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Text and translation
English translation
2412. It was narrated from Thawbān, the freed slave of the Messenger of Allāh ﷺ, that the Messenger of Allāh ﷺ said: "Anyone whose soul leaves his body and he is free of three things, will enter Paradise: Arrogance, stealing from the spoils of war, and debt." (Sahih)
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Commentary
Spoils of war is a common property of all the Muslims of a state prior to its distribution. As it is a mortal sin to steal it, in the same way making an embezzlement in the common property of Muslims is a mortal sin. As wealth of public treasury cannot be used for personal needs, in the same way, funds collected for mosques and religious schools, or for other welfare organizations, cannot be spent for personal needs. These funds should be used only for the purposes collected. Any officeholder of the welfare organization cannot spend it for any other purpose. Doing so is sure embezzlement.
Intentionally not returning the debt is a mortal sin, and it is an obligation on every Muslim to avoid such a great sin.