Mumbai: Fino Payments Bank has announced that its Managing Director and Chief Executive Officer, Rishi Gupta, was arrested on February 27 under provisions of the CGST Act, 2017 and the SGST Act, 2017, according to a stock exchange disclosure made on Friday.
The lender clarified that the action stems from an ongoing GST investigation linked to certain business partners and does not relate to the bank’s own tax compliance. It emphasised that none of its employees are implicated and that the institution is extending full cooperation to authorities.
In the wake of the development, the board convened a special meeting and appointed Chief Financial Officer Ketan Merchant as Head of the Organisation to supervise day-to-day operations during Gupta’s absence. The arrangement will remain in place until further board direction or until Gupta resumes his role, whichever is earlier.
Merchant reiterated the bank’s stance in a statement, asserting that the organisation maintains strong governance and compliance frameworks as a regulated entity. He stressed that both the bank and its CEO have no involvement in the alleged actions of the partners under investigation and expressed confidence in the judicial process.
The company also sought to reassure customers, investors and other stakeholders that services and operations continue without disruption and that there is currently no impact on its financial position. Any future material developments, it added, will be disclosed to stock exchanges in line with regulatory requirements.
