Goodwill pagdi system

Q: I have a question related to an old rented property system called pagdi system. My friend had a shop in 2002 and he wanted to give it for rent. But unfortunately the old pagdi rented system was imposed at that time and most of the properties were rented on this system. So he also accepted the pagdi rented system and gave it for pagdi rent based...

The rules in this system are mentioned below:

1) The total price of the shop is 200 000

2) The owner gets half of the amount 100 000 at the start of the pagdi rented system from the tenant

3) The rent was fixed at Rs 700 per month and after every 11 months 10% has to be increased. For e.g. If the rent was Rs 700 in 1st Jan 2002, then on 12th Dec 2002 the amount of rent has to be increased by 10% (700×10÷100=70)

4) So After 11 months, the amount is Rs 770 which again has to be increased by 10% after 11 months

5) The whole system is based on that and continues.

6) The amount of the shop now in 2017 is approx. 20 000 000

My question is that the Ulama gave the fatwa that pagdi system is haraam in Islam. All the pagdi system has to be ended and only the pure rented income is halaal. So after this, my question is that my Friend is the owner of the shop but the tenant left the shop in 2012 due to some personal reasons and also informed my friend who is the owner of the shop that he left the shop and he will come back soon but he did not come back after one year. He took out all of his furniture, assets and everything from the shop and also can't give any rent From 2012 to 2017  My Freinds Shop Was Closed And he did not get any Benefit from it He File the Case with the Court About all this situation And After Few Years The Court Ordered him the Case In his favour As An Ex Partee (Because the tenant Not Presented in Any Session of the Court) And My Freind Declared  as a Legal owner of the Shop  By The Court Of Law... It Is Halal To get The Shop In this way? Because We live in An Islamic Ideology State Pakistan And All The Rules & Regulation Of the Court Law is based on the Principles of Islam...

Q Is My Friend Feel Free In All this Way that it is Halal?

Q Is he be able to do his business in this shop According to Islam?

A: The goodwill pagdi system is incorrect. The alternative halaal system is that you inflate the rental. For example, you may take 5000 per month.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)