What is the ruling on a company that receives money to refrain from bidding or to submit a high price, knowing that the project owner has specified the maximum price?
It is not permissible for two competing companies to agree that one of them withdraws in exchange for a sum of money, due to the harm and deception involved for the project owner. This is considered consuming wealth unjustly.
However, if several companies submit bids, it is permissible to agree with some of the participants to pay them a sum in exchange for their withdrawal, provided that this is not done with all applicants, that those who withdraw are few, and that the withdrawing party is not someone whose withdrawal would significantly influence the bidding.
This agreement is permissible according to the Malikis in auctions and can be analogized to tenders. Nevertheless, the more pious and cautious approach is to avoid it.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 92973
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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