ED arrests influencer Sandeepa Virk in Rs 40 crore laundering case

New Delhi: A social media influencer with over 1.2 million Instagram followers, Sandeepa Virk, has been arrested by the Enforcement Directorate (ED) in connection with a Rs 40-crore money laundering case, as per the NDTV report.

The FIR against Virk was lodged at a police station in Mohali under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code. She is accused of defrauding individuals by soliciting money under false pretences and misrepresentation.

The ED conducted search operations on Tuesday and Wednesday across multiple locations in Delhi and Mumbai in connection with the money laundering investigation under the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, Virk allegedly acquired immovable properties through fraudulent means. She had projected herself as the owner of hyboocare.com, a website claiming to sell FDA-approved beauty products. Investigators, however, found the products to be non-existent. The website reportedly lacked user registration features, experienced persistent payment gateway failures, had minimal social media presence, an inactive WhatsApp contact number, and no transparent company information, all suggesting it was a front to launder funds.

The probe also revealed Virk’s alleged links with Angarai Natarajan Sethuraman, a former director of the now-defunct Reliance Capital Limited. Search operations at Mr Sethuraman’s residence allegedly confirmed his involvement in "illegal liaising work" and the diversion of funds for personal gain.

NDTV reported that, in 2018, public funds worth approximately Rs 18 crore from Reliance Commercial Finance Ltd (RCFL) were disbursed to Mr Sethuraman without due diligence and under highly irregular lending terms that allowed deferments and multiple waivers. Additionally, a Rs 22-crore home loan was allegedly sanctioned by Reliance Capital Limited in violation of prudential norms. Investigators said large portions of these funds were siphoned off and remain unpaid.

In a statement to PTI, Sethuraman dismissed the allegations as "baseless". He also denied any connection with Virk or any transactions related to her.

During the raids, the ED reportedly seized incriminating documents and recorded statements from several key individuals, including Farrukh Ali. Virk was arrested on August 12, under the provisions of the PMLA and was produced before a court, which sent her to ED custody until Friday. The ED is also investigating the potential involvement of other individuals in the case.