ED Arrests Influencer Sandeepa Virk In ₹40-Crore Fraud, Links Former Reliance Capital Director

Mumbai: The Enforcement Directorate (ED) has arrested social media influencer Sandeepa Virk in connection with an alleged money laundering and fraud scheme involving fake online sales and the suspected illegal diversion of funds linked to a former director of Reliance Capital Limited.

The arrest follows ED search operations on 12th and 13th August 2025 at multiple locations in Mumbai and Delhi under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The probe was initiated after the Punjab police registered a complaint alleging cheating and criminal breach of trust.

ED investigators allege that Virk acquired property using funds obtained through “false promises and cheating” and operated a website, hyboocare.com, which claimed to sell FDA-approved beauty products. However, the products listed were found to be non-existent. The site displayed minimal social media activity, persistent payment gateway issues, no user registration option, an inactive WhatsApp contact, and no transparent organizational details,indicating non-genuine commercial activity. Investigators stated that the limited product range, inflated pricing, false claims of FDA approval, and technical inconsistencies suggest that the website served as a front for laundering funds.

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The probe further revealed that Virk was in regular contact with Angarai Natarajan Sethuraman, former director of erstwhile Reliance Capital Limited. According to the ED,the interactions pertained to alleged illegal liaison work Searches at Sethuraman’s residence reportedly confirmed the diversion of funds for personal benefit. the anti-money laundering agency said.

ED further alleged that in 2018, Reliance Commercial Financial Capital disbursed around Rs 18 crore to Sethuraman in violation of prudent lending norms. These loans carried deferment clauses, multiple waivers, and were sanctioned without proper due diligence. Additionally, a Rs 22-crore home loan was granted, by Reliance Capital Limited, a large portion of which was either siphoned off or remained unpaid.

Refuting the allegations, Sethuraman said, “These allegations are entirely baseless.” He firmly denied any connection or involvement with Sandeepa Virk or any transactions related to her. He also clarified that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral.

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During the searches, several documents and records were seized, and statements of key associates, including Farrukh Ali, were recorded. Virk, arrested on 12th August, was presented in court, which granted ED custody until 14th August