ISLAMABAD: The Federal Board of Revenue (FBR) has unearthed a large-scale scam involving smuggled vehicles, leading to multiple arrests and criminal cases.
According to officials, the fraud was linked to the “Auction Module” introduced in 2021 under the WeBOC system. This system was designed to stop the misuse of auctioned vehicles by enabling Motor Registration Authorities (MRAs) to verify auctioned vehicle details online. It aimed to reduce manual verification and strengthen checks against illegal practices.
Despite these measures, investigations revealed that 103 vehicles were fraudulently uploaded using fake user identities. Out of these, 43 smuggled vehicles had already been registered by MRAs, giving them an appearance of legal clearance.
FBR acted swiftly after receiving reports in July 2025 about the misuse of the system. A detailed audit identified the user IDs used for the fraud. The credentials of one Deputy Collector and one Assistant Collector were found compromised, leading to their suspension.
The investigation further exposed collusion between Customs officials, MRAs, and car dealers. Recognising the seriousness of the scam, FBR requested the formation of a Joint Investigation Team (JIT) with officers from the FIA, Customs, and intelligence agencies.
Following FBR’s complaint to the FIA on July 10, 2025, the JIT began its probe. On August 28, 2025, the FIA lodged an FIR against several individuals involved in the fraudulent regularisation of smuggled vehicles.
As of now, Customs Enforcement has registered seven FIRs in connection with the scandal. A total of 13 individuals have been arrested by the FIA after being found directly linked to the racket.
The case highlights the challenges in curbing vehicle smuggling despite digital reforms. FBR has pledged further action to ensure the integrity of its systems and prevent future misuse.
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