Shar‘i Ruling on Prize Committee (Bidding Committee): Is It Ribā?
Source: Fatāwā Muḥammadiyyah, Vol. 1, p. 667
❖ Question:
What is the Shar‘i ruling regarding a bidding committee (bolī kī committee)? If a person receives a lump sum of 70,000 rupees by bidding only 25,000, does this fall under the category of ribā (interest) or not?
❖ Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ‘alā Rasūlillāh, ammā ba‘d!
The mentioned arrangement clearly takes the form of ribā (interest) and qimār (gambling). It is therefore obligatory to avoid it in every situation.
◈ It is a well-known principle that currency notes are considered the equivalent of gold.
◈ Therefore, buying and selling currency, even if on cash, with increase or decrease is prohibited.
◈ And if it is done on credit—whether equal, with increase, or with decrease—it is also impermissible.
❖ Conclusion:
Based on this principle:
◈ The practice of bidding committees is impermissible in Sharī‘ah.
◈ It is necessary to refrain from it.
ھذا ما عندي والله أعلم بالصواب
