Fino Payments Bank MD Rishi Gupta arrested in ₹3,000 crore GST betting case
HYDERABAD: The Directorate General of GST Intelligence (DGGI), Hyderabad unit, on Friday arrested Rishi Gupta, managing director and chief executive officer of Fino Payments Bank, in connection with an alleged online betting-linked Goods and Services Tax (GST) evasion case.
Gupta was taken into custody in Mumbai at 3.55 IST under provisions of the Central Goods and Services Tax (CGST) Act and the State Goods and Services Tax (SGST) Act. According to sources, he was later shifted to JJ Hospital after he complained of chest pain.
DGGI officials are awaiting medical clearance to produce him before the jurisdictional court.
Probe centres on routing of betting app funds
Sources said investigators suspect the routing of nearly ₹3,000 crore linked to betting app transactions through banking channels. The broader online betting network under scrutiny is estimated to involve transactions worth about ₹13,000 crore.
The probe centres on allegations that funds generated through betting apps were moved through a network of entities, including Wegofin Digital Solutions Private Ltd and PSRao Digital Solutions Private Ltd.
Authorities have identified certain directors of these firms among the accused. The probe named Wegofin directors Vennapusa Rajasekhar Reddy and YS Prabhu Kumar among those under investigation. The DGGI had earlier arrested Pankaj of Adsum, described as a third-party verification entity.
Bank says no impact on operations
In a disclosure to stock exchanges under Securities and Exchange Board of India (SEBI) regulations, Fino Payments Bank said the arrest pertains to certain “business partners” and not to the bank’s GST compliance.
“The investigation is related to business partners, not to our GST compliance. The bank is cooperating with the authorities. There is no impact on the bank,” the statement said.
The bank added that none of its officials is implicated and that it is cooperating fully with authorities. It said there is currently no material impact on operations and that any significant development will be disclosed.
Following the arrest, the bank convened a special board meeting and appointed chief financial officer Ketan Merchant to oversee day-to-day operations in Gupta’s absence until further resolution or his return.
