Karachi customs officials arrested in Rs16.5m auction fraud

Customs authorities in Karachi, Pakistan, have arrested three individuals in connection with a Rs16.5 million auction fraud. The suspects, including a departmental employee, an auction bidder, and an alleged facilitator, were apprehended following an investigation into the illegal removal of goods from a February 2026 auction.

Investigators determined that goods from an auction lot valued at Rs15 million were removed without the winning bidder depositing the required amount into the government treasury. The scheme also involved the evasion of Rs1.5 million in income tax, bringing the total financial loss to Rs16.5 million. The fraud was facilitated through a series of forged documents, including a fake Payment Slip Identification Number (PSID) that lacked a record in the WeBOC customs system, as well as counterfeit delivery orders, no-objection certificates, and computerized payment receipts.

A clerk from the Collectorate’s Auction Branch has been identified as the alleged mastermind behind the preparation of the counterfeit documents. This individual has been absent from duty for several months and is currently absconding. The three arrested suspects were presented before a court on September 3, where investigators were granted a two-day physical remand to continue questioning.