A form of pooling contributions together

Question

Question: (1) In our neighbourhood a number of members deposit money: for example, each member puts in one hundred rupees, and with twenty members it comes to two thousand. Then bids are called on this sum, and it is given to whoever offers more. What is the ruling on bidding for it? Is this not interest? Is it permissible or not? After all, he has already deposited the money, i.e. one hundred rupees — so why is bidding necessary? There is a disagreement about this. (2)

Answer

(1) This form is impermissible. (2) This form is also impermissible.

Source: Fatawa Mahmudiyya

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