On August 20, 2008 a fatwa appeared in several local newspapers declaring the prevalent Islamic banking system as impermissible. It sowed seeds of confusion in the mind of common Muslims, because a number of prominent Scholars were the signatories of that fatwa including:
Maulana Salimullah Jan [NOTE: The news did a mistake in last name and wrote "Jan" instead of "Khan"] (President of Tanzeematul Madaris and Wafaqul Madaris), Mufti Abdul Hameed Deenpuri (Jamia-al-Aloom Islamia, Banori Town), Mufti Habibullah Sheikh (Jamia Islamia, Clifton), Mufti Rafiq Ahmed and Mufti Saif Alam (Banori Town), Mufti Abdullah (Khairul Madaris, Multan), Mufti Ghulam Qadir (Darul Aloom Haqqani, Akora Khattak), Mufti Ahmed Mumtaz (Jamia Khulafa-e-Rashdeen, Karachi), Mufti Zarwali Khan (Jamia Ahsan-al-Aloom), Mufti Ehteshamul Haq (Jamia Rasheedia, Turbat, Mekran), Maulana Saeed Ahmed Jalalpuri (Alami Majlis Khatam-e-Nabuwwat), Maulana Dr Manzoor Ahmed Mengal (Jamia Farooqia), Mufti Hamid Hassan (Darul Aloom, Kabirwala), Mufti Abdul Ghaffar (Jamia Ashrafia, Sukkur), Mufti Saaduddin (Jamia Ilmia, Lakki Marwat), Mufti Gul Hassan (Jamia Rehmia, Sarki Road, Quetta), Mufti Rozi Khan (Darul Afta Rahania, Quetta), Mufti Qazi Salimullah (Darul Huda, Khairpur), Nazir Ahmed Shah (Jamia Farooq-e-Azam, Faisalabad), Mufti Saeedullah (Jamia Arabia Naeemul Islam, Quetta), Mufti Samiullah (Jamia Farooqia).
Do note that Maulana Salimullah Khan saheb is a teacher of Mufti Taqi Usmani saheb, who is an expert in the fields of Islamic Jurisprudence, Economics, Hadith and Tasawwuf and has played a key part in the move toward interest free banking and the establishment of Islamic financial institutions. He is considered to be an authority on this subject.
On 4th of September, 2008 a reply from Shaikh Mohammad Makki Hijazi (Lecturer at Masjidul Haram), Allama Abdul Hafeez Makki (Central Ameer of International Khatam e Nabuwwat Movement IKNM) and other leaders of IKNM appears in the local newspapers.
On September the 14th, 2008, Dar ul Uloom Karachi issued a fatwa which clarifies the situation. A scanned copy is given here for reference. Signed by following eminent scholars:
Mufti Taqi Usmani saheb
Mufti Afzal Ali Rabbani saheb
Mufti Abdurrauf Sakkharwi saheb
Mufti Mahmud Ashraf Usmani saheb
Mufti Muhammad Abdul Mannan saheb
Similarly, a rather detailed fatwa was issued by Dar ul Uloom Karachi on 19th September, 2008. A scanned copy of it can be viewed here.
I respect both groups of Ulema and my only intent here is to show both sides of the story. They rightly said "The truth is that a muslim should follow any aalim whose fatwa he trusts and sincerely believes that the aalim is capable of giving an authentic fatwa which is not based on ignorance or self interest".
I believe Mufti Taqi Usmani saheb is an expert on the subject and a learned scholar who had spent his whole life in researching that subject. And this is the reason why he has great following both locally and internationally. I praise and pray for Mufti Taqi Usmani saheb and his talented team.