Fino Payments Bank MD Rishi Gupta arrested for GST Act violation

New Delhi, Feb 27 (PTI) Fino Payments Bank on Friday said that tax authorities have arrested its managing director and CEO Rishi Gupta for violating the law related to the Goods and Services Tax.

Following the arrest, a special board meeting was convened wherein Ketan Merchant, Chief Financial Officer of the bank, was appointed as head of the organisation to carry on and oversee day-to-day operations, Fino Payments Bank said in a regulatory filing.

Gupta has been "arrested under the provisions of Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017," it said.

The investigation is related to business partner(s) of the bank, and not GST compliance by it, the bank said.

"The bank is cooperating with the authorities to provide all necessary information. Presently, there is no impact on the bank... Any further material development in this regard will be disclosed in due course," it said.

The payment bank clarified that none of the bank officials were involved, and the investigation was related to business partner(s) of the bank.

Commenting on the arrest, Rajesh Narain Gupta, Chairman at the law firm SNG and Partners, said it created a shock wave among bankers and professionals.

Gupta also wondered why immediate arrest happens under GST laws, saying the government should re-examine the "draconian" provisions. PTI DP ARI