Instagram Star With 1.2M Followers Arrested Over ₹40 Crore Money Laundering Case

Influencer and Actor Sandeepa Virk Arrested in ₹40-Crore Money Laundering Case.

An entrepreneur and actor with over 1.2 million Instagram followers, Sandeepa Virk, was arrested by the Enforcement Directorate (ED) in connection with a ₹40-crore money laundering case.

The case originates from an FIR filed in Mohali under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code. Virk is accused of defrauding individuals by soliciting money under false pretences and misrepresentation.

The ED conducted searches across multiple locations in Delhi and Mumbai, alleging that Virk acquired immovable properties through fraudulent means. She had promoted herself as the owner of hyboocare.com, a website claiming to sell FDA-approved beauty products. Investigators, however, found the website largely non-functional, with no real products, inactive contact numbers, negligible social media presence, and no transparent company details, suggesting it was used as a front for laundering funds.

The probe also uncovered her alleged links with Angarai Natarajan Sethuraman, a former director of the now-defunct Reliance Capital Limited. Searches at Sethuraman’s residence reportedly confirmed his involvement in diversion of funds. The ED alleges that in 2018, around ₹18 crore from Reliance Commercial Finance Ltd (RCFL) were disbursed to Sethuraman under irregular lending terms, and a ₹22-crore home loan was sanctioned in violation of norms, with significant portions of the funds siphoned off and unpaid. Sethuraman has denied all allegations, calling them “baseless.”

During the raids, the ED seized documents and recorded statements from key individuals, including Farrukh Ali. Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) on August 12 and sent to ED custody until Friday. Officials confirmed that investigations into potential involvement of other individuals are ongoing.