FBR initiates action against officers over smuggled vehicle regularization

ISLAMABAD: The Federal Board of Revenue (FBR) has initiated strict proceedings against officers found involved in the fraudulent regularization of smuggled vehicles, reaffirming its policy of zero tolerance towards corruption.

According to an official press release issued Wednesday, the crackdown is part of FBR’s ongoing transformation agenda, which prioritizes transparency, accountability, and institutional integrity.

The Board stressed that profiling of its workforce, coupled with disciplinary and criminal action, remains central to these reforms.

The development follows revelations of misuse of FBR’s Auction Module — introduced in August 2021 under the WeBOC system to curb fraudulent vehicle registrations and strengthen institutional controls.

The system was designed to allow Motor Registration Authorities (MRAs) to verify auctioned vehicle details online, reducing dependence on manual checks.

However, in July 2025, reports emerged that the module had been exploited. A subsequent inquiry revealed that out of 1,909 vehicles uploaded in the system, 103 were fraudulently registered using fake user IDs, with 43 of them already cleared by MRAs.

Digital audits and internal investigations traced the fraud to compromised user IDs belonging to a Deputy Collector and an Assistant Collector, both of whom were suspended on July 9, 2025. Investigators uncovered links between officials of MRAs, car dealers, and other criminal elements.

Recognizing the scale of the scam, FBR sought the formation of a Joint Investigation Team (JIT) comprising FIA, Customs, and intelligence agencies.

The FIA lodged an FIR on August 28, 2025, against identified officers, who have now been formally arrested.

So far, seven FIRs have been filed and 13 individuals arrested in connection with the broader racket. Customs Enforcement continues to pursue additional suspects.

FBR underscored that the arrests send a “clear and firm signal” that corrupt practices will not be tolerated. “Criminal elements within the organization will be identified, exposed, and prosecuted in accordance with the law,” the statement concluded.