Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been arrested in an alleged tax evasion case involving approximately ₹840 Crores. The Telangana High Court has dismissed his writ petition seeking bail, which claimed his arrest was unlawful.
Gupta has been in judicial custody since late February 2026, facing accusations of masterminding transactions with shell entities. The investigation, conducted by the Directorate General of GST Intelligence, suggests that Gupta was involved in an organized syndicate that routed funds linked to illegal online gaming platforms.
Fino Payments Bank has appointed Ketan Merchant as interim CEO for a maximum of four months following Gupta’s arrest. Despite the turmoil, the bank’s operations remain stable and uninterrupted, with the institution continuing to add approximately 10,000 CASA accounts daily.
Since Gupta’s arrest, Fino Payments Bank’s shares have experienced a significant decline, dropping nearly 28%. The share price fell to a 52-week low of ₹135.2, closing at ₹139.50 after trading on the day of Gupta’s arrest.
In his plea, Gupta argued that his arrest was “arbitrary, illegal, highhanded and violative of Articles 14, 19, 21 and 22 of the Constitution of India.” However, the court acknowledged the order dismissing his petition.
Fino Payments Bank has stated, “The Bank shall continue to engage constructively with regulators and stakeholders and shall make appropriate disclosures in accordance with applicable laws and regulatory requirements.” Merchant added that the bank and Gupta have no connection to the actions of the programme managers involved in the case.
The ongoing investigation is expected to reveal further details about the alleged tax evasion, which is estimated to involve around ₹2,800 Crores based on the transactions identified.
Details remain unconfirmed regarding the full extent of the allegations against Gupta and the impact on Fino Payments Bank’s future operations.
