FM Nirmala Sitharaman says she will look into Fino Bank CEO's arrest under GST Act

Finance Minister Nirmala Sitharaman on Saturday assured that she would examine the matter concerning the arrest of Rishi Gupta, managing director of Fino Payment Bank, who was detained in a case related to Goods and Services Tax (GST) evasion.

"Thanks for sharing this. Will check," she wrote on social media X, responding to concerns raised by industry veteran Mohandas Pai, who questioned whether authorities overstepped in arresting a bank chief executive under GST laws.

Thanks for sharing this. Will check. https://t.co/G9YN14EUKn

Pai asked how a CEO of a regulated bank could be arrested over an issue involving a business partner, suggesting that the authorities might have exceeded their powers under GST rules. He also raised questions about what safeguards exist to protect citizens from misuse of these powers.

"Madame ⁦Nirmala Sitharaman,  please see this. How can a CEO of a regulated bank be arrested for an issue with a business partner? Is this not overreach?" he wrote.

"The Finance Ministry has given vast powers for GST. What is the safeguard for citizens against misuse? Please intervene," he added.

Madame ⁦@nsitharaman⁩ please see this. 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 pic.twitter.com/yob4aYeH7J

On Saturday, Fino Payments Bank informed the stock exchange that its MD and CEO, Rishi Gupta, has been arrested under specific sections of the CGST and SGST Act, 2017. "The issue relates to a GST investigation concerning our business partner(s)," the bank said in its statement.

The bank also held a special board meeting on the same day to ensure smooth operations and appointed Ketan Merchant, the bank's CFO, as the temporary head of the organization to manage day-to-day work during Gupta's absence.

"As a regulated entity, we are compliant with all the laws, including GST.  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," the bank added.

"We stand committed to deliver on our customer centricity," it continued.