FBR Admits to Corruption in Smuggled Vehicle Auction, Cracks Down Against Officers

In its ongoing efforts to uphold transparency, accountability, and institutional integrity, the Federal Board of Revenue (FBR) has taken decisive action against corruption within its ranks. Following reports of misuse of its Auction Module in July 2025, the FBR has launched a comprehensive investigation, leading to the suspension of officials, arrests, and the formation of a Joint Investigation Team (JIT). The Auction Module, introduced in August 2021 as part of FBR’s WeBOC system, was designed to prevent the misuse of documents issued by Customs after the auction of confiscated smuggled vehicles. By enabling Motor Registration Authorities (MRAs) to verify auctioned vehicle details online, the system aimed to reduce reliance on manual verifications and strengthen institutional controls. 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 into the system. Upon detailed scrutiny, it was discovered that 103 of these vehicles had been fraudulently uploaded using fake user identities. However, despite these reforms, an inquiry revealed that 103 vehicles had been fraudulently uploaded into the system using fake user identities. Of these, 43 vehicles were registered by MRAs, granting them an appearance of legal clearance. The investigation uncovered a wider criminal racket involving officials from MRAs and car dealers. On July 9, 2025, FBR suspended a Deputy Collector and an Assistant Collector whose credentials were misused in the scam. Recognizing the gravity of the issue, FBR requested the formation of a Joint Investigation Team (JIT) comprising senior officers from the FIA, Customs, and Intelligence Agencies. The JIT was tasked with conducting a thorough probe into the manipulation of the Customs digital system. Following FBR’s formal complaint to the FIA on July 10, 2025, the JIT began its investigation. On August 28, 2025, the FIA lodged an FIR against the identified officers involved in the fraudulent legalization of smuggled vehicles. Today, these individuals have been formally arrested by the FIA. Additionally, Customs Enforcement has filed seven FIRs and arrested 13 individuals connected to the scam. The FBR emphasized that this action sends a strong message that criminal elements within the organization will be identified, exposed, and held accountable. “We remain fully committed to upholding the integrity of public service at all levels and at all costs,” the FBR stated.