Rishi Gupta, the Managing Director and Chief Executive Officer of Fino Payments Bank, is currently facing significant legal challenges after the Telangana High Court dismissed his writ petition seeking bail. Gupta was arrested in connection with an alleged tax evasion case, with the amount in question pegged at around ₹840 Crores.
Gupta’s arrest, which occurred in late February 2026, is tied to accusations that he masterminded transactions with shell entities, reportedly involving an estimated ₹3000 Crores in transactions. The investigation is being conducted by the Directorate General of GST Intelligence and is said to involve an organized syndicate routing funds linked to illegal online gaming platforms.
In his plea, Gupta argued for the declaration of his arrest as unlawful, claiming it to be arbitrary and violative of constitutional rights. “Declare the arrest of the Petitioner… to be arbitrary, illegal, highhanded and violative of Articles 14, 19, 21 and 22 of the Constitution of India,” Gupta stated.
Following his arrest, Fino Payments Bank appointed Ketan Merchant as interim CEO for a maximum of four months. Despite the upheaval, the bank’s operations have remained stable and uninterrupted, with a statement affirming their commitment to engage constructively with regulators and stakeholders.
Fino Payments Bank, which received in-principle approval from the Reserve Bank of India to transition into a small finance bank in December 2025, has seen its shares decline nearly 28% since Gupta’s arrest. The bank’s share price fell to a 52-week low of ₹135.2, closing at ₹139.50 after trading on the day of Gupta’s arrest.
In a statement, Fino Payments Bank acknowledged the court’s decision regarding Gupta’s writ petition, emphasizing that the bank and its leadership have no involvement in the actions of the programme managers implicated in the case.
As the situation develops, observers are keenly watching how the ongoing investigation will impact both Gupta’s future and the operations of Fino Payments Bank. Details remain unconfirmed regarding the full extent of the allegations and their implications for the bank’s trajectory.
