Court imposes strict conditions as ₹840 Cr tax evasion investigation continues
Bail Granted Amid Ongoing Investigation
A Hyderabad court has granted bail to Fino Payments Bank MD and CEO Rishi Gupta in connection with a GST evasion probe.
The Special Judge for Economic Offences allowed bail on a ₹10 lakh personal bond with two sureties of the same amount.
Does this signal relief for the fintech firm—or just a pause in a deeper legal battle?
Conditions Signal Continued Scrutiny
The court attached strict conditions to the bail:
- Deposit of passport
- Prior permission required for international travel
- Mandatory appearance before authorities on the first and third Monday of each month
These safeguards indicate that while Gupta is out on bail, the investigation remains active and closely monitored.
The Case: ₹840 Cr GST Evasion Allegations
The Directorate General of GST Intelligence (DGGI) is probing alleged GST evasion of ~₹840 crore, linked to transactions worth nearly ₹3,000 crore.
Authorities claim Gupta was among the “masterminds” of a syndicate routing funds tied to illegal online gaming platforms through shell entities and intermediaries.
Gupta was arrested in late February under GST law provisions, and his earlier bail plea was dismissed by the Telangana High Court.
Company Response and Operational Continuity
Fino Payments Bank has maintained that:
- Operations remain stable and unaffected
- The मामला relates to programme managers working with multiple banks
To ensure continuity:
- CFO Ketan Merchant has been appointed interim CEO
- A committee of senior executives and board members is overseeing operations
Can governance structures insulate fintech firms from leadership shocks during regulatory crises?
Strategic Context: Transition to Small Finance Bank
The development comes at a critical time as Fino prepares to transition into a small finance bank, following RBI’s in-principle approval (Dec 2025).
The company aims to complete this shift within an 18-month timeline, making regulatory clarity even more crucial.
Market Reaction
Investor sentiment appeared resilient:
- Shares of Fino Payments Bank rose 9.99% to ₹122.75 in the last trading session
Markets may be pricing in operational stability despite legal overhangs.
TL;DR
Fino Payments Bank CEO Rishi Gupta has been granted bail in a ₹840 Cr GST evasion case, with strict conditions imposed. While the investigation continues, the company says operations remain stable amid its transition to a small finance bank.
AI summary
- Rishi Gupta granted bail with ₹10L bond and conditions
- मामला linked to ₹840 Cr GST evasion probe
- Must surrender passport and report regularly
- Fino appoints interim CEO to ensure continuity
- Shares rise nearly 10% despite ongoing investigation
