Saturday, 6 February 2021

The third stage of the Qur'anic prohibition of riba & total eradication of riba from the economy




THIRD STAGE OF THE QUR’ANIC REVELATIONS FOR THE PROHIBITION OF RIBA: THE TOTAL ELIMINATION OF RIBA FROM THE ECONOMY

It was a matter of great moment that the Prophet (s) chose his sermon on the occasion of the farewell pilgrimage, just three months before his death, to launch the effort for the final and complete elimination of riba from Muslim society:

O People, listen to my words, for I do not know whether I shall meet you again on such an occasion in the future. . .

All interest (riba) obligation shall henceforth be waived. Your capital, however is yours to keep (in accepting the return of only the principal sum lent) you shall neither be inflicting injury nor yourselves suffering inequity. Allah has judged that there shall be no interest (riba) and that all the interest due to 'Abbas ibn 'Abd al-Muttalib shall hence-forth he waived . . .

What the Prophet (s) did was to enforce the legislation prohibiting riba (revealed in Surah ale-'Imran) retroactively. Thus the third stage of the process of dealing with riba was one which witnessed the total and complete eradication of riba from the society.

Some two months later came the last Qur’anic revelation on riba, which was also the last revelation in the Qur’an and which come down to complete the revelation of the entire Qur'an. It was revealed shortly before the death of the Prophet (s) and it confirmed the third stage which had already been promulgated by the Prophet (s) at A’rafat applied the prohibition against riba retro actively in order to achieve the complete eradication of riba from economy. It annulled all outstanding riba transactions, thus effecting a total and complete elimination of riba from the economy. It instructed Muslims to recover only the principal sum lent, and thus eliminated even small interest payments or service charges. It urged the creditor to forego even the principal in case of the borrower’s hardship thus bringing about debt relief. The revelation again severely censured riba, but this time it responded to those who argued that riba is but a form or trade. The Qur’an rejected that argument and went on to establish a clear distinction between trade and riba:

Those who spend their wealth by night and by day, secretly and openly - surely for such (people) there is reward with their Lord, nor shall they have cause for fear or grief.

Those who live off the interest (riba) on loans behave but as might behave those whom Satan has confounded with his touch; That is because they say: Trade is similar to taking interest (riba). Yet Allah has permitted trading and forbidden taking interest (riba). Anyone who receives such an instruction from his Lord and thereupon desists (from riba) may keep his past gains (i.e the riba he previously accepted), and his affair rests with Allah (i.e. it will be for Allah to judge him). But as for those who return to it - they are destined for the fire, therein to abide forever!

(And remember that) Allah deprives riba (usurious gains) of all blessings, whereas He blesses charitable deeds with manifold increase. And Allah does not love anyone who is stubbornly ingrate and persists in sinful ways. (So do not be stubborn and persist in riba even after this revelation has reached you).

Verily those who have attained to faith and do good works and are constant in prayer and dispense charity - they shall have their reward from their Lord and no fear need they have and neither shall they grieve. O you who have attained to faith! Remain conscious of Allah and give up all the riba which is outstanding (i.e. which people still owe you) if you are truly believers.

If you do not do so (i.e. if you do not give up outstanding riba) then take notice of war from Allah and His Messenger (i.e. take notice of an ultimatum of war for the liberation of debtors unjustly dealt with and oppressed). But if you turn away (i.e. if you give up riba) then you shall have (i.e. you will be entitled to) only your principal sums (which you had lent on the basis of riba) (i.e. you may have only the principal, - not the principal plus a reasonable amount of interest).

You deal not unjustly and you shall not be dealt with unjustly. (This might more properly be understood as follows: In accepting the return of only the principal sum lent you will not be inflicting injustice on the borrower. and in giving up the interest which was due will not, yourself, be subjected to any injustice.)

If the debtor is in difficulty, grant him time until it is easy for him to repay. But if you remit it (i.e. if you write off the debt) by way of charity, that will be best for you. if you only knew.

And fear the Day when you shall be brought back to Allah, then every soul will be paid what it earned and you shall not be dealt with unjustly.
(Qur’an: al-Baqarah:- 2:275-281)

An indication of the tremendous importance which Allah, the Most High, devoted to the elimination of riba can be discerned from the fact that this was, as we noted earlier, the last revelation of the Qur’an to be sent down (the last revelation was in fact, verses 179-181 and so 174-178 must have been revealed earlier). The dedication of war against usurers by Allah, the Most High, and His Messenger (s) is by far the most forceful language used in the Qur’an against sinners.

Now a declaration of war by Allah, the Most High and His Messenger (s) must definitely implicate the believers. The implication is that the oppressed were given a divine sanction to wage war, to kill and to be killed, in an effort to extricate themselves from the oppression that is inherent in riba. The believers were also required to wage war to eradicate riba from any society and from any territory whose oppressed people were crying out for help. My teacher of blessed memory Maulana Dr. Muhammad Fadlur Rahman Ansari (may Allah have mercy on him) further argued the case for the use of force in view of the fact that the Qur’an: . . enjoins active steps, through coercive authority for ending exploitation. He quoted, in this connection the following verse:

If two parties among the believers fall into a quarrel, make peace between them. But if one of them transgresses beyond bounds against the other then fight (all of you) against the one that transgresses until it complies with the command of Allah.
(Qur ’an: al-Hujurat: 49:9)

He went on to explain that the verse in its general bearing ... provides also the principle that if a group of Muslims tries to exploit another group, it is the duty of the Islamic State to restrain the exploiters by force. And he concluded by pointing out that: The prohibition of usury and interest (riba), whereby the rich exploit the poor, is part of the Qur’anic legislation (requiring the use of force for eradicating it). . .

Finally the last revelation to be sent down concerning riba continued the process of education which characterized all previous revelations on the subject. In the last revelation Allah, the Most High, again effected a contrast between ‘charity’ and ‘riba’ and between ‘spending’ and ‘riba’. Of course spending should not be understood in terms of conspicuous consumption, spending on luxury items, etc.

When people spend of their wealth, wealth circulate, in the economy. Everybody benefits from such. Or anyone can benefit from such. When spending bypasses the market, however which is what happens in riba transactions then only some will benefit. Thus when an economy is based on riba it should be as clear as daylight that the rich will always remain rich and the poor will be permanently poor. In fact it is worse than that. The rich will keep on growing richer and the poor will become poorer. That is a recipe for the breakdown of any social order. And that is precisely what the world has been witnessing for at least one hundred years now.

Thus the last stage of the Qur’anic revelation dealing with riba accomplished the following:
  • retro-active enforcement of the legislation prohibiting riba
  • sanction for waging war to eradicate riba
  • debt relief; 
  • process of education continued.

to be continued . . . . 

The Prohibition of Riba (Interest) by Imran Hosein



The Prohibition of Riba (Interest) (Q&A) by Imran Hosein



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