Sandeepa Virk, an Instagram influencer and aspiring actor boasting over 1.2 million followers, was arrested by the Enforcement Directorate (ED) on August 12 in connection with a suspected INR 40 crore money-laundering case. The case originates from a Mohali FIR filed under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code.
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Web of Deceit: Fake Brand, False Promises
Virk promoted hyboocare.com, purportedly an e-commerce site offering FDA-approved beauty products. But investigators flagged several red flags—the products were nonexistent, the website lacked essential features like user registration, payment gateways were nonfunctional, social media engagement was minimal, and company details were missing. In effect, the site appeared to be a façade for laundering funds.
Proceeds of the scheme were allegedly used to acquire immovable properties, further drawing the ED’s scrutiny. As per the investigators, the site was more of a front than a legitimate commercial venture.
Deep Ties to a Reliance Capital Scandal
The ED’s investigation deepened when it revealed Virk’s alleged links to Angarai Natarajan Sethuraman, a former director at the now-defunct Reliance Capital Limited. Searches led to the discovery of suspicious communications and evidence of fund diversion. In 2018, public funds worth INR 18 crore were issued to Sethuraman’s Reliance Commercial Finance Ltd division under questionable terms—without due diligence and with undue loan waivers. Moreover, an unauthorised INR 22 crore home loan was sanctioned in violation of lending norms. A significant portion of these funds remains unpaid.
Sethuraman has denied any involvement with Virk or the transactions, calling the charges “baseless.”
ED Probe Widens—the Hunt Continues
The ED carried out searches across Delhi and Mumbai, seizing documents and recording statements from key individuals, including one Farrukh Ali. Virk was brought before a special PMLA court and remanded to ED custody until August 14. Authorities suspect the involvement of additional parties and are pursuing a wider money-laundering network through shell firms.
