Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been arrested in connection with an alleged tax evasion case involving ₹840 crore.
Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been arrested in an alleged tax evasion case involving approximately ₹840 crore. The Telangana High Court recently dismissed Gupta’s writ petition seeking bail, which claimed his arrest was unlawful.
Gupta’s arrest stems from accusations of masterminding transactions with shell entities, with the investigation revealing an organized syndicate allegedly routing funds linked to illegal online gaming platforms. Gupta has been in judicial custody since late February 2026.
In response to his arrest, Fino Payments Bank appointed Ketan Merchant as interim CEO for a maximum of four months. Despite the leadership change, the bank’s operations remain stable and uninterrupted, with the company stating, “The Bank shall continue to engage constructively with regulators and stakeholders and shall make appropriate disclosures in accordance with applicable laws and regulatory requirements.”
Fino Payments Bank’s shares have seen a significant decline of nearly 28% since Gupta’s arrest, closing at ₹139.50 after hitting a 52-week low of ₹135.2. The bank had previously received in-principle approval from the Reserve Bank of India to transition into a small finance bank in December 2025, which may now be overshadowed by the ongoing legal issues.
Gupta’s plea to the court sought to declare his arrest as arbitrary and illegal, asserting violations of several articles of the Constitution of India. Following the court’s dismissal of his petition, Fino Payments Bank acknowledged the ruling, stating, “We acknowledge the order passed by the Hon’ble High Court of Telangana dismissing the writ petition filed by Rishi Gupta.”
As the investigation continues, observers are closely monitoring the situation, particularly regarding the impact on Fino Payments Bank’s operations and reputation. Details remain unconfirmed about the full extent of the allegations against Gupta and the potential ramifications for the bank.
