ISLAMABAD, SEP 4 (DNA): The Federal Board of Revenue (FBR) has unearthed a major scandal and found Customs officers involved in collusion with the Motor Registration Authorities (MRAs) and car dealers in the regularisation of over 100 smuggled vehicles.
It may be recalled that in order to strengthen control mechanisms and prevent the misuse of auctioned vehicles, FBR in August 2021 introduced the “Auction Module” in its WeBOC system.
This system enhancement was aimed at addressing the issue of multiple vehicles being registered against documents issued by Customs after the auction of confiscated smuggled vehicles.
Through this module, MRAs were enabled to verify auctioned vehicle details online before registration, significantly reducing reliance on paper-based manual verifications. The goal was to both strengthen institutional controls and facilitate legitimate buyers.
However, despite these reforms, reports emerged in July 2025 regarding the misuse of the aforementioned Auction Module. In response, FBR immediately initiated an inquiry into the matter.
Since the module’s launch, details of 1,909 vehicles had been uploaded on the system. Upon detailed scrutiny, it was discovered that 103 of these vehicles had been fraudulently uploaded using fake user identities. MRAs had already registered 43 out of these 103 smuggled vehicles, effectively granting them an appearance of legal clearance.
Based on a digital audit and internal investigations, the FBR identified the user IDs through which the fraud was committed. As a result, on July 9, 2025, FBR suspended one Deputy Collector and one Assistant Collector, whose credentials had been misused in the commission of this crime.
The investigation further revealed that this was part of a wider criminal racket involving officials from MRAs and car dealers. Recognising the gravity of the issue, FBR determined that the matter warranted action beyond internal disciplinary proceedings.
Accordingly, a formal request by FBR was made on July 9, 2025 for the constitution of a Joint Investigation Committee (JIT), comprising senior officers from the FIA, Customs and Intelligence Agencies. The JIT was tasked with a comprehensive probe into the scam, including the manipulation of the Customs digital system.
Following FBR’s formal complaint to FIA dated 10th July, 2025, the JIT commenced its investigation. As a result, on 28th August, 2025, the FIA lodged an FIR against already identified officers, after being found involved in fraudulently legalising smuggled vehicles.
On Wednesday, these individuals were formally arrested by FIA.
It is also pertinent to mention that Customs Enforcement has so far lodged seven FIRs and arrested 13 individuals in connection with this broader scam.
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