New Delhi, February 27 Fino Payments Bank on Friday said that tax authorities have arrested its managing director and CEO, Rishi Gupta, for violating the law related to the Goods and Services Tax (GST).
Following the arrest, a special board meeting was convened, during which Ketan Merchant, the bank's Chief Financial Officer, was appointed as the head of the organization to continue and oversee day-to-day operations, Fino Payments Bank said in a regulatory filing.
Gupta has been "arrested under the provisions of Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017," it said.
The investigation relates to the bank's business partners, and not to the bank's compliance with GST, the bank said.
"The bank is cooperating with the authorities to provide all necessary information. Currently, there is no impact on the bank... Any further developments in this regard will be disclosed in due course," it said.
The payment bank clarified that none of the bank officials were involved, and the investigation was related to the bank's business partners.
Commenting on the arrest, Rajesh Narain Gupta, Chairman at the law firm SNG and Partners, said that it created a shock wave among bankers and professionals.