Finance Minister Nirmala Sitharaman on Saturday said she would look into the arrest of Rishi Gupta, Managing Director and CEO of Fino Payments Bank, in a case linked to alleged GST violations.
“Thanks for sharing this. Will check,” she wrote on social media platform X, responding to concerns raised by industry veteran Mohandas Pai.
Pai questioned whether authorities had overstepped by arresting the CEO of a regulated bank under GST provisions in connection with an issue involving a business partner.
“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.
Earlier on Saturday, Fino Payments Bank informed the stock exchange that its MD and CEO, Rishi Gupta, had 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.
Following the development, the bank convened a special board meeting to ensure operational continuity. It appointed Ketan Merchant, the Chief Financial Officer, as the temporary head of the organisation to manage day-to-day operations during Gupta’s absence.
The bank stated that as a regulated entity, it complies with all applicable 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 statement added.
The matter has sparked discussion over the scope of enforcement powers under GST laws and the safeguards available against potential misuse.
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