Source: Excerpt from the book "Ahkām wa Masā’il Kitāb-o-Sunnat ki Roshni Main" by Shaykh Mubashir Ahmad Rabbani
Is a “bidding-based committee” (بولی والی کمیٹی) permissible in Islam?
Its structure is as follows:
Ten individuals contribute ₹1000 each into a committee for ten months. Every month, one person receives the total amount of ₹10,000. However, instead of giving the full amount to one person each month, a bidding process is held:
Whoever agrees to take a lesser amount receives the committee. For example, one person says: “I’ll take ₹9000 and leave ₹1000,” while another says: “I’ll take ₹8000 and leave ₹2000.” The person who bids the lowest amount receives the ₹8000, and the remaining ₹2000 is equally distributed among the rest of the committee members.
What is the Sharʿī ruling on such a committee?
Islam’s ruling on ribā (usury) is clear and firm. Whenever two items of the same kind are exchanged, the following conditions must be met:
✔ There must be equal quantity
✔ The exchange must be immediate (hand to hand)
Any exchange of the same commodity with an unequal amount is ḥarām (forbidden) and constitutes ribā.
Sayyidunā Abū Hurayrah رضي الله عنه narrated that the Messenger of Allah ﷺ said:
الذَّهَبُ بِالذَّهَبِ، لَا فَضْلَ بَيْنَهُمَا، وَالْوَرَقُ بِالْوَرَقِ، لَا فَضْلَ بَيْنَهُمَا
“Gold for gold – there must be no excess; silver for silver – there must be no excess.”
During that time, dīnār referred to gold coins and dirham to silver coins. The Sharīʿah prohibited exchanging these in unequal amounts.
Sayyidunā ʿUthmān bin ʿAffān رضي الله عنه narrated that the Messenger of Allah ﷺ said:
لَا تَبِيعُوا الدِّينَارَ بِالدِّينَارَيْنِ، وَلَا الدِّرْهَمَ بِالدِّرْهَمَيْنِ
“Do not sell one dīnār for two dīnārs, nor one dirham for two dirhams.”
The bidding-based committee involves a transaction of unequal amounts between the same monetary commodity, which falls under the category of ribā and is explicitly ḥarām and invalid.
This is a sale of the same item (money) with an increase or decrease, and therefore, it is impermissible in all forms.
However, a committee where:
✔ Each person deposits a fixed amount,
✔ Receives the exact same total (without bidding),
✔ And there is no gain or loss for any member,
— such a committee is permissible and considered a mutual form of cooperation.
These types of committees help those who cannot fulfill their needs all at once. Through them, they can manage essential expenditures.
Every Muslim is obligated to confine himself to ḥalāl earnings.
Allah is the One who grants success and ability.
❖ Question:
Is a “bidding-based committee” (بولی والی کمیٹی) permissible in Islam?
Its structure is as follows:
Ten individuals contribute ₹1000 each into a committee for ten months. Every month, one person receives the total amount of ₹10,000. However, instead of giving the full amount to one person each month, a bidding process is held:
Whoever agrees to take a lesser amount receives the committee. For example, one person says: “I’ll take ₹9000 and leave ₹1000,” while another says: “I’ll take ₹8000 and leave ₹2000.” The person who bids the lowest amount receives the ₹8000, and the remaining ₹2000 is equally distributed among the rest of the committee members.
What is the Sharʿī ruling on such a committee?
❖ Answer:
Islam’s ruling on ribā (usury) is clear and firm. Whenever two items of the same kind are exchanged, the following conditions must be met:
✔ There must be equal quantity
✔ The exchange must be immediate (hand to hand)
Any exchange of the same commodity with an unequal amount is ḥarām (forbidden) and constitutes ribā.
Sayyidunā Abū Hurayrah رضي الله عنه narrated that the Messenger of Allah ﷺ said:
الذَّهَبُ بِالذَّهَبِ، لَا فَضْلَ بَيْنَهُمَا، وَالْوَرَقُ بِالْوَرَقِ، لَا فَضْلَ بَيْنَهُمَا
“Gold for gold – there must be no excess; silver for silver – there must be no excess.”
Reference: Ṣaḥīḥ Muslim: 1588/85
,
Reference: Musnad Aḥmad: 485/2, Ḥadīth 10298
During that time, dīnār referred to gold coins and dirham to silver coins. The Sharīʿah prohibited exchanging these in unequal amounts.
Sayyidunā ʿUthmān bin ʿAffān رضي الله عنه narrated that the Messenger of Allah ﷺ said:
لَا تَبِيعُوا الدِّينَارَ بِالدِّينَارَيْنِ، وَلَا الدِّرْهَمَ بِالدِّرْهَمَيْنِ
“Do not sell one dīnār for two dīnārs, nor one dirham for two dirhams.”
Reference: Ṣaḥīḥ Muslim: 1585/78
,
Reference: al-Sunan al-Kubrā by al-Bayhaqī: 5/278, Ḥadīth 10485
❖ Sharʿī Verdict:
The bidding-based committee involves a transaction of unequal amounts between the same monetary commodity, which falls under the category of ribā and is explicitly ḥarām and invalid.
This is a sale of the same item (money) with an increase or decrease, and therefore, it is impermissible in all forms.
❖ Permissible Committee:
However, a committee where:
✔ Each person deposits a fixed amount,
✔ Receives the exact same total (without bidding),
✔ And there is no gain or loss for any member,
— such a committee is permissible and considered a mutual form of cooperation.
These types of committees help those who cannot fulfill their needs all at once. Through them, they can manage essential expenditures.
Every Muslim is obligated to confine himself to ḥalāl earnings.Allah is the One who grants success and ability.
