Fino Payments Bank's Managing Director and CEO Rishi Gupta Arrested Under GST Act

Fino Payments Bank Ltd Update

Summary

On February 27, Fino Payments Bank Ltd informed the exchange of the arrest of its Managing Director and CEO, Rishi Gupta, under the CGST and SGST Act. The investigation relates to business partners of the bank, not its GST compliance. Rishi Gupta is the sole individual involved in the case, and the bank's officials are cooperating with the investigation.

Investigation Details

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The arrest was made under Section 132(1)(a) of the CGST Act 2017 and Section 132(1)(i) of the SGST Act 2017. The provisions pertain to cases where a person supplies goods or services without issuing an invoice with the intent to evade tax.

Management Update

A special board meeting was convened on February 27, during which Ketan Merchant, Chief Financial Officer, was appointed as Head of the Organisation, overseeing the bank's day-to-day operations in the absence of Rishi Gupta.

Stock Performance

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

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

Company Overview

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