What is the ruling regarding confirming judicial authority by widespread fame (*istifadah*) in a nearby town?

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If the town is close to the Imam's city, such that news reliably circulates (e.g., five days travel or less), it is sufficient to rely on widespread fame without formal witnessing to establish the authority. This view is held by Al-Shafi'i, although he has two opinions regarding the establishment of authority by fame in near localities. The companions of Abu Hanifa maintain that authority is established by widespread fame, making no distinction between near and far locations.