ANSWER:

This is indeed interest and not permissible for you.

Take that extra amount and give it to poor and needy Muslims in order to cleanse your wealth from this haram money. 

Our land was acquired by the government in 2018 for a project and they paid compensation for that only in 2021. According to the law if there is a delay in paying the compensation, they have to pay an additional amount which they call “interest”. Since there was a delay now they are trying to pay us this “interest”. Is this actually interest and is it halal for us?

Halal/Haram Matters, Riba |