KARACHI: The Collectorate of Customs Enforcement, Karachi has arrested three individuals, including a departmental employee, an auction bidder and an alleged facilitator, for their alleged involvement in a Rs16.5 million fraud involving the illegal removal of auctioned goods through forged documents.
The case came to light after credible intelligence was received on August 28, 2026, concerning the removal of auctioned goods from the Collectorate in February without depositing the required bid amount into the government treasury.
Following the information, authorities initiated a fact-finding inquiry and preliminary investigation. The inquiry established that goods from an auction lot valued at Rs15 million had been removed by the successful bidder without payment of the bid amount.
Fake Documents Used to Remove Auctioned Goods
Investigators found that the fraud also involved the evasion of 10% income tax amounting to Rs1.5 million. As a result, the total financial loss or default linked to the transaction reached Rs16.5 million.
The alleged scheme was carried out through a set of forged documents. These included a fake Payment Slip Identification Number (PSID), which had no corresponding record in the WeBOC system, along with a counterfeit Delivery Order, No Objection Certificate (NOC) and Computerized Payment Receipt (CPR) for income tax.
According to the preliminary investigation, the fraudulent documents were prepared by a clerk posted in the Collectorate’s Auction Branch.
Clerk Identified as Alleged Mastermind
After confirming the findings, Customs authorities arrested the implicated Auction Branch official, the bidder involved in the auction lot and a suspected intermediary who allegedly facilitated the transaction.
The clerk accused of preparing the forged documents had reportedly been absent from duty for several months. He has been identified as the alleged mastermind behind the scheme and is currently absconding. Teams have been deployed to locate and arrest him.
Suspects Remanded for Further Investigation
During interrogation, the three arrested suspects reportedly confessed to their involvement and identified the absconding clerk as the person who orchestrated the preparation of the fraudulent documents.
The suspects were presented before the court on September 3, 2026, which granted their two-day physical remand. They are currently being interrogated by the Investigation and Prosecution (I&P) Branch of the Collectorate.
Further investigation is underway to recover the defrauded amount and determine whether other Customs officials, employees or private individuals were involved.
The Federal Board of Revenue has reiterated its zero-tolerance policy against corruption and malpractice, stating that departmental and criminal proceedings will be initiated against anyone found responsible, regardless of rank or position.
