Money that is received from interest is Haraam in Islaam. That money must be given back to the owner. Allah says in the Quraan in Ayah 275 of Surah Baqarah:

وَأَحَلَّ اللََُّّ الْبَيْعَ وَحَرَّمَ ال رِ ب

Allah Ta'aala has permitted trade and has forbidden interest.

عَنْ أَبِِ مَُُمَّدٍ الَْْسَنِ بْنِ عَلِ ي بْنِ أَبِِ طَالِبٍ سِبْطِ رَسُولِ اللََِّّ صلى الله عليه و سلم وَرَيَْْانَتِهِ رَضِ يَ اللََُّّ عَنْهُمَا، قَالَ: حَفِظْت مِنْ رَسُولِ اللََِّّ صلى الله عليه و سلم "دَعْ مَا يُرِيبُك إلََ مَا لََ يُرِيبُ ك ". رَوَاهُ ال تِْمِذِيُّ ]رقم: 2520 ]

On the authority of Abu Muhammad al-Hasan ibn Ali ibn Abi Talib (may Allah be pleased with him), the grandson of the Messenger of Allah (peace and blessings of Allah be upon him), and the one much loved by him, who said:

I memorized from the Messenger of Allah (peace and blessings of Allah be upon him): “Leave that which makes you doubt for that which does not make you doubt.” [At-Tirmidhi]

N.B. Interest is not doubtful; rather, it is Haraam. Therefore, we should not allow that money to remain in our possession. In some instances, the money cannot be given back to the owner. Shariah advices us to dispose of it by giving the money to the poor without any intention of attaining reward.

ويردونها على أربابها إن عرفوهم وإلَ تصدقوا بها لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحب ه )حاشية ابن عابدين ٦ / ٣٨5 )

AND ALLAH TA'AALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST

ANSWERED BY: Zaid Bhikhoo 

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

Islamic Date:٨ جمادى الأخرى ١٤٤١ 

English Date: 3 February 2020