Sandeepa Virk, a 32-year-old Instagram influencer with over 1.2 million followers, was arrested by the Enforcement Directorate (ED) on August 12 in a high-profile ₹40-crore money laundering case. Virk, who describes herself as an actor, entrepreneur, and certified cosmetologist, faces allegations of defrauding individuals through a fake beauty brand, HybooCare, and laundering funds linked to questionable financial dealings with a former Reliance Capital director. The arrest, made under the Prevention of Money Laundering Act (PMLA), 2002, follows coordinated ED raids in Delhi and Mumbai on August 12 and 13.

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The case originated from a Punjab Police FIR filed in Mohali, accusing Virk of criminal breach of trust and cheating under Sections 406 and 420 of the Indian Penal Code. The ED alleges that Virk misrepresented herself as the owner of hyboocare.com, a website claiming to sell FDA-approved beauty products. Investigations revealed the site was a sham: its products were non-existent, it lacked user registration, had persistent payment gateway failures, minimal social media engagement, and an inactive WhatsApp contact, all pointing to a front for laundering illicit funds.

Further scrutiny uncovered Virk’s alleged ties to Angarai Natarajan Sethuraman, former director of the now-defunct Reliance Capital Limited. The ED claims that in 2018, Sethuraman received ₹18 crore from Reliance Commercial Finance Ltd (RCFL) under irregular lending terms, with deferred payments and multiple waivers granted without due diligence. Additionally, a ₹22-crore home loan from Reliance Capital allegedly violated prudential norms, with large portions of these funds siphoned off and unpaid. Searches at Sethuraman’s residence reportedly confirmed “illegal liaisoning” with Virk, including fund diversion for personal gain. Sethuraman, however, denied any connection to Virk, calling the allegations “baseless” and asserting that his home loan was secured with proper collateral.

During the raids, the ED seized incriminating documents and recorded statements from associates, including Farrukh Ali, as the probe expands to uncover other potential accomplices. Virk, who also appeared in a Punjabi film, Gun & Goal, and has a background in theater and modeling, was remanded to ED custody until August 14 for further questioning. Her lavish lifestyle, showcased to her massive social media following, is now under scrutiny as investigators probe whether it was funded by illicit gains.

The case has sparked discussions on X about the accountability of influencers and the misuse of social media platforms for financial fraud. As the investigation unfolds, it raises broader questions about regulatory oversight in influencer-driven businesses and corporate lending practices in India’s financial sector.

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