GST overreach? FM Sitharaman to look into Fino Payments Bank chief's arrest

Mumbai: Finance minister Nirmala Sitharaman on Saturday said she would look into allegations of overreach by GST authorities after businessman TV Mohandas Pai raised concerns over the arrest of Fino Payments Bank MD & CEO Rishi Gupta in a Rs 3,000 crore GST evasion case.

In a post on X, Pai questioned the action against the chief executive of a regulated bank over alleged irregularities linked to a business partner. "How can a CEO of a regulated bank be arrested for an issue with a business partner? Is this not overreach? @FinMinIndia has given vast powers for GST. What is the safeguard for citizens against misuse? Please intervene," he said.

Responding to the post, Sitharaman said, "Thanks for sharing this. Will check". Gupta was arrested on Friday by Directorate General of GST Intelligence (DGGI), Hyderabad unit, in connection with an alleged Rs 3,000 crore GST evasion case involving online betting apps. The probe alleges betting-generated funds were routed through banking channels via a network of entities, including Wegofin Digital Solutions and PSRao Digital Solutions.

In a statement, Fino Payments Bank said the investigation pertained to certain business partners and not to the bank or its MD & CEO. "The issue is with regard to a GST investigation pertaining to our business partner(s). The bank and its MD & CEO - Mr Rishi Gupta - have nothing to do with the actions of the business partner(s). We have full faith in the country's judiciary and will continue to extend full cooperation and assistance to the authorities in the ongoing process," it said.

The development comes weeks after Fino Payments Bank received in-principle approval to convert into a small finance bank. Gupta is a founding member of Fino Payments Bank and earlier worked with Financial Information Network and Operations, the erstwhile name of the bank's promoter, Fino PayTech.