Fino Payments Bank used shell cos, payment aggregators to move illicit funds from online money gaming: Sources

The Directorate General of GST Intelligence (DGGI) is investigating GST evasion by Fino Payments Bank, which is suspected of using shell companies and payment aggregators to funnel illicit funds generated by online money gaming, sources said on Saturday.

"Investigation conducted so far has brought out the involvement of a senior bank functionary in the fraud, who has been placed under arrest," they said.

GST authorities have arrested its managing director and CEO Rishi Gupta for violating the law related to the Goods and Services Tax (GST), Fino Payments Bank had said on Friday.


Sources in the know of the case said that the initial investigation by the DGGI is investigating a case of online money gaming, which is banned in India.

Initial investigation, sources said indicated that GST evasion of several crores involving many shell and non-existent entities, payment aggregators etc. which have been used to funnel the illicit funds being generated by online money gaming.

Fino Payments Bank CEO has been arrested under the provisions of Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017.