This bank's MD and CEO Rishi Gupta arrested over GST violation linked to business partners
New Delhi (The Uttam Hindu): Tax authorities have arrested Rishi Gupta, Managing Director and Chief Executive Officer (CEO) of Fino Payments Bank, in a major case of alleged violation of Goods and Services Tax (GST) laws. The bank officially announced this major action in a regulatory filing on Friday. The high-profile arrest has sent shockwaves through the banking and corporate sectors.
CFO Ketan Merchant has been given the reins of the bank.
Fino Payments Bank said that a special emergency meeting of the bank's board of directors was called immediately following the sudden arrest of Rishi Gupta. In this crucial meeting, the bank's Chief Financial Officer (CFO), Ketan Merchant, was appointed as the head of the company to oversee the smooth functioning and day-to-day operations. According to official information, Rishi Gupta has been arrested under the stringent provisions of sections 132(1)(a) and 132(1)(i) of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Acts, 2017.
The bank clarified that the matter is related to the business partner.
Clarifying the situation regarding this entire incident, Fino Payments Bank issued a statement stating that the bank is fully cooperating with GST officials in the investigation and providing all necessary information. The bank clarified that no other bank officials are involved in this matter and that the entire investigation is related to a business partner. The bank claims that its operations are currently unaffected. Meanwhile, Rajesh Narayan Gupta, chairman of the law firm SNG & Partners, expressed surprise at the arrest, saying that the news has come as a shock to professionals. He urged the government to re-examine the stringent provisions under GST laws, such as immediate arrest.
The news of the arrest caused panic in the stock market.
The news of the MD's arrest has had a very negative impact on the shares of this company, which was listed on the domestic stock market in the year 2021. On Friday, the shares of Fino Payments Bank closed at Rs 192.45 on the BSE with a huge fall of 7.50 percent (Rs 15.60). During the day's trading, the bank's shares fell to a low of Rs 182.90. According to BSE data, the 52-week high of Fino Payments Bank shares is Rs 339.00 and the lowest level is Rs 180.50. After this huge fall, the total market cap of the company currently stands at Rs 1,601.54 crore.