New Delhi [India], August 13 : The Enforcement Directorate (ED) has arrested Instagram influencer Sandeepa Virk, owner of the website hyboocare.com, which claimed to sell FDA-approved beauty products, in connection with a money laundering case.
The arrest was made on August 12 during searches conducted across multiple locations in Delhi and Mumbai under the Prevention of Money Laundering Act (PMLA), 2002.
Virk, who is also an Instagram influencer with 1.2 million followers, was produced before the competent court the same day. The court has granted ED her custody till August 14 for further interrogation.
https://x.com/dir_ed/status/1955638417196277842
According to officials, the ongoing investigation pertains to allegations that Virk and her associates misrepresented facts, exerted undue influence, and defrauded individuals by soliciting money under false pretences.
The ED is examining the financial trail and potential involvement of other associates in the scheme.
The searches and arrests mark a significant development in the probe, which authorities say is aimed at uncovering the full extent of the alleged fraud and money laundering activities.
ED initiated an investigation based on a First Information Report (FIR) registered by Police Station Phase-8, SAS Nagar, Punjab, under various sections of the Indian Penal Code, 1860.
ED's investigation revealed that Virk has acquired immovable property in her name by making false promises and cheating. She claims to be the owner of hyboocare.com, a website purportedly selling FDA-approved beauty products.
However, the ED said, the products listed on the site have been found to be non-existent.
"The website lacks a user registration option and is plagued by persistent payment gateway issues. 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," said the agency.
According to the federal agency, several factors suggest that the website is a front for laundering funds, including a limited product range, inflated pricing, false claims of FDA approval, and technical inconsistencies.
"One person with whom Sandeepa Virk was in regular touch with Angarai Natarajan Sethuraman, former Director of erstwhile Reliance Capital Limited, with whom she had been communicating regarding illegal liaison work. Search at the residence of Sethuraman residence has confirmed the same," pointed the agency.
Besides, it further said, diversion of funds for personal benefit has also been unearthed during the course of the search action.
"In 2018, public money of approximately Rs 18 crore belonging to Reliance Commercial Finance Ltd (RCFL) was disbursed to Sethuraman by flouting prudent lending norms. The funds were lent under terms that allowed deferment of principal as well as interest, with multiple waivers granted and no due diligence conducted," said the ED in a statement.
"Besides, a home loan of Rs 22 crore was provided by Reliance Capital Limited by violating the prudential norms. A large part of these loans is seen to have been eventually siphoned off and remained unpaid," the ED later mentioned in the statement.
During the search operation, the agency also said, several incriminating documents and records were seized, and statements of key persons and associates, including Farrukh Ali, have been recorded.
Angarai Sethuraman clarified through a statement on the ED allegations that the agency's accusations are "entirely baseless". He firmly denied any connection or involvement with Virk or any transactions related to her.
Sethuraman clarified that "the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral."