Hyderabad: In the ongoing investigation into the multi-crore online betting fraud, the Directorate General of GST Intelligence (DGGI) has reportedly uncovered the involvement of Fino Payments Bank and its CEO, Rishi Gupta, in onboarding dummy programme managers and facilitating an extensive network of shell entities. These findings were presented by DGGI in its petition before a local court seeking Gupta’s custody, which the court granted for two days. According to DGGI, three entities were brought in as programme managers or resellers but were later discovered to be non-functioning dummy firms. Investigators alleged that transactions worth around Rs 3,000 crore connected to online gaming operations were routed through the bank via these dummy programme managers alone. Through them, 36 additional shell entities were onboarded under the bank’s role as a payment aggregator. The agency alleged a systemic failure of due diligence, stating that the onboarding drive was encouraged to boost turnover and fee-based income, despite the absence of mandatory inspections, audits, or risk monitoring—activities the bank was contractually empowered to conduct.A special judge for economic offences in Hyderabad granted DGGI two-day custody of Rishi Gupta. He had been taken into custody by investigators on Monday for questioning, with custody scheduled to end on Tuesday evening.Investigators identified two specific entities—Oceanique Web Solutions Private Limited and Webwin IT Hub Solutions Private Limited—and conducted physical verification. These firms, allegedly linked to gaming websites and apps such as funinmatch360.com and Racejeet, were found to be dummy and non-functional.Three entities were identified as dummy programme managers or resellers: PS Rao Digital Solutions (OPC) Private Limited, Billexpress Solutions Private Limited, and Powerfin Technology Private Limited. According to DGGI, “These programme managers were used to onboard 36 shell entities through Fino Payments Bank under its role as a payment aggregator,” DGGI, the apex body for investigating GST and central excise duty evasion, alleged. It also shared a list of eight suspected programme manager or reseller entities with the bank, seeking more information.DGGI claimed the shell firms were created under the guise of legitimate merchants or resellers, but physical verification showed they were non-functional and existed solely to facilitate illegal activities. These entities were allegedly part of an organised syndicate linked to illegal online real-money gaming platforms and were used to route massive volumes of funds while suppressing taxable transactions. By providing gaming services without issuing tax invoices, the syndicate was able to mask operations, suppress turnover, and avoid declaring taxable supplies in GST returns.Due Diligence FailureThe agency informed the court that the taxable value of services provided to the dummy or non-functioning merchants through the three programme managers between Oct 1, 2023, and Sept 30, 2025, amounted to about Rs 28 crore. With a transaction fee of approximately 0.75%, investigators estimated that the total transaction value handled through the bank via these programme managers was around Rs 3,000 crore, on which 28% GST was allegedly evaded.DGGI further stated Rishi Gupta played a key role in selecting and approving partners and programme managers associated with the bank. Investigators alleged that the onboarding of the entities took place under his supervision, describing it as “active collusion” and “conscious facilitation” at the highest levels of management.The agency also contended that Gupta was the “mastermind in the commission of the offence” and reported facing obstruction when officials attempted to enter the bank premises to conduct investigations and record statements. While granting custody, the court permitted Gupta’s counsel to remain present at a distance during questioning, without interfering in the investigation.
