The ruling on the produce of unlawfully held land
Question
A certain man’s father steals. He also has farmland, but stolen money has been put into the farm and into the oxen used for farming, and he runs his worldly business very well. His grandfather also used to steal, and he would also seize land. Now, in the capital — land and money — that the father and grandfather have amassed, there is some from theft and some from pledge (rahn) (?), and also some of the household’s own. Which of this land is haram and which is halal?
Answer
Any item or land about which it is known that it is stolen — using it, eating and drinking from it, is all impermissible; it is necessary to return it to its true owner; if he has died, he should return it to his heirs; if the owner is not known, he should give it away as sadaqa, so that he is freed from the punishment of the Day of Resurrection.
Source: Fatawa Mahmudiyya
Preview. The full text opens with JavaScript enabled.