Riba In Business Loan
In principle, riba is only a concern in loan transactions, not business partnerships. Without knowing the details of the agreement, it’s hard to give you a conclusive answer. However, if your uncle was sharing business profits with his friend then more than likely this was a business partnership . In that case if your uncle’s business was shut down then his friend can only demand the amount that he had originally invested. If your uncle has agreed to return an additional amount to cover for the cost of inflation then there’s no harm in it.