- FBR introduced the “auction module” in its weboc system in 2021.
- 103 fraudulently charged vehicles using false user identities: FBR.
- Seven Firs Lodges, 13 people arrested in relation to fraud.
Islamabad: The Federal Income Board (FBR) has unearthed an important scandal and has found customs officers involved in collusion with the motor registration authorities (MRA) and car vendors in the regularization of more than 100 smuggling vehicles, The news reported on Thursday.
It can be remembered that to strengthen the control mechanisms and avoid the misuse of auctioned vehicles, FBR in August 2021 introduced the “auction module” into its weboc system.
This improvement of the system aimed to address the problem of multiple vehicles that are registered against documents issued by Customs after the auction of confiscated smuggled vehicles.
Through this module, the MRA allowed to verify the details of the auctioned vehicle before the record, which significantly reduces the dependence of paper -based manual verifications. The objective was to strengthen institutional controls and facilitate legitimate buyers.
However, despite these reforms, the reports emerged in July 2025 with respect to the misuse of the aforementioned auction module. In response, FBR immediately initiated an investigation into the matter.
Since the launch of the module, the details of 1,909 vehicles had been charged in the system. After detailed scrutiny, it was discovered that 103 of these vehicles had been fraudulently loaded using false users. The MRA had already registered 43 of these 103 smuggling vehicles, effectively granting them an appearance of legal authorization.
According to a digital audit and internal investigations, the FBR identified the user ID through which fraud was committed. As a result, on July 9, 2025, FBR suspended an attached collector and an assistant collector, whose credentials had been misused in the commission of this crime.
The investigation also revealed that this was part of a broader criminal racket that involved MRA officials and car traffickers. Recognizing the seriousness of the problem, FBR determined that the matter justified the action beyond internal disciplinary procedures.
Consequently, a formal FBR application was made on July 9, 2025 for the constitution of a JUDE INVESTIGATION COMMITTEE (JIT), which includes senior FIA officials, customs and intelligence agencies. The JIT had the task of an integral probe on the scam, including manipulation of the customs digital system.
After FBB’s formal complaint to the FIA dated July 10, 2025, the JIT began its investigation. As a result, on August 28, 2025, the FIA presented a FIR against the already identified officers, after being found involved in the fraudulent legalization of smuggling vehicles.
On Wednesday, these people were formally arrested for the FIA.
It is also pertinent to mention that the customs application has so far presented seven FIR and arrested 13 people in relation to this broader scam.
