Committee with Bidding System: Sharʿi Ruling – Is It an Interest-Based Transaction?
Taken from: Aḥkām wa Masāʾil – Masāʾil al-Buyūʿ, vol.1, p.389
❖ The Question
Nowadays, committees with a bidding system are very common, and even influential people take part in them. What is their Sharʿi status? Do they fall under interest-based transactions (ribā) or not?
❖ The Answer
Al-ḥamdu lillāh, waṣ-ṣalātu wa-s-salāmu ʿalā Rasūlillāh, ammā baʿd:
Committees with bidding (boli wali committee) fall under the category of ribā (interest). In such a system, one individual gains more money while others contribute less, which is prohibited in Sharīʿah.
This arrangement clearly falls into the category of exchanging unequal amounts of wealth, which is described in aḥādīth of the Prophet ﷺ as ribā.
◈ Evidences from Ḥadīth
① In Ṣaḥīḥ al-Bukhārī and Ṣaḥīḥ Muslim, the Prophet ﷺ said:
«لاَ تَبِيْعُوْا الذَّهَبَ بِالذَّهَبِ إِلاَّ مِثْلاً بِمِثْلٍ، وَلاَ تُشِفُّوْا بَعْضَهَا عَلٰی بَعْضٍ، وَلاَ تَبِيْعُوْا الْوَرِقَ بِالْوَرِقِ إِلاَّ مِثْلاً بِمِثْلٍ، وَلاَ تُشِفُّوْا بَعْضَهَا عَلٰی بَعْضٍ، وَلاَ تَبِيْعُوْا مِنْهَا غَائِبًا بِنَاجِزٍ»
“Do not sell gold for gold except equal for equal, without increase. Do not sell silver for silver except equal for equal, without increase, and do not sell one side deferred against cash.”
(Ṣaḥīḥ al-Bukhārī, Ṣaḥīḥ Muslim)
② In Ṣaḥīḥ Muslim, the Prophet ﷺ said:
«اَلذَّهَبُ بِالذَّهَبِ، وَالْفِضَّةُ بِالْفِضَّةِ … فَمَنْ زَادَ أَوِ اسْتَزَادَ فَقَدْ أَرْبٰی، الْآخِذُ وَالْمُعْطِيْ فِيْهِ سَوَاءٌ»
“Gold for gold, silver for silver… whoever adds or demands an addition has engaged in ribā. The one who gives and the one who takes are both equal in sin.”
(Ṣaḥīḥ Muslim)
③ Also in Ṣaḥīḥ al-Bukhārī and Ṣaḥīḥ Muslim:
«اَلذَّهَبُ بِالذَّهَبِ رِبًا إِلاَّ هَاءَ وَهَاءَ، وَالْوَرِقُ بِالْوَرِقِ رِبًا إِلاَّ هَاءَ وَهَاءَ»
“Gold for gold is ribā unless it is hand-to-hand; silver for silver is ribā unless it is hand-to-hand.”
◈ Evidence from the Qur’an
Allah says:
﴿وَأَحَلَّ ٱللَّهُ ٱلۡبَيۡعَ وَحَرَّمَ ٱلرِّبَوٰاْۚ﴾
(al-Baqarah: 275)
“Allah has permitted trade and forbidden interest.”
❖ Conclusion
- A bidding-based committee, in which a person takes more in exchange for less, is ribā and thus ḥarām.
- All participants become partners in the sin, since the ḥadīth makes the giver and taker of ribā equal in guilt.
ھذا ما عندي، والله أعلم بالصواب
