Dr. Shahid Hasan Siddiqui requests SC to hear appeals in Riba case on day to day basis
Says interest-based products of Islamic Banks endorsed by FSC may kindly be stuck down
KARACHI ( Web News )
Well-known Scholar Chairman Research Institute of Islamic Banking and Finance, Dr. Shahid Hasan Siddiqui has requested the apex court to hear State Bank of Pakistan’s appeal in Riba case on day to day basis.
According to an open letter written to Chief Justice of Supreme Court Justice Umar Atta Bandiyal, a well-known Schollar Dr. Shahid Hasan Siddiqui has requested that court may start hearing on day to day basis over appeals filed by state bank some banks apparently with malafide intentions against judgment of Federal Shariat Court dated April 28, 2022 in Riba case erroneous endorsement of Shariah repugnant and interest-based products of Islamic banks by Shariat Court not challenged even by SBP.
It has been submitted in letter that the appeal filed by State Bank of Pakistan (SBP) with Shaiat Appellate Bench of Supreme Court of Pakistan (SAB) is apparently with malafide intentions.
The appeal says the judgment of the FSC dated 28 04 2022 has not carried out the directions contained in the aforesaid remand order (of SAB).
It is humbly pointed out that this omission by FSC in their judgment announced after about 20 years is indeed surprising and shocking. It is further submitted that SBP has surprisingly not challenged erroneous endorsement by FSC of Shariah repugnant and interest-based products being used by Islamic banks in judgment dated April 28, 2022, and that too without proper investigations.
It may also be submitted that the issue of inflation and indexation has gained momentum as Islamic Banks for last 20 years or so are following bench-marks of interest-based banks. The Profit and Loss Sharing System (PLS) is the essence of Islamic banking and solution of inflation is inbuilt in this system.
The Judgment of FSC referred to above observes that the products of Islamic Banking are issued by the State Banks are reviewed and approved from Shariah Board of the State Bank in the light of Islamic injunctions.
Dr. Shahid Hasan Siddiqui says in open letter that it is submitted that the judgment of Justice Ghazi does not form part of the judgment announced by SAB on December 23, 1999.
Dr. Shahid Hasan Siddiqui says that the Riba Case has been on trial in Shariat Courts for over 30 years notwithstanding that Article 38(f) of the Constitution says that State shall eliminate Riba as early as possible The Riba case was remanded by SAB in early 1992 to FSC but FSC announced the judgment after over 20 years wherein among other things, FSC endorsed Shariah repugnant and interest-based products of Islamic Banks as being Islamic. This is creating anxiety in the minds of innocent Muslims who feel that interest will not possibly be eliminated even in coming decades in Pakistan, he said.
Dr. Shahid Hasan Siddiqui said in his letter that the filing of appeals by SBP / some banks are being taken to mean by many as yet another deliberate attempt to bring obstacles in the process of Islamisation of Islamic Economic System in Pakistan. In any case taking advantage of many mistakes and omissions conceptual issues etc in the Judgment dated April 28, 2022 of FSC powerful lobbies may also try to adopt delaying tactics during the processing of appeals against the judgment of FSC, he said.
It is humbly requested that the appeals filed by SBP/ some banks may kindly be heard on day to day basis and the Shariah repugnant products and interest-based products of Islamic Banks endorsed by FSC may kindly be stuck down as being un-Islamic, letter says.
Dr. Shahid Hasan Siddiqui said that I shrink and shiver of a possible disastrous fall out of FSC judgment of April 28, 2022, if not corrected immediately, as at some point of time these Islamic banks may also be declared as interest based banks.