The Telangana High Court has dismissed the writ petition filed by Rishi Gupta, Managing Director and CEO of Fino Payments Bank, seeking bail following his arrest in a tax evasion case.
A bench led by Chief Justice Aparesh Kumar Singh and Justice GM Mohiuddin ruled against Gupta's request to declare his arrest unlawful.
Gupta's petition argued that his arrest was arbitrary and violated several Articles of the Indian Constitution, including Articles 14, 19, 21, and 22.
In response to the court's decision, Fino Payments Bank acknowledged the ruling but noted that it is awaiting a copy of the judgment. The bank emphasized that the ongoing investigation pertains to certain program managers linked to multiple banks, not its GST compliance.
Fino Payments Bank stated, "We remain committed to strong governance practices. Our operations are stable and continue without interruption, serving our customers and stakeholders effectively."
The case, titled Rishi Nand Kishore Gupta v Union Of India, is part of a broader investigation by the Directorate General of GST Intelligence (DGGI). The agency claims Gupta was involved in a syndicate that funneled funds from illegal online gaming through shell entities.
The alleged GST evasion is estimated at around ₹840 Crores, linked to approximately ₹3,000 Crores in transactions through these entities.
Gupta was arrested by the DGGI in late February under GST law provisions. Following his arrest, Fino Payments Bank appointed CFO Ketan Merchant as interim CEO to manage daily operations.
The bank has reported no adverse effects on its operations or financial health, with customer balances and transaction volumes remaining stable. It continues to open around 10,000 CASA accounts daily.
Fino Payments Bank is also on track for its transition into a small finance bank, having received in-principle approval from the Reserve Bank of India in December 2025. The bank aims to complete this transition within the allotted 18-month timeframe.
Since Gupta's arrest, the company's shares have dropped nearly 28%, reaching a 52-week low of ₹135.2 during intraday trading before closing at ₹139.50, a decline of 7.52% from the previous close.
