Fake PSID, delivery order, NOC and tax receipt allegedly used to remove auction goods without payment
KARACHI, September 4: The Collectorate of Customs Enforcement Karachi has arrested one of its staff members, an auction bidder and a facilitator in connection with an alleged Rs16.5 million fraud involving the removal of auctioned goods through fake documents.
According to the Collectorate, the fraud took place in February 2026 and involved goods from a Customs auction lot valued at Rs15 million. The bidder allegedly removed the goods without depositing the bid amount into the government treasury and also evaded 10% income tax worth Rs1.5 million, bringing the total alleged default to Rs16.5 million.
The case came to light after credible intelligence was received on August 28, 2026, regarding the fraudulent removal of the auctioned goods.
A fact-finding inquiry and preliminary investigation were subsequently ordered. The investigation found that a complete set of allegedly fraudulent documents had been prepared to facilitate the removal of the goods.
These included a fake Payment Slip Identification Number (PSID) that had no corresponding record in the WeBOC system, along with a fake Delivery Order, No Objection Certificate (NOC) and Computerized Payment Receipt (CPR) for income tax.
The Customs Collectorate said the documents had allegedly been prepared by a clerk posted in its Auction Branch.
Three Arrested, Alleged Mastermind Absconding
Following confirmation of the findings, an Auction Branch official allegedly involved in the scheme was arrested along with the auction bidder and a go-between or facilitator.
The clerk accused of preparing the fake documents has been identified as the alleged mastermind of the fraud. He had reportedly been off duty for several months and is currently absconding.
Teams have been deployed to locate and arrest him, according to the Collectorate.
The three arrested suspects allegedly confessed to their involvement during interrogation and identified the absconding clerk as the person who orchestrated the preparation of the fraudulent documents.
They were produced before a court on September 3, which granted a two-day physical remand. The suspects are currently under interrogation and remand by the Investigation and Prosecution (I&P) Branch of the Collectorate.
Investigation Underway
Authorities are continuing their investigation to recover the allegedly defrauded amount and determine whether any other Customs officials, staff members or private individuals were involved.
The Federal Board of Revenue (FBR) reiterated its zero-tolerance policy towards corruption and malpractice within its ranks.
The FBR said strict action, including departmental and criminal proceedings, would be taken against anyone found responsible, regardless of rank or position.