Directorate of Enforcement: On 13-08-2025, a press release issued by the Directorate of Enforcement (ED) stated that search operations had been conducted at multiple locations in Delhi and Mumbai under the Prevention of Money Laundering Act, 2002, (PMLA), as part of the ongoing investigation into Instagram influencer, Sandeepa Virk, and her associates, who allegedly exerted undue influence through misrepresentation and defrauded individuals by soliciting money under false pretences.
Background
The ED initiated an investigation based on an FIR registered in Punjab under Sections 406 and 420 of the Penal Code, 1860.
Investigation so far
As per the ED, the investigation revealed that Sandeepa had acquired immovable property in her name by making false promises and cheating. She claimed to be the owner of ‘hyboocare.com’, a website purportedly selling FDA-approved beauty products. However, the products listed on the site were found to be non-existent. Furthermore, the website lacked a user registration option and was plagued by persistent payment gateway issues. Scrutiny of the website uncovered minimal social media engagement, an inactive WhatsApp contact number, and the absence of transparent organizational details, all of which reinforced the finding of non-genuine commercial activity.
The ED stated that these factors, including limited product range, inflated pricing, false claims of FDA approval, and technical inconsistencies, indicated that the website served as a front for laundering funds.
Furthermore, the ED stated that Sandeepa was regularly in touch with Angarai Natarajan Sethuraman, former Director of erstwhile Reliance Capital Limited (‘RCL’). As per the ED, she had been communicating regarding illegal liaison work. A search at Sethuraman’s residence confirmed the same, and diversion of funds for personal benefit was also discovered during the search.
The ED further stated that in 2018, public funds worth approximately Rs 18 Crores belonging to Reliance Commercial Finance Ltd were disbursed to Sethuraman by flouting prudent lending norms. The funds were lent under terms that allowed deferment of principal as well as interest, granted multiple waivers, and without any due diligence. Additionally, a home loan of Rs 22 Crore was provided by RCL in violation of the prudential norms. A large part of these loans was eventually siphoned off and remained unpaid.
During the search operation, several incriminating documents and records were seized, and statements of key persons and associates, including Farrukh Ali, were recorded.
Lastly, the ED stated that after Sandeepa’s arrest on 12-08-2025 and her production before the Competent Court, the ED had been granted her custody till 14-08-2025 for further investigation.
Source: ED Press Release
