Does this have any basis in Islam
Correct me if im wrong but it even happened in Prophet'S (pubuh) time?
No, the dowry system does not have any basis in Islam.
In Arab countries, the Islamic system operates, whereby the prospective groom provides dowry, and settles a sum of money - in advance when or if required by the prospective bride - known as 'Mahr', which is her right, according to the Law.
A Muslim man cannot enter into marriage unless, until, he gives the dowry, according to his financial status. The wedding is supposed to be the responsibility of the groom, in that he is required to pay all costs for it. Though, if both bride and groom, as well as their families, wish, both may contribute to the costs of the wedding.
All gifts given to the bride belong to her, she - nor her family - are required to give any money to the groom or his family. Of course, the bride's family will always give a gift or two to the groom, but they are not obliged to buy cars, fridges or set up businesses for him!
The idea of 'jahaiz' originates in India and Hinduism.