and are given on loans that accrue interest. Part of the interest monies are allotted to the draw and given to those whose bond numbers appears in the draw. As Muslims, the monies received from the draw (the prize money) cannot be assumed as a gift and accepted, as it is pure interest money. The ruling of interest money is that it has to be returned to its rightful owner or else discarded off. It is not permissible to assume interest money as a gift and take possession of it.
 
Furthermore, any access monies received, apart from the bond monies invested, for example the prize money, will be regarded as Riba (interest). Bonds are a loan and any money received in access of a loan is Riba. The prize money is an amount received without an exchange or Shar’ee transaction and is illegitimate. Thus, it is money which is in access of a loan. Rasulullah (Sallallaahu alayhi wa sallam) mentioned:
 
كل قرض جر منفعة فهو وجه من وجوه الربا
“Any loan that results in some benefit for the lender, is one kinds of Riba” (Sunan Al-Bayhaqi). 


One may argue that the access money on the loan (i.e. the prize money) is a gift from the side of the bank and thus permissible to accept. A simple question to counter this argument is: If the bank does not institute a draw and offers no prize money to the bond holders, will the bond holders have a legal claim against the bank?
It is obvious that the bond holders will have a legal claim against the bank. This proves that the prize money is not merely a gift from the bank; rather it is a condition and agreement of the transaction.
 
The Shariah Appellate Bench of the Supreme Court of Pakistan, as well Hazrat Mufti Muhammad Taqi Sahab and other senior Mufti’s of Pakistan have ruled Prize Bonds impermissible.
( Contemporary Fatawa, pg 238, Idara Islamiat / Aap Ke Masaail, vol 6, pg 272, Maktaba Bayyinaat / Jawahir Al-Fatawa, vol 3, pg 187, Islami Kutub Khana)
 
And Allah knows best
Wassalam u Alaikum
Ml. Talha Desai,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah