Loan Transaction: Between Market Price and Riba
My question is regarding Riba. A very interesting case came to my knowledge. I will tell you about that and ask for your guidance. It is about a marriage which took place in Karachi in 1984. The man who was arranging for his daughter’s marriage asked his sister to lend him money for buying gold. The sister took the man to the gold shop and bought gold worth of 22000 Pak Rs. In 1999, 15 years after the sister gave him money for gold, she asked her brother to return the money. The brother said that he’d pay 22000 thousand Rupees as the gold cost 22000 in 1984 but the sister said that she would not take 22000 but she would take the same amount of gold which they bought in 1984. Now the problem is that the same amount of gold today cost up to 60000 which is 38000 higher than the original amount, but the brother insists that from 22000 she will get nothing. So the question is: how much the brother should pay to her sister? One very important thing is that at the time of the deal there was no contract since the deal was between the brothers and sisters. So how should we deal with this issue?
