The World Federation One Stop Fiqh
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Ruling 2571

If a person usurps a piece of gold that has been crafted, such as an earring, and melts it, he must return it to the owner along with the difference in its value before and after it was melted. And if he does not pay the difference in value but says, ‘I will make it like it was’, the owner does not have to accept his offer. Also, the owner cannot compel him to make it like it was.