'Fake' beauty brand and Rs 40-crore case: Instagram star with 1.2 million followers in ED custody over money laundering probe
Sandeepa Virk
, has been arrested by the
Enforcement Directorate
(ED) in connection with a Rs 40-crore
money laundering
case, PTI reported.
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The case stems from a first information report (FIR) lodged at a
Mohali police
station under Sections 406 (
criminal breach of trust
) and 420 (cheating) of the Indian Penal Code. Virk is accused of defrauding individuals by soliciting funds under false pretences and misrepresentation.
The ED carried out search operations on Tuesday and Wednesday at multiple locations in Delhi and Mumbai in connection with the case under the
Prevention of Money Laundering Act
(PMLA), 2002.
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According to the ED, Virk allegedly acquired immovable properties through fraudulent means. She promoted herself as the owner of hyboocare.com, a website claiming to sell
FDA-approved beauty products
. Investigators found that the products did not exist, the website lacked user registration features, faced persistent payment gateway failures, and had negligible social media engagement.
Furthermore, its WhatsApp contact number was inactive, and no transparent company details were available, suggesting a non-genuine commercial operation allegedly used as a front for laundering funds.
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The ED's probe also revealed Virk's alleged links with Angarai Natarajan Sethuraman, a former director of the now-defunct
Reliance Capital Limited
. Searches at Sethuraman's residence allegedly confirmed involvement in 'illegal liaising work' and diversion of funds for personal gain.
Investigators said that in 2018, public funds worth approximately Rs 18 crore from
Reliance Commercial Finance Ltd
(RCFL) were disbursed to Sethuraman without due diligence and under 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. Large portions of these funds were reportedly siphoned off and remain unpaid.
In a statement to PTI, Sethuraman denied the allegations, calling them 'baseless,' and refuted any connection with 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. Virk was arrested on 12 August under provisions of the PMLA and produced before a court, which sent her to ED custody until Friday.
ED officials stated that the potential involvement of other individuals is also under investigation.
Inputs from PTI
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