Fino Payments Bank CEO arrested for tax compliance reasons

Fino Payments Bank CEO Rishi Gupta has been arrested under provisions of the GST Act, the bank has said in a regulatory filing.

The Board of the bank held a special meeting to appoint Ketan Merchant, Chief Financial Officer, as Head of the Organisation to carry on day-to-day operations in the absence of Gupta, until the issue is resolved by the Board or till Gupta resumes office, whichever is earlier.

The bank has said that the investigation is relating to partner(s) of the bank and not relating to the GST compliance of the bank. Officials of the bank are cooperating with the investigation, they said.

Update: On 28 February the bank said: “The issue is with regards to a GST investigation pertaining to program managers who have relationship with other banks including Fino Payments Banks Limited. The Bank and its MD & CEO - Mr. Rishi Gupta have nothing to do with the actions of the programme managers.”