Is dealing with the "Economic Institution for Workers" for selling goods to employees in installments permissible شرعًا (religiously), with a quarter of the amount paid in advance and the rest paid over a year, and the dealing being through receiving collection slips from the institution to go directly to merchants, with the price of the goods being higher than the market price? And what is the ruling on someone who dealt with it out of ignorance of the ruling, and what should be done?

First: The scenario mentioned in the question is impermissible, because the institution does not buy something from merchants and then sell it to employees. Rather, it pays the price to the merchant and then installments it to the employee with an increase, and this is usury (riba). Even if the institution were to buy the commodity from the merchant, the transaction would still be forbidden and constitute a corrupt and impermissible sale. This is because it is not permissible to sell goods while they are still with the merchant; they must first be transported, as the Prophet (peace be upon him) said: "If you buy something, do not sell it until you take possession of it," and "He forbade goods from being sold where they are bought until the merchants take them to their homes."

Second: For the transaction to be permissible, the institution must genuinely buy the goods and transport them from their locations, and then sell them to the employee. It is not permissible to sell them before receiving them and transporting them from the merchant.

Third: If the transaction was conducted in this forbidden manner and the person involved did not know it was forbidden, then he is obligated to annul the contract, return the goods, and reclaim the installments he paid, if possible. If it is not possible, we hope that his repentance and determination not to do it again will be sufficient.