Mr. Ketan Merchant has been appointed as Interim CEO of Fino Payments Bank for a period of three months w.e.f. February 27, 2026 or till Mr. Rishi Gupta resumes office. Rishi Gupta, has been arrested under the CGST Act, 2017 and the SGST Act, 2017.
The bank said the investigation relates to business partners of the bank and not to its GST compliance. It stated that none of the bank’s officials is involved and that officials are cooperating with the investigation.
The arrest happened after an investigation by the Directorate General of GST Intelligence (DGGI), Hyderabad unit. The agency is looking into suspected GST evasion connected to online betting apps. Investigators believe that about Rs. 3,000 crore from betting app transactions may have passed through banking channels. The total betting network being investigated may involve around Rs 13,000 crore in transactions.
Officials suspect that money from betting apps was moved through several companies, including digital service firms. They are also examining claims that dummy merchants were created to provide gaming services without proper invoices, which may have led to GST evasion of more than Rs. 30 crore.
Fino Payments Bank Former MD&CEO Rishi Gupta moves High Court
The High Court of Telangana heard a case on Tuesday about the arrest of Rishi Gupta, the Managing Director and CEO of Fino Payments Bank. He was arrested in connection with a suspected GST evasion case linked to online betting apps. The case was heard on March 3, 2026, by a bench of Justice A. Krishna Reddy and Justice G.M.M. at the High Court of the State of Telangana.
Senior lawyer Abhishek Manu Singhvi appeared for Rishi Gupta and the other petitioners through video conference. He argued that Gupta’s arrest and detention by the Central Goods and Services Tax (CGST) authorities were illegal.
On behalf of the government, Additional Solicitor General B. Narasimha Sharma represented the Union government, while N. Venkataraman appeared for the Central Board of Indirect Taxes and Customs.
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