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Hindustan Times
5 days ago
- Business
- Hindustan Times
ED arrests Sandeepa Virk, ‘cosmetologist' with 1.2M Instagram followers, in money laundering case
Sandeepa Virk, who claims to be an actor and a cosmetologist with over 1.2 million followers on Instagram, was arrested by the Enforcement Directorate under the anti-money laundering law in a case of alleged fraud and misrepresentation, the probe agency said on Wednesday. Sandeepa Virk on Instagram. The ED added that Sandeepa Virk's purported links with a Reliance Group executive, Angarai Natarajan Sethuraman (president, corporate affairs), are also under its scanner. Natarajan Sethuraman, in a statement, has denied any connection with the woman or any transactions related to her, news agency PTI reported. The ED took Virk into its custody under the Prevention of Money Laundering Act (PMLA) on Tuesday after searches were conducted against her and her associates in Delhi and Mumbai over the last two days. The woman has been sent to the ED's custody till August 14 by a special court in Delhi. Who is Sandeepa Virk and what are allegations her? Sandeepa Virk claims to be the owner of a skin care products selling website named which the ED claimed was a 'front' for money laundering. According to an Instagram ID of Virk, she is an actor and entrepreneur and the founder of the said website. Another social media-hosted bio data of the woman said she is a certified cosmetologist. Virk and her associates are being investigated for allegedly exerting undue influence through 'misrepresentation' and 'defrauding' individuals by soliciting money under false pretences. In a statement, the ED said she was also "in touch with" Natarajan Sethuraman, former director of erstwhile Reliance Capital Limited. Virk was allegedly communicating with him regarding 'illegal liaisoning'. The ED claimed that the searches at Sethuraman's residence 'confirmed' these allegations. "Besides, diversion of funds for personal benefit has also been unearthed during the course of the search action," it said. The ED alleged that public money worth about ₹ 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms. The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said. 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms. The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said. The ED claimed that besides this, a home loan of ₹ 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms. "A large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged. 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms. "A large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged. Sethuraman also issued a statement, dismissing the allegations as 'baseless'. He denied any connection with Virk or any transactions related to her. Sethuraman said that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral. What ED said about According to the ED, it purportedly sold FDA-approved beauty products. However, the products listed on the website have been found to be non-existent, and the portal lacks a user registration option and is plagued by persistent payment gateway issues. A scrutiny of the website, uncovered minimal social-media engagement, an inactive WhatsApp contact number and an absence of transparent organisational details, all of which reinforce the finding of "non-genuine" commercial activity, the ED claimed. The ED said several "incriminating" documents were seized during the searches, and the statement of a man named Farrukh Ali, stated to be an associate of Virk, was recorded. The money-laundering case stems from an FIR lodged by the Punjab Police. (With inputs from PTI)
NDTV
5 days ago
- Business
- NDTV
Influencer With 1.2 Million Instagram Followers Arrested In Rs 40-Crore Laundering Case
New Delhi: 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 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.
