One of the children picked up a lost watch in the Haram in Makkah, and has kept it with him until now, a period of more than four years. What should he do with it? Should he take it back to the Haram, or give its value in charity to one of the poor after checking what it is worth with a watch-seller? May Allaah reward you with the best reward.
Lost property in the Haram (the sanctuary in Makkah)
Question: 4588
Praise be to Allah, and peace and blessings be upon the Messenger of Allah and his family.
In the case of property lost in the Haram, it is not permissible for anyone to take it except the one who identifies it (the owner), because the Prophet (peace and blessings of Allaah be upon him) said: “Anything that is dropped there is not permissible for anyone except the owner who identifies it.” (Agreed upon)
The person mentioned has to return the property in question to the Supreme Court in Makkah to that they can hand it over to the committee responsible for property lost in the Haram. Thus he will free himself from blame, so long as he also repents to Allaah for his shortcomings if he did not announce the lost property in the past. And Allaah is the source of strength.
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Source:
Shaykh Ibn Baaz (may Allaah have mercy on him). - Fataawa Islamiyyah, 3/10