GST The Directorate General of Intelligence (DGGI) is investigating GST evasion of Fino Payments Bank. The company is suspected of using shell companies and payment platforms to launder illegal money earned from online money gaming banned in the country. Sources gave this information on Saturday. Sources said, “The investigation so far has revealed the involvement of a senior official of the bank in the fraud, who has been arrested.” Fino Payments Bank had said on Friday that GST officials have arrested the bank’s managing director and CEO Rishi Gupta for violating GST related laws.
GST theft worth crores of rupees
Sources associated with the case said that the initial investigation by the Directorate General of GST Intelligence (DGGI) is into the online money gaming case banned in the country. Sources said that preliminary investigation indicates that many shell and fake companies, payment ‘aggregators’ etc. have been used in GST evasion worth crores of rupees. These have been used to launder illegal funds earned from online money gaming. The CEO of Fino Payments Bank has been arrested under provisions of sections 132(1)(a) and 132(1)(i) of the CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) Act, 2017.
Ketan Merchant appointed head of the company
Fino Payments Bank had informed about the arrest of Rishi Gupta on Friday. Fino Payments Bank had said in a regulatory filing that after the arrest of Rishi Gupta, a special board meeting was called in which the bank’s Chief Financial Officer Ketan Merchant was appointed as the head of the company to run and oversee the daily operations. “The bank is cooperating with GST authorities to provide all necessary information,” Fino Payments Bank said in a statement. Right now, there is no impact on the bank. Any further information in this regard will be given at the appropriate time.” Fino Payments Bank is a listed company and big action can be seen in its shares on Monday.
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