Neokred founders sent to judicial custody in betting-related GST evasion probe
22 Apr 2026, 09:44 PMOver the past three months, officials from 6-7 fintech firms, including Fino Payments Bank, have been arrested, sent to custody, had their offices searched, or bank accounts frozen in connection with illegal gaming tax evasion cases.
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A Visakhapatnam economic offences court has sent co-founders of Bengaluru-based fintech firm Neokred Technologies Private Ltd to a 14 days of judicial custody in an alleged GST evasion case linked to online betting and gaming platforms.
The court remanded Tarun Suresh Nazare and Rohith Reji to custody till May 4. Both are currently lodged in Visakhapatnam Central Prison, a TOI report said.
As per the report, the Directorate General of GST Intelligence (DGGI), Visakhapatnam unit, told the court that its probe had uncovered an organised syndicate allegedly running illegal online gaming websites through a web of fintech companies, including payment banks, payment aggregators, gateways, third-party service providers.
Rohith Reji is alleged to have had direct links to this network.
Neokred reportedly acted as a programme manager, master merchant, and payment gateway provider and onboarded shell and dummy firms such as Eyebrawn Technologies Private Ltd; and helped them secure UPI IDs through banking partners, including Fino Payments Bank.
These IDs were then used to route money from popular gaming apps such as Teen Patti, Rummy Master, Dragon, and Rummy Online -- which were not GST-registered.
According to the DGGI, funds worth Rs 47 crore passed through Eyebrawn alone, with estimated GST dues of around Rs 13 crore going unpaid.
When investigators raided Eyebrawn's premises on April 17, they found the company entirely non-functional — apparently set up for the sole purpose of channelling gaming revenues. A subsequent search of Neokred's offices on April 20 and recorded statements from staff, including the CEO and MD. The investigating officials alleged that Neored officials failed to cooperate and gave vague and evasive answers about contracts executed with Eyebrawn and Fino Payments Bank.
The DGGI further alleged that under the terms of Neokred's agreements, it was contractually bound to verify merchant legitimacy and ensure that transactions occurred only through declared websites. Instead, transaction data showed funds consistently originating from gaming platforms rather than any legitimate merchant activity.
The agency invoked cognisable and non-bailable provisions of the CGST Act, citing potential punishment of up to five years in prison along with financial penalties.
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