Rishi Gupta Arrested in Telangana Over Alleged Tax Evasion
Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been arrested in Telangana over allegations of tax evasion totaling approximately ₹840 Crores. The Telangana High Court has dismissed Gupta’s writ petition seeking bail, which he claimed was unlawful.
Gupta’s arrest stems from accusations of orchestrating transactions with shell entities, with the Directorate General of GST Intelligence leading the investigation. Reports indicate that around ₹2800 Crores in transactions may be linked to an organized syndicate involved in illegal online gaming platforms.
Since his arrest in late February 2026, Gupta has remained in judicial custody. His plea argued that his arrest was arbitrary and violated several articles of the Constitution of India, including Articles 14, 19, 21, and 22.
In the wake of Gupta’s arrest, Fino Payments Bank has appointed Ketan Merchant as interim CEO for a maximum of four months. Despite the turmoil, the bank’s operations have reportedly remained stable and uninterrupted, with daily additions of approximately 10,000 CASA accounts.
Fino Payments Bank has also acknowledged the court’s decision, stating, “We acknowledge the order passed by the Hon’ble High Court of Telangana dismissing the writ petition filed by Rishi Gupta.” The bank has committed to engaging constructively with regulators and stakeholders, ensuring compliance with applicable laws.
However, the financial impact of Gupta’s arrest has been significant, with the bank’s shares declining nearly 28% since the incident. The share price fell to a 52-week low of ₹135.2, closing at ₹139.50 after the news broke.
As the investigation continues, observers are closely watching how Fino Payments Bank navigates this challenging period and what further developments may arise from Gupta’s case. Details remain unconfirmed.
