A company that collects money and then distributes it

Question

Question: Respected Mufti! In order to provide business people with a lump sum in time of need, a company has been formed on the pattern of a lot-drawing among friends. The manner in which it collects money from people and then distributes it equally is, in brief, as follows. For example, there is a group of twenty-five members, in which each person pays 2 rupees a day for fifteen days. Thus, from 25 persons, and so the amount collected from 25 persons over fifteen days comes to 600 rupees.

Answer

(1) No. (2) No. (3) No. (4) This is theft from the government; upon its disclosure there is danger to life, property, honour and everything; let him first arrange protection against that.

Source: Fatawa Mahmudiyya

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