Question
I am asking a question on behalf of a trust who runs masjid and madressas, schools and clinics. We had an executive committee meeting in which couple of members said to deposit excess money which we have, in interest bearing account and use that money for roads, toilets, walls etc. There was disagreement, most members disagreed and was agreed to ask a Mufti to address the question.
Answer
The ruling of our Darul Ifta is that it is impermissible to use interest money for public services i.e. making roads, building toilets, constructing walls etc. The only way to dispose of the interest money is to give it away to the poor (ideally to poor Muslims who are eligible to receive Zakaat) as Sadaqah without making any intention of any reward.
Checked and Approved By:
Mufti Muhammed Saeed Motara Saheb D.B.
References
فتاوی محمودیہ ، ج۲۴، ص۴۳۱، مکتبه محمودیہ