All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

Muslim jurists have permitted auctions, provided they adhere to Islamic guidelines. These include avoiding Najsh (This refers to the act of artificially inflating the price of an item by bidding on it without any intention to purchase it. The purpose is often to drive up the price for others who genuinely want to buy the item). They also include avoiding Tadlees (This refers to any form of deception or fraud that is used to mislead someone into entering into a contract or agreement). Moreover, it is permissible to charge a fee for participating in an auction, as long as it is limited to covering the actual costs involved, as this is considered an administrative expense.

Resolution No. (73) of the Islamic Fiqh Council states: "There is no Islamic prohibition to collecting a participation fee (the cost of the conditions booklet, not exceeding its actual value), as it is considered a price for it."

If the participation fee charged by the seller for the auction exceeds the actual costs, then it would be considered taking people's wealth unjustly. Allah says {what means}, 'O you who have believed, do not consume one another's wealth unjustly.' (An-Nisaa`, 29).

Among the actual costs of the auction, participation fee is what the intermediary companies that organize the auction between the seller and buyer charge. This is permissible in Islamic law, as it is considered a fee for the intermediary's services.

In conclusion, if the intermediary company, not the seller, charge the auction fees, then it is permissible in Islamic law, provided that the practices of Najash and Tadlees are avoided. And Allah the Almighty knows best.