Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been arrested in connection with an alleged tax evasion case involving approximately ₹840 Crores. The Telangana High Court has dismissed Gupta’s writ petition seeking bail, marking a significant development in this ongoing investigation.
Gupta’s arrest stems from accusations that he masterminded transactions with shell entities, which are believed to have routed around ₹3,000 Crores linked to illegal online gaming platforms. He has been in judicial custody since late February 2026, as the Directorate General of GST Intelligence continues its probe into the matter.
In response to Gupta’s arrest, Fino Payments Bank appointed Ketan Merchant as interim CEO for a maximum of four months. Despite the turmoil surrounding Gupta, the bank has stated that its operations remain stable and uninterrupted, with a daily addition of approximately 10,000 CASA accounts.
However, the impact of Gupta’s arrest is evident in the financial markets. Fino Payments Bank’s shares have plummeted nearly 28% since the news broke, closing at ₹139.50, down from a 52-week high of ₹135.2. This decline raises concerns about investor confidence and the bank’s future stability.
Gupta’s plea to declare his arrest unlawful claimed it was arbitrary and violative of fundamental rights under 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,” Gupta stated in his petition.
Fino Payments Bank has acknowledged the court’s order dismissing Gupta’s petition and emphasized 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 also distanced the bank from the allegations against Gupta, asserting, “The Bank and its MD & CEO Rishi Gupta have nothing to do with the actions of the programme managers.” This statement aims to reassure stakeholders amid the ongoing scrutiny.
As the investigation unfolds, observers are keenly watching how Fino Payments Bank navigates this crisis and whether Gupta’s legal challenges will impact the bank’s trajectory in the long term. Details remain unconfirmed about the full extent of the allegations and their implications for the bank’s operations.
