An Auction Within an Auction

Question

Question: An auction of a forest was announced. A group got ready to buy it and agreed among themselves that it would be bought jointly in the name of one person, with everyone remaining partners; after that it would be auctioned among themselves: whoever becomes its buyer at whatever profit, his profit would end right there, and the remaining partners would do the same. For example, Zayd took the auction lot for one hundred rupees, in which there are ten partners.

Answer

Since they are equal partners in the purchase, they will remain equal partners in the profit as well; an increase in profit merely through proposing a price is impermissible. Yes, if some partner also buys the shares of the other partners, then he alone will take the profit of their shares too. The ruling for the whole body of ten partners is the same as for the two partners.

Source: Fatawa Mahmudiyya

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