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Is it Halal to Bid on My Own Goods at Auctions?

Answered as per Hanafi Fiqh by Muftionline.co.za

Q: Please feature an article on auctions. I buy many items that go on auction. What I do is that I buy from one auction at a cheap price clean refurbish and put it in another salesroom and fetch a higher price. I some time bid on my own goods to push the prices up. I want to know if my doing so is Halaal?

There are a few types of auctions that take place:

  1. People put goods to auction off. Either they have too much stock or it’s broken or it’s a dead line or they moving or they renovating.
  2. Liquidation sale. A company has folded up and the company that is owed gives all contents to auctioneers to recover debt. The lawyer does all that.
  3. Government sale. The government auctions off items because it needs to get debt of the people. People have imported containers and wrong fully declared or storage bills get to high and they abandon the shipments.
  4. Houses gets auctioned off as the people cannot pay the bond or some other reason 5th.sheriff of the Court. Sheriff Goes and attach peoples goods because of some debts not paid.

There must be more reasons. If the Jamiat can explain further. Also if we can buy anything that goes up on auction?


A: It is permissible to purchase government expropriated property. Similarly, property that was taken as collateral can be sold when the debtor is unable to pay the bond.

باب التصرف في الرهن والجناية عليه  وجنايته أي الرهن على غيره ( توقف بيع الراهن وهنه على إجارة مرتهنه أو قضاء دينه فإن وجد أحدهما نفذ وصار ثمنه رهنا ) في صورة الإجازة ( وإن لم يجز ) المرتهن البيع ( وفسخ ) بيعه ( لا ينفسخ ) بفسخه في الأصح ( و ) إذا بقي موقوفا ف ( المشتري بالخيار ( إن شاء صبر إلى فكاك الرهن أو رفع الأمر إلى القاضي ليفسخ البيع ) وهذا إذا اشتراه ولم يعلم أنه رهن  ابن كمال. (رد المحتار 6/ 508) 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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