What is the legal ruling (hukm shar'i) on Tawarruq as practiced in Islamic banks, which some scholars have permitted, while others consider it forbidden based on the banks' method of implementing it, and what is the way to repent and expiate sins for someone who was compelled to take a Tawarruq loan to pay off their debts and improve their financial circumstances?

Commodity Murabaha (Tawarruq) is permissible under certain conditions, and forbidden in two scenarios: First, 'Inah sale (buy-back agreement), where you sell the commodity to the same person from whom you purchased it. Second, "Organized Tawarruq" or "Bank Tawarruq," where you buy a commodity from the bank in installments and authorize it to sell it for cash. This type has been forbidden by the Islamic Fiqh Academy because it resembles 'Inah and leads to a violation of valid possession (qabd shar'i), and also because the reality of the transaction is based on a cash financing with an increment.

Furthermore, organized Tawarruq involves a fictitious sale, and the bank's agency contradicts the interest of the person seeking the Tawarruq. There is also a guarantee for the final buyer, and it falls under the forbidden 'Inah sale.

The questioner's statement that major scholars permit this sale is incorrect. Those who permit it are the Sharia (definition) committees in some banks, and many have refuted their permissibility.

As for the questioner, since he trusted those committees and was unaware of the weakness of their opinion, we hope that there is no sin upon him, with the firm intention not to return to such transactions in the future.