Union Finance Minister Nirmala Sitharaman announced plans to investigate the recent arrest of Fino Payments Bank’s Managing Director and CEO, Rishi Gupta. Gupta was detained under the Central Goods and Services Tax Act and the State Goods and Services Tax Act. In response, the bank has appointed CFO Ketan Merchant to oversee daily operations.
The Central Board of Indirect Taxes and Customs (CBIC) is expected to assess the situation, with the Finance Ministry likely to request a detailed report following Sitharaman’s attention to the matter. Merchant clarified that the issue pertains to a GST investigation involving their business partners, emphasizing that the bank and its CEO are not directly involved in the actions of the program managers.
Former Infosys CFO Mohandas Pai raised concerns about the arrest on social media, prompting Sitharaman to acknowledge the issue. Responding to Pai’s post, the Finance Minister assured that she would look into the matter. Merchant reiterated the bank’s commitment to compliance, stating that they have strong corporate governance and legal adherence, including with GST regulations.
Fino Payments Bank affirmed its trust in the legal system and pledged cooperation with authorities. They assured customers and stakeholders that business operations would continue without disruption, emphasizing their dedication to customer service and compliance.
