ISLAMABAD: In a major crackdown on corruption within its own ranks, the Federal Board of Revenue (FBR) has taken action against senior officers and staff allegedly involved in the fraudulent legalization of smuggled vehicles, exposing a racket that manipulated digital customs systems in collusion with motor registration authorities and car dealers.
The scandal revolves around misuse of FBR’s Auction Module, a system introduced in 2021 to prevent the registration of multiple vehicles against auction documents of confiscated cars. The digital reform was meant to plug loopholes and facilitate legitimate buyers, but internal audits revealed that 103 smuggled vehicles were fraudulently uploaded into the system using fake user IDs. At least 43 of these vehicles had already been registered by Motor Registration Authorities, giving them the appearance of legal clearance.
Investigations traced the fraud back to accounts belonging to two senior customs officials—a Deputy Collector and an Assistant Collector—whose user credentials were allegedly misused. Both officers were suspended on July 9, 2025, as the FBR moved swiftly to contain the scandal.
Recognizing the scale of the crime, which pointed to a wider nexus of officials, car dealers, and MRAs, FBR requested the constitution of a Joint Investigation Team (JIT) comprising FIA, Customs, and intelligence officials. Following FBR’s complaint, the FIA lodged an FIR on August 28, 2025, and arrested several officers found directly involved in the racket. Customs Enforcement has separately filed seven FIRs and arrested 13 individuals linked to the smuggling and fraudulent clearance of vehicles.
FBR termed the development a warning shot to corrupt elements within the organization, stressing that its zero-tolerance policy would be enforced regardless of rank. “Criminal elements within the organization will be identified, exposed, and proceeded against in accordance with the law,” the statement read, reaffirming that the drive for accountability and integrity remains central to FBR’s reform agenda.
