Rishi Gupta Arrested Amid Allegations of Tax Evasion

Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been arrested in an alleged tax evasion case involving approximately ₹840 Crores. The Telangana High Court has dismissed Gupta’s writ petition seeking bail, which claimed his arrest was unlawful.

The allegations against Gupta include masterminding transactions with shell entities, with an estimated ₹3,000 Crores routed through these entities. The investigation is part of a broader probe by the Directorate General of GST Intelligence, focusing on an organized syndicate linked to illegal online gaming platforms.

Gupta has been in judicial custody since late February 2026, and his plea sought to declare his arrest as arbitrary and violative of constitutional rights. In a statement, Gupta expressed his intention to challenge the legality of his arrest, asserting that it violated Articles 14, 19, 21, and 22 of the Constitution of India.

Following Gupta’s arrest, Fino Payments Bank appointed Ketan Merchant as interim CEO for a maximum of four months. The bank has stated that its operations remain stable and uninterrupted, despite the ongoing legal issues surrounding its CEO.

Fino Payments Bank, which received in-principle approval from the Reserve Bank of India to transition into a small finance bank in December 2025, has seen its shares decline nearly 28% since Gupta’s arrest. The share price fell to ₹135.2, down from ₹139.50 at the end of trading after the arrest.

The bank has reassured stakeholders, stating, “The Bank shall continue to engage constructively with regulators and stakeholders and shall make appropriate disclosures in accordance with applicable laws and regulatory requirements.” Ketan Merchant also emphasized that the bank and Gupta have no connection to the actions of the program managers involved in the investigation.

As the situation develops, observers are closely monitoring the implications of Gupta’s arrest on Fino Payments Bank’s operations and reputation. Details remain unconfirmed regarding the full scope of the investigation and any potential repercussions for the bank.