Lahore — The Federal Board of Revenue (FBR) has launched disciplinary and criminal proceedings against several of its officers after uncovering a scheme to legalize smuggled vehicles through the misuse of its digital registration system.
Digital Safeguards Meant to Stop Fraud
Back in August 2021, the FBR rolled out an “Auction Module” in its WeBOC system. The goal was to bring transparency to the registration of cars seized in smuggling cases and later auctioned off by Customs.
Under this system, Motor Registration Authorities (MRAs) could cross-check auction details online rather than relying on paperwork, making it harder to register a vehicle using fake documents or duplicate records.
The reform was billed as a major step toward digitizing Customs operations and tightening institutional controls.
System Manipulated From Within
Despite these safeguards, a digital audit in July 2025 revealed the module had been compromised. Out of 1,909 vehicles uploaded into the system, 103 were fake entries created using stolen or misused officer credentials.
Of those, 43 cars had already been registered by MRAs — effectively giving smuggled vehicles a government-backed cover of legitimacy.
Investigators traced the activity back to the user IDs of a Deputy Collector and an Assistant Collector. Both were suspended on July 9, 2025.
Wider Network Exposed
What initially looked like a case of individual negligence turned out to be part of a larger, coordinated scam. According to investigators, officers inside the FBR colluded with outside car dealers and some MRA staff to slip illegal vehicles into the system under the guise of legitimate auctions.
The findings prompted the FBR to request the formation of a Joint Investigation Team (JIT) on July 9, bringing in the FIA, Customs, and intelligence officials. The following day, the FBR filed a formal complaint with the FIA.
By late August, the FIA had registered a case, lodged an FIR, and made its first arrests.
Arrests and Cases Filed
So far, Customs Enforcement has registered seven FIRs linked to the scheme. Thirteen individuals have been taken into custody, including FBR officials accused of using their access to facilitate the digital fraud.
The scandal underscores how even digitized safeguards can be undermined if internal security lapses go unchecked. For the FBR, the episode is both a setback to its reform agenda and a test of whether it can clean up corruption within its own ranks.
