Instagram Influencer With 1.2 Million Followers Arrested In Rs. 40-Crore Money Laundering Case

Instagram influencer Sandeepa Virk has been arrested by the Enforcement Directorate in a Rs. 40-crore money laundering case, with alleged links to a former Reliance Capital director.

Instagram Influencer Sandeepa Virk

Source : Instagram/ sandeepavirk

A social media personality with over 1.2 million Instagram followers has landed in the middle of a high-profile financial scandal. Sandeepa Virk, who describes herself as an entrepreneur and actor, was arrested by the Enforcement Directorate (ED) in connection with a ₹40-crore money laundering investigation.

FIR In Mohali Led To Investigation

The case began with a First Information Report (FIR) filed at a police station in Mohali under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code. Authorities allege that Virk duped multiple people by soliciting money through false promises and misleading claims.

Nationwide Raids In Delhi And Mumbai

Over two days, Tuesday and Wednesday, the ED carried out coordinated raids at several properties in Delhi and Mumbai. The searches were linked to violations under the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, Virk allegedly acquired real estate through fraudulent means. She promoted herself as the owner of hyboocare.com, a site claiming to sell FDA-approved beauty products. Investigators, however, say the products never existed. The website reportedly lacked basic features such as user registration, suffered repeated payment failures, had little to no online presence, and listed an inactive WhatsApp contact number.

Alleged Fake Business Front

The ED claims the website was nothing more than a facade, a non-functional commercial platform allegedly used to funnel illicit funds. No genuine company details could be verified, further raising suspicions about the operation’s legitimacy.

Links To Former Reliance Capital Director

The probe also uncovered alleged ties between Virk and Angarai Natarajan Sethuraman, a former director at the now-defunct Reliance Capital Limited. Raids on Sethuraman’s residence reportedly revealed evidence of “illegal liaisoning” and fund diversion for personal use.

Officials allege that in 2018, Sethuraman received around ₹18 crore from Reliance Commercial Finance Ltd (RCFL) under irregular lending conditions that allowed deferments and multiple waivers, all without proper due diligence. In addition, Reliance Capital Limited is accused of approving a ₹22-crore home loan in breach of standard financial norms. Investigators say significant amounts of these funds were siphoned off and remain unpaid.

Sethuraman, speaking to news agency PTI, dismissed the accusations as “baseless” and denied any professional or financial connection to Virk.

Seizures, Arrests, And Ongoing Probe

During the raids, ED teams seized incriminating documents and recorded statements from multiple individuals, including one Farrukh Ali. Virk was arrested on August 12 under PMLA provisions and produced before a court, which remanded her to ED custody until Friday.

Authorities say they are still looking into the possible involvement of other people connected to the case.