While the arrest was made beneath the provisions of Section 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017, respectively, the financial institution stated that the investigation is said to enterprise companion(s) and never referring to the GST compliance.
Sources stated that the matter is said to pretend invoices which prompted GST loss to the federal government.
He was arrested by DGGI, Hyderabad. DGGI is the investigation wing of the GST. The officers visited the top workplace on February 26 to query Gupta and different senior administration members concerning the financial institution’s enterprise companions, sources stated
“The bank is co-operating with the authorities to provide all the necessary information,” Fino stated in a regulatory submitting to inventory exchanges.
Fino maintained that not one of the financial institution officers had been concerned whereas including that the estimated quantity concerned within the case is being gauged.
The financial institution board held a particular board assembly to nominate Merchant as a head of the group to hold on and oversee the day-to-day operations in absence of Gupta. He will act because the interim head until the management problem is resolved by the board or Gupta resumes workplace, whichever is earlier.The financial institution’s share worth fell 7.5% Friday to Rs 192.45 on BSE.
Fino Payments Bank obtained “in-principle” approval from the Reserve Bank of India (RBI) on December 5, 2025, to transition right into a Small Finance Bank (SFB), the primary funds financial institution to get such an approval.
