FIA arrests officers in smuggled vehicle legalization scam

September 04, 2025 (MLN): Federal Investigation Agency (FIA) arrested officers accused of fraudulently legalizing smuggled vehicles, following which an FIR was lodged against them.

Customs Enforcement, in parallel, has so far registered seven FIRs and arrested 13 individuals linked to the wider scam.

As part of its transformation drive, the Federal Board of Revenue (FBR) continues to prioritize transparency, accountability, and institutional integrity.

This includes introducing robust internal checks, profiling staff on the basis of integrity, and pursuing both disciplinary and criminal proceedings against those involved in misconduct.

To curb irregularities in the registration of confiscated vehicles, FBR had introduced the “Auction Module” in its WeBOC system in August 2021.

The initiative was aimed at preventing multiple registrations against a single auction document and enabled Motor Registration Authorities (MRAs) to digitally verify details before registering auctioned vehicles reducing manual reliance and safeguarding legitimate buyers.

Despite these reforms, misuse of the module surfaced in July 2025. An inquiry revealed that out of 1,909 vehicles uploaded, 103 were fraudulently entered under fake identities, 43 of which had already been registered with MRAs, giving smuggled vehicles a false appearance of clearance.

Through a digital audit, FBR traced the compromised user IDs involved in the manipulation. On July 9, 2025, one Deputy Collector and one Assistant Collector, whose credentials had been exploited in the scheme, were suspended.

Further investigations pointed to a broader network involving MRA officials and automobile dealers.

Considering the gravity of the matter, FBR sought the formation of a Joint Investigation Team (JIT) on July 9, 2025, comprising FIA, Customs and intelligence officials to probe the digital system’s misuse.

Based on FBR’s complaint dated July 10, 2025, the JIT launched its inquiry, which has now culminated in the arrests announced.

This outcome reinforces FBR’s commitment to rooting out corruption and reflects its determination to ensure strict accountability through decisive action against all those implicated.

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