Question No: 2 Tripda wished to start its transportation services in Pakistan and was interested to get a fleet of cabs and some other heavy vehicles for university trips, family gatherings, cab recovery and marriage functions etc. Tripda Management was really sensitized about RIBA and concerned to avoid it. Tripda came to know that a leading Islamic Bank; namely My Bank, could well cater their needs. Tripda management was blank when it comes to Islamic Banking but strongly believed in Shariah compliance function of My bank. Facility was arranged. Following are some highlights of the facility. I. Bank signed Master Ijara agreement with Tripda containing comprehensive understanding of the terms of Ijara Muntahia Bittamleek (IMT) to avoid writing separate Ijara for each vehicle of the fleet. All succeeding transactions are supposed to carry same terms as agreed in Master IMT Agreement. II. Some cabs were available in bank-owned showroom of cabs, but rest cabs and heavy vehicles were to be procured. Bank asked Tripda Management to give their minute specifications and signed Ijara agreement for both available cabs and cabs/heavy vehicles to be procured yet. Bank started the rent of all fleet from the day of delivery of exists without stating that rent on Heavy vehicles and cabs to be procured shall be considered advance rental. However, no rent is charged from the date of signing of IMT Contract. III. During first 6 month of the period of IMT, Tripda didnt use most of the heavy vehicles in fleet and asked bank to waive off rent as it has not used the usufruct. IV. Bank also charge Tripda Arboun at the time of signing Ijara agreement and treated it as deposit in current account. V. Bank asked Tripda to get vehicles insured for the period of Ijara and adjust the amount in rentals. All usage based expenditure are maintained by Tripda. VI. IMT was agreed on identified assets providing identified usufruct. However, Tripda violated the normal usage of assets and rented them for racing purposes, whereby 5 cabs got acute damage and became unfit for purpose. Bank refused to get cabs repaired and even not suspended rentals stating that it was an open breach by Tripda. Tripda was confused that it was agreed that risk of damage would be borne by Bank and that bank would suspend the rent. VII. In a religious gathering, a scholar met with CEO of Tripda. CEO told his initiative to avoid RIBA and about IMT. Scholar then told him that Ijara and Sale cannot be combined in Islamic fiqh and asked him how would Tripda gain the ownership legitimately as Tripda is paying inflated rentals (i.e. paying sale price with rentals). CEO got really confused. VIII. In third year of IMT, earthquake totally destroyed 10 cabs that are crushed by destruction of the garage. Tripda was worried about the excessive/inflated rental (in excess of the rent) it paid to the bank for the purpose of attaining ownership of leased assets destroyed in earthquake and Tripda was also confused as to whether it would have replacement or not?

As an Islamic Banker, please comment and conduct a Shariah appraisal of above scenario. Giving your verdict without any mentioning of Shariah rationale shall not earn any marks.