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Fino Payments Bank CEO Arrested in Major GST Fraud Case

Rishi Gupta, the CEO of Fino Payments Bank, was arrested on February 27, 2026, by the Directorate General of GST Intelligence for alleged involvement in a significant GST fraud case related to online betting applications. The arrest has raised concerns about the bank's operations and its stock market performance, with shares experiencing a notable decline. The bank has stated that it is cooperating with the investigation and maintains that its own GST compliance is not in question. As the case unfolds, the implications for the bank and its stakeholders remain to be seen.
By Narendra Chaudhary Feb 28, 2026, 12:47 IST

Overview of the Arrest


On February 27, 2026, Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, was apprehended. The arrest was executed by the Directorate General of GST Intelligence (DGGI), Hyderabad unit, in connection with a significant case involving GST evasion linked to online betting applications.

Key Details of the Arrest


  • Date and Location: Gupta was arrested around 3:55 AM in Mumbai on February 27, 2026.


  • Charges: He faces charges under sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017, which pertain to tax evasion, unaccounted supply, and fraudulent invoicing.


  • Reason for Arrest: The investigation suggests that funds related to online betting applications were routed through the bank via certain business partners.



    • Allegations involve the routing of funds linked to betting transactions amounting to approximately ₹3,000 crore.


    • The total transactions in the network are estimated to reach ₹13,000 crore.


    • Companies involved include Wegofin Digital Solutions Pvt Ltd and PSRao Digital Solutions Pvt Ltd, with some directors, such as Vennapusa Rajasekhar Reddy and YS Prabhu Kumar, also implicated.




  • Health Status: Following his arrest, Gupta was taken to JJ Hospital due to complaints of chest pain. He will be presented in court after receiving medical clearance.



Official Response from the Bank


  • The bank informed the stock exchanges (NSE/BSE) through a regulatory filing.


  • It clarified that the case does not involve the bank's own GST compliance but is related solely to certain business partners.


  • There is no direct involvement of the bank or its officials in the matter.


  • The bank adheres to strong corporate governance and compliance standards and is fully cooperating with the investigation. The RBI has also been notified.


  • A special board meeting was convened post-arrest, appointing CFO Ketan Merchant as the interim head to manage daily operations.


  • The bank stated that its operations remain unaffected for now, and any future impact will be communicated.



Impact on the Stock Market


  • Fino Payments Bank is listed on both NSE and BSE.


  • Prior to the arrest news, the stock experienced a decline of over 7% on February 27, 2026 (dropping approximately 7.73%).


  • On Monday, March 3, 2026, the stock is expected to face volatility and negative pressure, as such news creates uncertainty among investors.


  • The bank has indicated that there is currently no material impact, but investors should remain cautious.



Ongoing Investigation

This case is still in the early stages of investigation. The developments will depend on the actions of the DGGI and the court. The bank is attempting to distance itself from the situation while continuing its operations.