New Delhi, February 28 The Directorate of Goods and Services Tax Intelligence (DGGI) is investigating GST evasion by Fino Payments Bank, which is suspected of using shell companies and payment aggregators to channel illicit funds generated by online money gaming, sources said on Saturday.
"The investigation so far has revealed the involvement of a senior bank official in the fraud, who has been placed under arrest," they said.
Fino Payments Bank had said on Friday that GST authorities had arrested its managing director and CEO, Rishi Gupta, for violating the Goods and Services Tax (GST) law.
Sources familiar with the case said that the initial investigation by the Directorate General of GST Intelligence (DGGI) is focusing on a case of online money gaming, which is banned in India.
The initial investigation, sources said, indicated that GST evasion involving several crores, involving numerous shell and non-existent entities, payment aggregators, etc., which have been used to channel the illicit funds generated by online money gaming.
The CEO of Fino Payments Bank has been arrested under Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017.
