Fino Payments Bank managing director and chief executive officer has been arrested in accordance with the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Act, 2017, the lender informed the exchanges on Friday.
Gupta was detained in accordance with Section 132 (1) (a) and 13 (1) (i) of the CGST and SGST Act, as per regulatory documents. After the incident, the bank conducted a special board meeting and named Ketan Merchant as the Chief Financial Officer to lead the company and manage daily operations while Gupta was away.
Why was Rishi Gupta arrested?
As per Fortune India, the Directorate General of GST Intelligence (DGGI), Hyderabad unit, has linked the probe to an alleged online betting-related GST evasion case. Officials cited in reports suspect that nearly Rs 3,000 crore tied to betting app transactions may have been routed through banking channels, while the wider network under scrutiny is estimated at about Rs 13,000 crore in transactions. The report added that investigators are examining allegations that betting-app funds moved through a network of entities, including certain digital solution firms, and that dummy merchants were allegedly onboarded to enable gaming services without invoices, leading to suspected GST evasion of over Rs 30 crore.
Fino Payments Bank statement
The bank made it clear that the enquiry is about its commercial partner or partners, not its own GST compliance. Additionally, it stated that the bank was assisting authorities and that none of its executives was involved in the situation.
“The bank is working with the authorities to give them all the information they need.” There is currently no effect on the bank, the lender stated in its statement. It further added that the exchanges will be informed of any future developments.
Additionally, the payment bank notified the Reserve Bank of India that the required disclosures had been made. Until the board agrees otherwise or Gupta returns to work, Merchant will be in charge of operations. The lender also stated that it is resolving the issue by taking the necessary actions.
In 2025, the Reserve Bank of India gave the company in principle clearance to become a small-finance bank. The chairman of the legal company SNG & Partners, Rajesh Narain Gupta, stated that the arrest had caused a “shock wave among bankers and professionals” and demanded that the strict GST arrest laws be reviewed as per a report by PTI.
Who is Rishi Gupta?
Rishi Gupta has been with Fino Payment Bank for almost 20 years, and since 2015, he has held the positions of managing director and CEO.
He was also a member of the founding team and head previously worked as the Executive Director and Chief Operating Officer from 2013 to 2015 and the Director and Chief Financial Officer from 2006 to 2013. Gupta has also worked with Maruti Suzuki, ICICI Bank and the International Finance Corporation before joining Fino, as per his LinkedIn profile.
Throughout his career, Gupta, a chartered accountant and cost accountant by training, has worked in company development, finance, and strategic alliances