Renting out a store to a liquor company

Category: 

Business Dealings & Money Matters

According to Madhhab: 

Hanafi

Reference: 

1440-592

Question: 

My late
father was a shareholder in a company that deals with property investments.

This
property syndicate is 100% muslim owned.

One of the
properties in the portfolio is a Big Cash & Carry business that sells a
variety of products,
with Liqour
being one of them.

Previously
the Property Management Company got a ruling that as long as the liqour section 
is
separated from the other products & the tenant was only allowed to use a
limited space, 
the funds
received for that section were given out with no intention.

However,
after consultation, we were informed that because liqour is not the stores
primary business 
& the
space let out for liqour is less than a third of the total property size the
income is Halaal & rental income from the liqour section will be part of
the rental distribution in the future.

Property
Details

One tenant

Two
Buildings on One Plot next to each other.

Building
1: 

5500m2

BUILDING 2
:

3500M2

Total :
9000m2

Building
one is the Cash & Carry business (Groceries, Cleaning Materials,
Plasticware, Hardware etc...

Building
Two, the front of the building is the liqour section (1000m2), the remaining
space is used 
as a store
room for the cash & carry. 

As per
lease agreement with their head office they are not allowed to store Liqour in
the store room, but according to staff at the store room they do not
always
honour this agreement.

Can Hazrat
Mufti please clarify this as we are now confused.

Is the
rental income Halaal?


Answer; 

If majority of the income (51% or more) accrued by the business is from selling Halaal products then the lease agreement is in order and the rentals will be permissible to use. This is in the case where the entire property (that is building 1 and 2) have been let out to the same tenant in a single lease agreement.

AND ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST

ANSWERED BY: Mufti Mohammed Desai 

CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B 

Date: 18 Dhul Hiujjah 1440  English Date: 20 August 2019

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