FIA arrests FBR officials in smuggled vehicle legalisation case

The Federal Investigation Agency (FIA) has arrested several Federal Board of Revenue (FBR) officers for allegedly legalising smuggled vehicles, with the FBR calling it part of a “wider criminal racket” under investigation.

According to the FBR, reports emerged in July 2025 regarding misuse of its 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 [Motor Registration Authorities] 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 was 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.

“Following FBR’s formal complaint to FIA dated 10th July, 2025, the JIT commenced its investigation. As a result, on 28th August, 2025, the FIA lodged an FIR against already identified officers, after being found involved in fraudulently legalising smuggled vehicles.

“Today, these individuals have been formally arrested by FIA. It is also pertinent to mention that Customs Enforcement has so far lodged seven FIRs and arrested 13 individuals in connection with this broader scam,” the FBR statement read.

The FBR in August 2021 introduced the ‘Auction Module’ in its WeBOC system.

The 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 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,” the FBR said.