Is it permissible for a group of merchants to agree in advance on specific prices for entering a particular tender, and to divide the deal among themselves after one of them wins it, given their knowledge of the financial allocation for the deal?

It is not permissible for traders to agree on prices before the tender, as this harms the owner. This is deception and fraud that contradicts the Prophet’s (peace be upon him) saying: “He who deceives us is not of us,” and his saying: “Let people be; Allah will provide for some of them through others.” The Permanent Committee was asked about buyers colluding in an auction not to increase the price, and it answered that this is a prohibited form of selfishness and harm, and gives the seller the option (to cancel the sale) if he is defrauded. A Muslim must strive to ensure his earnings are pure, because every body nourished by ill-gotten gains is more deserving of the Fire.