Hyderabad: The Directorate General of GST Intelligence (DGGI), Hyderabad unit, on Friday arrested Rishi Gupta, managing director and CEO of Fino Payments Bank, in connection with an alleged online betting-linked GST evasion case.Gupta was taken into custody in Mumbai at 3.55 am under various sections of the CGST and SGST Act. According to sources, he was later shifted to JJ Hospital after he complained of chest pain. DGGI officials are awaiting medical clearance to produce him before the jurisdictional court.Sources said investigators suspect the routing of nearly Rs 3,000 crore linked to betting app transactions through banking channels. The broader online betting network under scrutiny is estimated to involve transactions worth about Rs 13,000 crore.The probe centres on allegations that funds generated through betting apps were moved through a network of entities, including Wegofin Digital Solutions Private Ltd and PSRao Digital Solutions Private Ltd.Authorities have identified certain directors of these firms among the accused. The probe identified Wego Fin directors Vennapusa Rajasekhar Reddy and YS Prabhu Kumar, named among the accused. The DGGI had earlier arrested Pankaj of Adsum, described as a third party verification entity.In a disclosure to stock exchanges under SEBI regulations, Fino Payments Bank said the arrest pertains to certain business partners and not to the bank’s GST compliance. The bank stated that none of its officials is implicated and that it is cooperating fully with authorities.It added that there is currently no material impact on operations and that any significant development will be disclosed.Following the arrest, the bank convened a special board meeting and appointed chief financial officer Ketan Merchant to oversee day-to-day operations in Gupta’s absence until further resolution or his return.
