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 recently dismissed Gupta’s writ petition seeking bail, further complicating his legal situation.
Gupta’s arrest stems from accusations that he masterminded transactions with shell entities, which are believed to have routed around ₹3,000 Crores through illegal online gaming platforms. He has been in judicial custody since late February 2026, as investigations by the Directorate General of GST Intelligence continue.
In response to Gupta’s arrest, Fino Payments Bank has appointed Ketan Merchant as interim CEO for a maximum of four months. Despite the upheaval, the bank has assured stakeholders that its operations remain stable and uninterrupted. “The Bank shall continue to engage constructively with regulators and stakeholders and shall make appropriate disclosures in accordance with applicable laws and regulatory requirements,” a spokesperson stated.
Since Gupta’s arrest, Fino Payments Bank’s shares have seen a significant decline, dropping nearly 28%. The stock closed at ₹139.50, down from a 52-week high, reflecting investor concerns over the ongoing legal issues surrounding its CEO.
Gupta’s plea to declare his arrest as unlawful cited violations of Articles 14, 19, 21, and 22 of the Constitution of India. He argued that the actions taken against him were arbitrary and illegal. “We acknowledge the order passed by the Hon’ble High Court of Telangana dismissing the writ petition filed by Rishi Gupta,” Fino Payments Bank commented.
The ongoing investigation has raised questions about the broader implications for Fino Payments Bank, especially as it received in-principle approval from the Reserve Bank of India to transition into a small finance bank in December 2025. Observers are closely monitoring the situation, as the outcome could significantly impact the bank’s future operations and reputation.
Details remain unconfirmed regarding the full extent of the allegations and the potential ramifications for Gupta and the bank. As the case unfolds, stakeholders will be looking for clarity on the legal proceedings and their implications for Fino Payments Bank.
