Customs authorities in Pakistan have arrested a customs employee, an auction bidder and an alleged facilitator over a fraud involving goods worth Rs16.5 million at a customs auction in Karachi.
The alleged fraud took place in February 2026, when the suspects reportedly used forged documents to remove goods from an auction lot worth Rs15 million without depositing the required payment into the government treasury.
The bidder also allegedly avoided paying 10% income tax amounting to Rs1.5 million, taking the total alleged loss to Rs16.5 million.
Customs authorities received intelligence about the suspected fraud on August 28 and launched a preliminary inquiry. The inquiry found that the suspects had allegedly used several fake documents to remove the auctioned goods from the Collectorate.
These documents included a fake Payment Slip ID (PSID), which had no record in the WeBOC customs system, along with a fake delivery order, no-objection certificate and computerised income tax payment receipt.
Officials said a clerk posted in the Collectorate’s Auction Branch prepared the counterfeit documents.
After confirming the findings, customs authorities arrested an Auction Branch official allegedly involved in the fraud, along with the auction bidder and a suspected facilitator.
The clerk who allegedly prepared the fake documents is believed to have organised the fraud. He had been off duty for around two months and is currently absconding. Investigation teams are searching for him.
The three arrested suspects were produced before a court on September 3. The court granted investigators a two-day physical remand, and the suspects are being questioned by the Collectorate’s Investigation and Prosecution Branch.
Officials said the suspects had admitted their involvement and identified the absconding clerk as the person who arranged the preparation of the forged documents.
The investigation is continuing to recover the defrauded amount and determine whether other customs officials, employees or private individuals were involved.