Fino Bank CEO Arrest Linked To GST Probe Into Online Gaming Fund Flows

The Directorate General of GST Intelligence (DGGI) is investigating an alleged GST evasion case linked to banned online money gaming operations and this is tied to the arrest of Fino Payments Bank CEO Rishi Gupta, according to sources familiar with the matter.

The initial findings of the probe indicate GST evasion running into several crores, with investigators uncovering a network of shell and non-existent entities allegedly used to route funds generated through online money gaming activities, sources told NDTV Profit. Multiple payment aggregators were also part of the trail, with illicit proceeds allegedly funnelled through layered transactions to mask the origin of funds.

The probe has, so far, pointed to the involvement of Gupta, who is suspected to have facilitated or enabled the movement of funds connected to the gaming operations. The official has been taken into custody as investigations deepen.

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Authorities are examining financial flows, digital transaction trails and the role of intermediaries in what is emerging as a broader crackdown on tax evasion linked to online gaming platforms operating in violation of regulations.

Further investigation is underway, and more entities could come under scrutiny as the DGGI expands the scope of the probe.

In a recent exchange filing, Fino Payments Bank stated that the ongoing GST probe is directed at a program manager associated with multiple banks rather than Fino Payments Bank itself. The lender further emphasised that neither the institution nor its officials have anything to do with the actions, operations or alleged misconduct of the program manager.

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