In the ongoing investigation into a multi-crore illegal online betting network, the Directorate General of GST Intelligence (DGGI) has alleged serious compliance failures and regulatory lapses by Fino Payments Bank, including onboarding of dummy programme managers, facilitation of shell entities, and inadequate due diligence under its payment aggregator framework. According to the agency, these lapses allegedly enabled transactions worth nearly ₹3,000 crore to be routed through the bank in connection with online gaming operations.
DGGI informed a Hyderabad court that three companies were onboarded by the bank as programme managers or resellers but were later found to be non-functional dummy entities. These firms—PS Rao Digital Solutions (OPC) Private Limited, Billexpress Solutions Private Limited, and Powerfin Technology Private Limited—were allegedly used to onboard 36 additional shell entities under the bank’s payment aggregator ecosystem. Investigators claim these entities were created under the guise of legitimate merchants but were in fact part of a network facilitating transactions linked to illegal online real-money gaming platforms.
As part of the investigation, officials carried out physical verification of several entities suspected to be connected with online gaming websites and mobile applications. Two companies—Oceanique Web Solutions Private Limited and Webwin IT Hub Solutions Private Limited—were found to be non-operational at their registered addresses. According to the agency, these firms were associated with gaming platforms such as funinmatch360.com and Racejeet and were allegedly set up solely to process financial transactions rather than conduct genuine business activities.
Investigators further alleged that the shell entities provided gaming services without issuing tax invoices, thereby suppressing taxable turnover and avoiding disclosure of supplies in Goods and Services Tax (GST) returns. By masking transactions through multiple intermediary entities, the network allegedly routed substantial volumes of funds while concealing the true nature of the underlying activities.
DGGI has also pointed to what it described as a “systemic failure of due diligence” within Fino Payments Bank. The agency alleged that the bank failed to conduct mandatory merchant verification, physical inspections, audits, and risk monitoring, despite having contractual authority to perform such checks. Investigators claim the onboarding of programme managers and merchant entities was allegedly carried out aggressively to increase transaction volumes and generate higher fee-based income.
According to the agency, the taxable value of services provided to the dummy or non-functioning merchants through the three programme managers between October 1, 2023, and September 30, 2025, amounted to approximately ₹28 crore. Based on an estimated transaction fee of about 0.75%, investigators calculated that the total value of transactions processed through the bank via these programme managers was close to ₹3,000 crore.
Authorities allege that the transactions were linked to online gaming services where GST at the rate of 28% was payable but was allegedly not declared or paid, resulting in significant tax evasion.
The DGGI has also shared with the bank a list of eight additional suspected programme managers or reseller entities and sought detailed information as part of the expanding investigation. Officials believe that several shell firms were deliberately created to appear as legitimate merchants, enabling the syndicate to process large volumes of payments while concealing the illegal betting operations and suppressing taxable supplies under the GST regime.
The investigation is ongoing as authorities continue to examine the role of payment intermediaries and the wider network of entities allegedly involved in facilitating financial flows linked to illegal online gaming activities.
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