Under GST Probe, Rishi Gupta Steps Down As Fino MD & CEO

Under regulatory scanner, Rishi Gupta has stepped down as the managing director (MD) and chief executive officer (CEO) of Fino Payments Bank. 

Meanwhile, the company’s board approved the extension of the tenure of Ketan Merchant as the interim CEO of the payments bank for a period of three months, subject to RBI approval. It also extended the tenure of Anup Agarwal as the interim CFO of the company till July 2026. 

In a filing with the exchanges, Fino Payments Bank said that its board accepted Gupta’s request for voluntary early retirement, effective May 21, despite finding him ‘fit and proper’ to continue as MD and CEO of the Bank. With this, he will cease to be a key managerial personnel (KMP) and senior managerial personnel (SMP) of the company.

“At this stage after investing two decades in Fino, I feel it is an appropriate time to rediscover my purpose outside the Bank and explore new avenues that excite and challenge me in newer ways. I wish the Bank continued success in the years ahead and shall be available to ensure a seamless transition…,” Gupta said in his resignation letter.

The payments bank also informed the bourses that its board, during its meeting on May 21, received legal opinions and a report in connection with the probe initiated by the Directorate General GST Intelligence (DGGI) against its outgoing CEO. 

“Based on the consideration of the documents available with the Bank as on date, including the legal opinions and reports received and the facts emanated therefrom, the Board is of a view that no prima facie case could be made out against Mr. Rishi Gupta. Accordingly, the Board of the Bank is of the view that Mr. Rishi Gupta is ‘fit and proper’ to continue as MD & CEO of the Bank,” added the company in its fillings . 

Fino Payments Bank also added that it will continue to work towards operationalisation of the small finance bank (SFB) licence within the stipulated timelines. The payments bank also claimed that its operations remain stable and that there will be no impact on its services.

This comes nearly a month after the payments bank deferred seeking shareholders’ nod on the reappointment of Rishi Gupta as its CEO and MD, following his arrest in a GST evasion case.

This comes three months after the Hyderabad unit of the DGGI arrested Gupta in February in connection with a GST investigation into alleged online betting-linked tax evasion of over ₹840 Cr. 

The DGGI has alleged that Gupta was a part of a syndicate that channelled funds from illegal online gaming platforms through shell entities and programme managers. However, Fino claims that the probe pertains to programme managers from various banks and has nothing to do with the payments bank’s GST compliance. 

Subsequently, a special judge for trial of economic offences cases, Hyderabad, granted bail to Gupta in March after the Telangana High Court (HC) dismissed his writ petition seeking bail. 

Following Gupta’s arrest, Fino had appointed CFO Ketan Merchant as interim CEO and set up a committee of senior executives and board members to oversee operations. 

Owing to the regulatory clampdown, Fino shares have been on a downward trajectory. The stock has declined nearly 43% in the past three months, while the shares of the company are down more than 53% on a year-to-date (YTD) basis. 

Shares of the payments bank closed yesterday’s trading session 0.41% lower at ₹120.95 on the BSE.

The post Under GST Probe, Rishi Gupta Steps Down As Fino MD & CEO appeared first on Inc42 Media.