Fino Payments Bank CEO Rishi Gupta Faces Arrest Under GST Law
Synopsis
In a shocking turn of events, Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, was arrested under GST provisions. This development has prompted a special Board Meeting to appoint an interim leader. Could this investigation impact the bank's operations? Read on for the latest updates.
Key Takeaways
Rishi Gupta arrested under CGST and SGST provisions.
Ketan Merchant appointed as interim head.
The investigation involves business partners, not the bank's GST compliance.
The bank is cooperating with authorities.
No current impact on bank operations has been reported.
New Delhi, Feb 27 (NationPress) - On Friday, Fino Payments Bank announced via an exchange filing that its Managing Director and Chief Executive Officer (CEO), Rishi Gupta, has been detained under the provisions of the CGST and SGST Acts.
The exchange disclosure stated that the arrest of Mr. Rishi Gupta, MD and CEO of Fino Payments Bank Limited, occurred under sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017, respectively, on February 27, 2026.
Gupta was taken into custody earlier today.
This action is being conducted in accordance with the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) regulations.
A special Board Meeting was held, during which Ketan Merchant, the Chief Financial Officer of the Bank, was designated as the Head of the Organization to manage daily operations in Rishi Gupta's absence, until the Board makes a different decision or until Gupta returns, whichever comes first, as stated in the filing.
The bank confirmed that the investigation pertains to specific business partners and is not related to the bank's GST compliance.
“The investigation focuses on the business partner(s) of the Bank and does not involve the Bank's GST compliance. The Bank is collaborating with the authorities to furnish all required information,” the statement added.
“Currently, there is no effect on the Bank. Should there be any future impact, the appropriate disclosures will be made to the stock exchanges,” the Bank mentioned, noting that “this information has been communicated to the RBI.”
The situation remains under scrutiny, and any further significant developments will be announced promptly, the Bank concluded.
Point of View
It is crucial to report on the arrest of Rishi Gupta without bias. This incident raises significant questions regarding governance and compliance within financial institutions. The ongoing investigation underscores the importance of transparency and accountability in banking operations.
NationPress
11 May 2026
Frequently Asked Questions
What were the reasons for Rishi Gupta's arrest?
Rishi Gupta was arrested under the provisions of the CGST and SGST Acts due to an investigation involving certain business partners of the bank.
Will this incident affect Fino Payments Bank's operations?
Currently, the bank has stated that there is no impact on its operations, but it will disclose any future developments to the stock exchanges.
Who will manage the bank in Gupta's absence?
Ketan Merchant, the Chief Financial Officer, has been appointed to oversee the bank's day-to-day operations during Gupta's absence.
Is the bank cooperating with the investigation?
Yes, the bank has confirmed that it is cooperating with authorities and providing all necessary information.
What does this mean for the bank's compliance with GST?
The investigation is focused on business partners and does not relate to the bank's GST compliance, according to the bank's statement.
