FM Sitharaman to review Fino Payments Bank CEO Rishi Gupta’s arrest under GST Act

Finance Minister Nirmala Sitharaman on Saturday stated she’s going to look into the matter associated to the arrest of Fino Funds Financial institution Managing Director Rishi Gupta for ‘violating the legislation’ associated to the Items and Providers Tax. The financial institution has maintained that Gupta shouldn’t be related to the alleged GST-related subject below investigation.

Sitharaman responded to issues raised on social media by Mohandas Pai, former CFO and board member at Infosys. Acknowledging his publish, she wrote: “Thanks for sharing this. Will test.”

Thanks for sharing this. Will test. https://t.co/G9YN14EUKn

— Nirmala Sitharaman (@nsitharaman) February 28, 2026

In his message, Pai questioned how the chief govt of a regulated financial institution may very well be arrested over a matter involving a enterprise accomplice. He additionally requested whether or not the motion amounted to overreach, noting that the Finance Ministry has granted in depth powers below GST legal guidelines. Pai additional sought readability on what safeguards exist to forestall potential misuse of these powers and known as for the minister’s intervention.

Following the arrest, a particular board assembly was convened whereby Ketan Service provider, Chief Monetary Officer of the financial institution, was appointed as head of the organisation to hold on and oversee day-to-day operations, Fino Funds Financial institution stated in a regulatory submitting.

Gupta has been ”arrested below the provisions of Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017,” it stated.

The investigation is said to enterprise accomplice(s) of the financial institution, and never GST compliance by it, the financial institution stated.

”The financial institution is cooperating with the authorities to offer all needed data. Presently, there isn’t a influence on the financial institution… Any additional materials growth on this regard might be disclosed in the end,” it stated.

The cost financial institution clarified that not one of the financial institution officers have been concerned, and the investigation was associated to enterprise accomplice(s) of the financial institution.

Commenting on the arrest, Rajesh Narain Gupta, Chairman on the legislation agency SNG and Companions, stated it created a shock wave amongst bankers and professionals.

Gupta additionally puzzled why instant arrest occurs below GST legal guidelines, saying the federal government ought to re-examine the ”draconian” provisions.