Does returning stolen goods to their owner exempt one from the punishment for theft?

The thief must be amputated if the conditions for amputation are met. The hadd (prescribed punishment) is not waived whether the stolen goods are returned or not, because returning stolen goods is another obligation, based on the Prophet’s (peace be upon him) saying: "The hand is responsible for what it has taken until it returns it." There is a difference of opinion regarding the permissibility of combining amputation and compensation for the thief if the stolen item is destroyed. The Hanafis are of the opinion that there is no compensation. The Malikis hold that compensation for the stolen item is due if it is destroyed and the thief is solvent. Whereas the Shafi’is, Hanbalis, and most scholars are of the opinion that compensation is obligatory in all cases, for amputation is the right of Allah, and compensation is the right of the servant.