Proton Pakistan Accused of Rs890 Million Mega Fraud on Car Buyers, Pakistan’s automobile market has been shaken by serious fraud allegations against Proton Pakistan, where the company is accused of withholding nearly Rs890 million collected from customers who booked vehicles but never received delivery.
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Proton, a Malaysian automobile brand operated in Pakistan by the Al-Haj Group, sells popular models including Saga, X50, and X70, competing directly with Kia, MG, and Hyundai. However, instead of strengthening competition, the company is now facing accusations of betraying customer trust on a massive scale.
Cars Booked, Money Taken — Vehicles Never Delivered
According to sources, Proton allegedly collected advance payments worth Rs890 million from customers but failed to deliver cars for extended periods, leaving thousands of buyers stranded. Following government intervention led by SAPM Hamayun Akhtar Khan and the newly appointed Engineering Development Board (EDB) CEO, the company returned Rs300 million, but hundreds of millions are still reportedly unpaid.
Regulatory Failure Under Spotlight
The EDB — the official regulator meant to protect consumer interests — is under criticism for its past inaction, which allegedly allowed automakers to exploit loopholes. Insiders claim previous management had close ties with car manufacturers, enabling prolonged delays without penalties.
Under Pakistan’s Auto Policy, automakers are legally bound to pay interest if delivery exceeds six months, yet multiple companies, including Proton, are accused of ignoring this obligation entirely.
Industry-Wide Allegations Emerging
Sources further reveal that Proton may not be the only player involved, with other car manufacturers allegedly holding customer funds for up to five years without refunds or vehicle delivery. Consumers, meanwhile, have been described as a “shuttlecock between companies and regulators.”
Government Pressure Mounting
The new EDB leadership, described as foreign-qualified and corruption-free, has reportedly begun a crackdown to recover remaining funds and restore accountability. The government is now pressuring Proton to return the full amount and comply with consumer protection laws.
Ironically, the new auto policy, introduced to break the dominance of Japanese giants like Toyota, Honda, and Suzuki, appears to have opened doors for new entrants accused of even worse practices, raising fresh concerns over oversight and enforcement.
