Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been arrested in connection with a staggering ₹840 Crore GST evasion case. The Telangana High Court has dismissed his writ petition seeking bail, leaving Gupta in judicial custody since late February 2026.
Gupta’s arrest stems from accusations of orchestrating transactions with shell entities, allegedly linked to an organized syndicate involved in routing funds for illegal online gaming platforms. The Directorate General of GST Intelligence is leading the investigation, which has raised serious concerns about corporate governance within the bank.
Fino Payments Bank has appointed Ketan Merchant as interim CEO for a maximum of four months following Gupta’s arrest. Despite this upheaval, the bank’s operations remain stable and uninterrupted, with a reported addition of 10,000 CASA accounts daily.
However, the bank’s shares have taken a hit, declining nearly 28% since Gupta’s arrest, closing at ₹139.50, down from a 52-week high of ₹135.2. The market’s reaction reflects the uncertainty surrounding Gupta’s legal troubles and their potential impact on the bank’s future.
In his plea, Gupta sought to declare his arrest as unlawful, asserting that it violated several articles of the Constitution of India. “Declare the arrest of the Petitioner… to be arbitrary, illegal, highhanded and violative of Articles 14, 19, 21 and 22 of the Constitution of India,” he stated.
Fino Payments Bank has publicly acknowledged the High Court’s dismissal of Gupta’s writ petition, emphasizing its commitment to engaging constructively with regulators and stakeholders. “The Bank shall continue to engage constructively with regulators and stakeholders and shall make appropriate disclosures in accordance with applicable laws and regulatory requirements,” the bank stated.
Ketan Merchant, the interim CEO, has distanced the bank from the allegations, asserting, “The Bank and its MD & CEO Rishi Gupta have nothing to do with the actions of the programme managers.”
As the investigation unfolds, observers are closely watching how Fino Payments Bank navigates this crisis and what further developments may arise. Details remain unconfirmed.
