ED arrests social media influencer Sandeepa Virk under PMLA in a Rs 40 crore money laundering case involving a fraudulent skincare brand, fake business facade, and alleged fund diversion.
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NEW DELHI: The Enforcement Directorate (ED) has arrested social media influencer Sandeepa Virk, who has over 1.2 million Instagram followers, in connection with a high-profile money laundering investigation.
Virk was taken into custody on 12 August 2025 under the Prevention of Money Laundering Act, 2002 (PMLA) and has been remanded to ED custody till 14 August.
Delhi’s Tis Hazari court has remanded the influencer to judicial custody till September 1, 2025, following her arrest by the Enforcement Directorate (ED) on August 12 under the PMLA, 2002.
Virk projected herself as the founder of HyBooCare, an online platform claiming to offer FDA-approved beauty and skincare products. However, ED officials allege that the website was merely a front with no genuine products, non-functional payment systems, and inactive support lines. According to investigators, HyBooCare was used to channel illicit funds under the guise of legitimate business transactions.
Case Origin: Punjab Police FIR
The money laundering probe arose from a predicate offence filed by the Punjab Police under Sections 420 (cheating) and 406 (criminal breach of trust) of the Indian Penal Code (IPC). Acting on this FIR, the ED launched its independent investigation under the PMLA.
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During interrogation, ED uncovered that Virk had acquired immovable property through misrepresentation and maintained regular dealings with Angarai Natarajan Sethuraman, a former director of the now-defunct Reliance Capital. Searches at Sethuraman’s residence allegedly revealed evidence of fund diversion and irregular lending practices.
In 2018, loans worth over Rs 40 crore were reportedly disbursed under questionable terms, including a Rs 18 crore disbursement from Reliance Commercial Finance Ltd and a Rs 22 crore home loan from Reliance Capital that the ED claims violated prudential norms. Substantial portions of these loans remain unpaid, raising suspicions that the funds were laundered through associates linked to Virk.
The ED stated that it has seized crucial documents suggesting layering of funds and recorded statements from individuals associated with the financial transactions. The evidence is said to point towards a larger network of fund diversion and laundering operations.
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Meanwhile, Sethuraman has denied all allegations, claiming that the loans were disbursed only after due diligence and were backed by collateral. He has also rejected any association with Virk, insisting that the transactions were legitimate and in compliance with financial regulations.
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