Auction Bidders Agreeing Among Themselves on a Price Limit

Question

Question: Several associates who are in the auction business agree among themselves that they will buy goods worth, say, ten thousand rupees for “jamʿ” (?) seven thousand rupees, in such a way that no one will bid above “jamʿ” (?) or seven thousand rupees; thus the owner, thinking the goods are worth only that much, closes the bidding. (b)

Answer

(a) Not bidding above “jamʿ” (?) or seven thousand rupees and not buying above that is in itself correct, but making this conspiracy with the intention of deceiving is not correct. After the purchase, bidding in the manner described, or one of them buying at a higher price, when that buyer and the other partners were all partners in it, is not correct, because in this case he…

Source: Fatawa Mahmudiyya

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