Rishi Gupta, the CEO of Fino Payments Bank, has been arrested on allegations of tax evasion. The arrest was made under specific tax laws, prompting the bank to appoint an interim head to manage daily operations.
The arrest was carried out under section 132(1)(a) of the Central Goods and Services Tax (CGST) Act and section 132(1)(i) of the state GST Act. The former deals with tax evasion related to invoicing issues, while the latter concerns incorrect Input Tax Credit (ITC) usage or refunds exceeding a certain limit.
Following Gupta’s arrest, Fino Payments Bank’s board took swift action by naming Ketan Mehta, the CFO, as the temporary leader to ensure the continuity of business operations.
The bank clarified that the investigation is linked to its business partners rather than the bank’s own GST compliance. Fino Payments Bank affirmed its cooperation with the authorities and its commitment to providing all necessary information.
Despite these developments, the bank assured stakeholders that it is actively working to address the situation and emphasized that the arrest has no immediate impact on the bank’s operations.
Source: Inc42 Media