DGGI Arrests Fino Payments Bank CEO in Hyderabad Over Massive Online Gaming Probe
The Directorate General of GST Intelligence (DGGI) has intensified its crackdown on a sprawling international online gaming syndicate, culminating in the arrest of Fino Payments Bank CEO and Managing Director Rishi Gupta. Gupta was brought to Hyderabad on Saturday after being apprehended in Mumbai, marking a significant escalation in an investigation that alleges transactions exceeding Rs 13,000 crore.
Arrest and Transit to Hyderabad
Rishi Gupta was arrested in Mumbai on Friday and subsequently produced before a local court, which granted a 72-hour transit remand. He was transported to Hyderabad on Saturday evening and is expected to be presented before a court in the city. The DGGI's action follows repeated summons and reminders that, according to the agency, were ignored by Gupta and the bank, leading to his detention for failing to furnish critical information and documents.
Probe into Rs 13,000 Crore Gaming Syndicate
The DGGI Hyderabad unit is spearheading an investigation into an alleged international online gaming syndicate involving financial transactions estimated at over Rs 13,000 crore. Authorities are currently verifying Gupta's role in transactions linked to other accused individuals within this network. Sources indicate that officials are also scrutinizing his foreign travels as part of the broader inquiry.
Allegations of Non-Compliance and Obstruction
According to the DGGI, the agency initiated a search operation under Section 67 of the GST Act, 2017, on February 26 at Fino Bank's registered office in Mumbai. During this operation, employees of the bank, allegedly acting under instructions from the CEO/MD, obstructed GST officers. The staff reportedly blocked officials, refused to cooperate, and denied access to data stored in the bank's systems, impeding the discharge of their duties.
Links to Previous Arrests and Shell Entities
The investigation has revealed connections to earlier arrests in the same case. Fino Bank had availed services from Adsum Advisory Services Private Limited, whose director was previously arrested and sent to judicial custody for allegedly conducting fraudulent KYC verification of shell entities and merchants involved in routing money connected to online gaming. Additionally, the probe found that program managers and partners of Fino Bank, including PSRao Digital Solutions Private Ltd, Billexpress Solutions Private Ltd, and Powerfin Technology Pvt Ltd, were reportedly non-functional and dummy entities.
Broader Implications and Ongoing Investigation
This arrest underscores the DGGI's rigorous approach to enforcing GST compliance and tackling financial irregularities in the digital economy. The agency's focus on the online gaming sector highlights concerns over money laundering and tax evasion through complex corporate structures. As the investigation progresses, authorities are expected to delve deeper into the syndicate's operations and the involvement of other entities.
