Telangana HC Dismisses Fino Bank MD Rishi Gupta’s Plea

The Telangana High Court has dismissed the writ petition filed by Fino Payments Bank’s MD and CEO Rishi Gupta seeking bail, weeks after his arrest in an alleged tax evasion case.  A bench comprising Telangana HC chief justice Aparesh Kumar Singh and Justice GM Mohiuddin dismissed Gupta’s writ petition today, which sought the court to declare that the arrest by the authorities as unlawful. 

Gupta’s prayer essentially sought to have his arrest and custody declared illegal and to secure his release on bail, stating: “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.”

Fino Payments Bank told Inc42 that it has taken note of the court’s order but is awaiting a copy of the judgment. 

“We acknowledge the order passed by the Hon’ble High Court of Telangana dismissing the writ petition filed by Rishi Gupta. However, we await the copy of the order and hence will limit our comment to the outcome of the hearing at this stage. As previously stated, the ongoing investigation concerns certain program managers associated with multiple banks and does not relate to Fino Payments Bank’s GST compliance. Fino Payments Bank reiterates its commitment to strong governance practices. The Bank’s operations remain stable and uninterrupted, and we continue to serve our customers and stakeholders in the normal course of business,” the bank said.

The case — Rishi Nand Kishore Gupta v Union Of India — traces its roots to an ongoing probe conducted by the Directorate General of GST Intelligence (DGGI) on Gupta. As per the agency, Gupta was among the “masterminds” of an organised syndicate routing funds linked to illegal online gaming platforms via shell entities and programme managers.

The alleged GST evasion has been pegged at around ₹840 Cr, based on an estimated ₹3,000 Cr in transactions routed through such entities.

Gupta was arrested by the DGGI in late February under provisions of the GST law. Following the CEO’s arrest, the bank appointed CFO Ketan Merchant as interim CEO to oversee day-to-day operations, while a committee of directors and senior executives was set up to ensure business continuity.

Fino Payments Bank has said there has been no impact on its operations or financial position. Customer balances and transaction volumes remain stable, and the bank continues to add around 10,000 CASA accounts daily.

The company also claims to be proceeding with its planned transition into a small finance bank, for which it received in-principle approval from the Reserve Bank of India in December 2025. The bank has an 18-month window to complete the transition and said it expects to do so within the timeline.

The company’s shares have tanked close to 28% since Gupta’s arrest. After touching a fresh 52-week low of ₹135.2 during intraday trade today, Fino’s shares ended today’s trading at ₹139.50. This marked a 7.52% decline from Friday’s close. 

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