- FBR introduced the “Auction module” in its weboc system in 2021.
- 103 Vehicles uploaded using false user identities: FBR.
- Seven eighty lodges, 13 individuals arrested in connection with scam.
Islamabad: The Federal Board of Revenue (FBR) has found a major scandal and found customs officers involved in collaboration with the motor registration authorities (MRAS) and car dealers in the regulation of over 100 smuggled vehicles, The news Reported Thursday.
It may be remembered that in August 2021, the FBR is to strengthen the control mechanisms and prevent the abuse of auction vehicles in August 2021.
This system improvement was aimed at tackling the question of several vehicles registered against documents issued by the customs after the auction of confiscated smuggled vehicles.
Through this module, MRAs were enabled to verify auctioned vehicle information online before registration, which significantly reduced the dependence on paper -based manual verifications. The goal was to strengthen institutional controls and easy legitimate buyers.
Despite these reforms, however, reports emerged in July 2025 on abuse of the aforementioned auction module. In response, FBR immediately initiated an investigation into the case.
Since the module’s launch, details of 1,909 vehicles had been uploaded on the system. After detailed control, it was discovered that 103 of these vehicles had been fraudulent uploaded by false user identities. MRAs had already registered 43 out of these 103 smuggled vehicles, which effectively gave them an appearance of legal approval.
Based on a digital audit and internal studies identified FBR user’s IDs through which fraud was committed. As a result, on July 9, 2025, FBR suspended a deputy and an assistant collector whose credentials had been abused in this crime.
The study also revealed that this was part of a wider criminal rack involving officials from MRAS and car dealers. Recognizing gravity in the problem determined the FBR that the case justified actions in addition to the internal disciplinary procedure.
Accordingly, a formal request was made from FBR on July 9, 2025, on the constitution of a joint investigative committee (JIT), which included senior officers from the FIA, Customs and Intelligence Agencies. Jit was tasked with a comprehensive probe into scams, including manipulation of customs digital system.
After FBR’s formal complaint to the FIA dated July 10, 2025, Jit began his study. As a result, on August 28, 2025, the FIA filed a four against already identified officers after they were found involved in fraudulent legalization of smuggled vehicles.
On Wednesday, these persons were formally arrested by the FIA.
It is also relevant to mention that customs enforcement has so far filed seven fours and arrested 13 individuals in connection with this wider scam.
