Is it permissible to use usurious gains to pave a road in a residential neighborhood, given the state's failure to maintain roads in popular neighborhoods?
Depositing money in an interest-based bank and receiving interest is a major sin. It is not permissible to intentionally deposit money in interest-based banks to spend the interest on charitable acts or to benefit from it personally. However, if a Muslim repents after depositing his money in an interest-based institution, he must dispose of the interest by giving it away in charity for good and virtuous causes, based on the Almighty's saying: (O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged) [Al-Baqarah: 278-279]. It is not permissible for him to benefit from it by paying taxes or other things that would result in personal benefit.
If the road is private and leads to his house, it is not permissible to repair it with these funds, because the benefit would accrue to him. However, if the road is public and benefits him and others, there is no harm in repairing it with this money.
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