Legalising smuggled vehicles: Seven FIRs lodged, 13 suspects arrested

ISLAMABAD: On directives of the Joint Investigation Committee (JIT), the Federal Board of Revenue (FBR) and the Federal Investigation Agency (FIA) on Wednesday filed seven FIRs and arrested 13 individuals including car dealers, involved in the legalisation of 103 smuggled vehicles, and suspended one Deputy Collector and one Assistant Collector of Customs.

In pursuit of its ongoing transformation agenda, the Federal Board of Revenue (FBR) continues to prioritise transparency, accountability, and institutional integrity. A key pillar of this reform effort is the establishment of internal checks and a policy of zero tolerance towards corrupt practices. This includes profiling of FBR’s workforce based on integrity and initiating disciplinary and criminal action where needed.

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, Motor Registration Authorities (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.

FIA arrests FBR officials in smuggled vehicle legalisation case

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. 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, FBR identified the user IDs through which the fraud had been committed. As a result, on 9th July, 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 9th July, 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.

Copyright Business Recorder, 2025