Court hearing for Islamic mortgage dispute

Mon, 14 Nov 2011
A financial dispute regarding Islamic mortgages will now be played out in court.

Around 200 families in Canada have seen their home loan arrangements left in tatters after United Muslim (UM) Financial was ordered into receivership, CBC News reports.

Islamic mortgages taken out by households with the lender amounted to around C$32 million (£19.7 million) - and the court is to now determine what will happen to these deals.

Afroz Kapadia, spokesman for United Muslim Homeowners, said: "At this time our main focus is to work with all stakeholders to ensure that the legal and moral interests of the families affected by this case are protected."

According to the receiver in the case, the head of UM Financial Omar Kalair has failed to reveal the location of the company's assets.

In addition, it has been suggested the group purchased significant amount of precious metals, as well as paying in proceeds to its Shariah board, in the weeks leading up to the receivership.

Mr Kalair had earlier written a letter to all of the bank's clients to thank them for their business down the years and to explain it had terminated its mortgage investment .
Salaam-u-Allaikum
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