The President of Pakistan has endorsed the recommendations of FTO for cancellation of underhand auction of a vehicle stating that “The Director General of Intelligence and Investigation Customs FBR Islamabad should investigate the underhand auction and initiate necessary disciplinary proceedings under E&D Rules, 2020 against officers and staff found responsible for this malafide act”. Brief facts of the case are that in the first round of an open car auction which was being conducted in Quetta by the Directorate of Intelligence and Investigation (Customs), Quetta on 21.07.2022 various lots of vehicles were put for auction including Lot No.55/2022, a Toyota Premio Car, 1800 cc, Model 2007.
Qaim Khan appeared in the auction and offered bid of Rs .2,525,000/- which was 96% of the reserve price. He deposited earnest money of Rs.500,000 with Customs, but his bid was rejected.
The second round of auction for the same vehicle was conducted on 22.08.2022. Arshad Khan offered higher bid of Rs.2,650,000/- which was accepted by the Additional Director, I&I, Quetta.
Being the successful bidder in open auction, he purchased the vehicle in accordance with the rules, paid full amount including income tax and still awaited delivery of the vehicle. However, after the second stage of the instant case, “pseudo complaint” filed by Zahoor Ahmed c/o Asad Baloch, was the tip of ice berg.
He stated that Directorate of Intelligence and Investigation-Customs, held auction on 21.07.2022 in which his bid was approved. This was more than 100% of the reserve price.
At that time, he raised the objection that FSL report of the lot is missing. Meanwhile, the FSL report was shown to him during the auction.
Additional Director, Directorate of Intelligence and Investigation –Customs started creating hurdles with regard to final approval of the bid and demanded bribe for approval which was given to him through Qaim Khan.
He also met the Director who showed his helplessness saying that he had no concern with the auction. The complaint was referred to Secretary, Revenue Division.
In response, the Additional Director stated that the complainant was not aggrieved person under section 9(1) of the FTO Ordinance. The complainant has also not taken oath under section 10(1) of the FTO Ordinance, Moreover, it has been signed by Asad Baloch without showing his proper identification and as such it is pseudonymous and liable to be set-aside. He also stated that Directorate conducted auction on 21.07.2022 and uploaded the auction schedule on FBR website. Several lots of vehicles were put to auction including the afore mentioned Lot no.55/2022. In this auction, Asad Baloch along with Mr. Qaim Khan and Mr. Mirwais Barech appeared and insisted that they want to purchase the vehicle and they would not allow anyone else to purchase it.
The Additional Director denied all the allegations of purchasing vehicle by him for any of his family member.
FTO observed that statements of the pseudo complainant and comments of the Additional Director do not carry weight.
It further transpired that the whole process of auction of Lot No.55/2022 pertaining to vehicle Toyota Premio Car of Model 2007 is “fraught with deceit, deception and gross misuse of authority. The way the said vehicle has been auctioned in a clandestine manner shows gross display of a planned fraudulent malpractice.
There is abundant evidence that the officers and the staff of directorate have flagrantly and openly breached the relevant rules and regulations pertaining to open auction, which is tantamount maladministration under section 2(3)(i)(ii) of the FTO Ordinance, 2000”.
Considering Representation before the Honorable President of Pakistan filed by Mr. Arshad khan, being the highest bidder in second open auction having purchased vehicle in accordance with rules and still awaiting delivery of the vehicle. Hence, delivery of the purchased item is his right in law observed the President in his decision dated 02.10.2023.
FTO in his Recommendations, had also directed FBR to direct the Director General, Directorate General of Intelligence and Investigation-Customs, FBR Islamabad to investigate this underhand auction and initiate necessary disciplinary proceedings under E&D Rules, 2020 against officers and staff found responsible; the Director, Directorate of Intelligence and Investigation Customs, Quetta to cancel this fake auction proceedings and conduct afresh an open re-auction of the vehicle, as per law.
The Honorable President concluded as “needs modification to the extent to return and paid amount to the complainant by the department”.
The Hon’ble President of Pakistan, has further been pleased to desire that “these are serious allegations and when the bidder gave the highest bid, even then the purchased item was not delivered to him smacks of serious corruption and miscarriage of law”.
The Recommendations by the Federal Tax Ombudsman against corruption and malpractices by the government officials, now endorsed by the Honorable President of Pakistan flash clear message of “Zero tolerance against corruption by the government functionaries”.
