The Federal Board of Revenue (FBR) has admitted corruption within its ranks and taken strict action after uncovering large-scale misuse of its digital Auction Module used for confiscated smuggled vehicles. The scandal, first reported in July 2025, has led to suspensions, arrests, and the creation of a Joint Investigation Team (JIT) to probe the matter.
The Auction Module, launched in August 2021 under the WeBOC system, was introduced to curb fraud by allowing Motor Registration Authorities (MRAs) to verify details of auctioned vehicles online instead of relying on manual checks. The system was meant to close loopholes that previously enabled illegal clearance of smuggled cars.
Despite these safeguards, an inquiry revealed serious manipulation. Of the 1,909 vehicles entered into the module since its inception, at least 103 were fraudulently uploaded using fake user credentials. Shockingly, 43 of these vehicles were successfully registered by MRAs, giving them a false appearance of legality. Investigators believe the scam involved a network of corrupt customs officials, MRAs, and car dealers.
On July 9, 2025, FBR suspended a Deputy Collector and an Assistant Collector whose credentials were misused in the scheme. The next day, FBR formally requested a JIT with members from the FIA, Customs, and intelligence agencies to investigate the manipulation of its digital systems.
The crackdown intensified when, on August 28, 2025, the FIA lodged an FIR and arrested the identified officers accused of facilitating fraudulent clearance of smuggled vehicles. Customs Enforcement also registered seven FIRs and arrested 13 individuals linked to the racket.
In a strong-worded statement, the FBR stressed its commitment to rooting out corruption:
“We remain fully committed to upholding the integrity of public service at all levels and at all costs. Criminal elements within the organization will be identified, exposed, and held accountable.”
The scandal highlights both the vulnerabilities in digital enforcement systems and the government’s determination to restore trust by holding wrongdoers accountable.