Influencer With 1.2 Million Instagram Followers Arrested In Rs 40-Crore Laundering Case

An 'entrepreneur' with over 1.2 million followers on Instagram, whose bio also states that she is an actor, has been arrested by the Enforcement Directorate in connection with a Rs 40-crore money laundering case.

The case against Sandeepa Virk stems from a first information report (FIR) lodged at a police station in Mohali under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code, in which she was accused of defrauding individuals by soliciting money under false pretences and through misrepresentation.

The Enforcement Directorate (ED) carried out search operations on Tuesday and Wednesday at multiple locations in Delhi and Mumbai in connection with the money laundering case under the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, Ms Virk is accused of acquiring immovable properties through fraudulent means. She projected herself as the owner of hyboocare.com, a website claiming to sell FDA-approved beauty products. However, investigators found that the products were non-existent, the website lacked user registration features, faced persistent payment gateway failures, and had negligible social media presence.

Additionally, its WhatsApp contact number was inactive, and no transparent company details were available - pointing to a non-genuine commercial operation allegedly used as a front to launder funds.

The ED's probe also revealed Ms 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 role in "illegal liaising work" and diversion of funds for personal gain.

The agency said 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. In addition, 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 news agency PTI, Mr Sethuraman dismissed the allegations as "baseless". He also denied any connection with Ms Virk or any transactions related to her.

During the raids, the ED seized incriminating documents and recorded statements of several key individuals, including one Farrukh Ali. Ms Virk was arrested on August 12 under provisions of the PMLA and produced before a court, which sent her to ED custody until Friday.

ED officials said the potential involvement of other individuals is also being investigated.