Fino Payments Bank MD and CEO Rishi Gupta arrested under GST Act; CFO Ketan Merchant assumes charge | Company Business News

Fino Payments Bank Ltd said on Friday, 27 February, that its Managing Director and CEO, Rishi Gupta, has been arrested under the CGST and SGST Act. The information was disclosed in an exchange filing.

The bank said the investigation relates to business partners of the bank and not to its GST compliance. It also clarified that none of the bank’s officials is involved with the case and that officials are cooperating with the investigation.

According to the details given by the bank, the arrest has been made only in respect of Rishi Gupta.

“Presently, there is no impact on the bank. In case of any impact in the future, appropriate disclosure will be made to the stock exchanges,” it said.

What is the case?

Rishi Gupta has been arrested under the provisions of Section 132(1)(a) of the Central Goods and Services Tax (CGST) Act, 2017, and 132(1)(i) of the State Goods and Services Tax (SGST) Act, 2017.

Section 132(1)(a) of the CGST Act 2017 pertains to cases where a person supplies any goods or services or both without issuing an invoice in violation of the provisions of the Act or the rules framed under it, with the intent to evade tax, according to CBIC Tax Information.

CFO Ketan Merchant takes charge

Further to this, a special board meeting was convened on Friday, during which Ketan Merchant, Chief Financial Officer, was appointed as Head of the Organisation, Fino Payments said in a statement.

Merchant has been given the responsibility to oversee the bank’s day-to-day operations in the absence of Rishi Gupta, until otherwise resolved by the board or until Gupta resumes office, whichever is earlier.

Shares of Fino Payments Bank closed at ₹192.45 on the Bombay Stock Exchange, down by ₹15.60, or 7.50% for the day.

Fino Payments Bank is a Navi Mumbai-based bank established in 2017, focusing on digital payments, CASA accounts, and financial inclusion. It is a subsidiary of Fino Paytech Limited. It operates on an asset-light, merchant-driven model with a strong PAN-India presence.