Question Summary:
Please advise if interest money could be used to build a house for a poor muslim or what else could interst money be used for.

Question Detail:

Please advise if interest money could be used to build a house for a poor muslim or what else could interst money be used for.

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
The actual ruling of interest and all haram money is that it should be returned to the owner.  If that is not possible, then it will be necessary to give it in charity without the intention of reward, or it may be used for public utilities for example digging public wells, averting oppression etc.
(Rad Al-Muhtar 385/6 H M Saeed)
وعلى هذا قالوا لو مات الرجل وكسبه من بيع الباذق أو الظلم أو أخذ الرشوة يتورع الورثة ، ولا يأخذون منه شيئا وهو أولى بهم ويردونها على أربابها إن عرفوهم ، وإلا تصدقوا بها لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه
(Fatawa Mahmudiya 435/18 Jamia Faruqiya)
(Jadid Fiqhi Masa'il 420/1 Naemiyah)
And Allah knows best
Wassalam
Ml. Ahmed Mohomed Pandor,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah