THE EIGHTH COLUMN

Between faith and fraud: Why Islamic banking is back in focus

Mahaboob Shaik (name changed) invested ₹20 lakh in Bengaluru-based IMA. The non-banking finance firm claimed to offer ‘halal’ investments or financial products compliant with the Shariah. Earlier this month, IMA went bust, leaving Shaik and thousands in a lurch. The Islamic finance system has grown over the past few decades into a behemoth that attracts investors across faiths. While countries like the US, UK, and Sri Lanka have legalised it, why does India, with its large Muslim population, resist? Can regulatory measure prevent such scams? Click to read more.