ED Arrests Influencer-Entrepreneur Sandeepa Virk in Money Laundering Probe Linked to Fake Beauty Brand
The Enforcement Directorate (ED) has arrested Instagram influencer and entrepreneur Sandeepa Virk—who boasts over 1.2 million followers and is the founder of beauty label HybooCare—in connection with an alleged multi-crore money laundering operation.
Virk was taken into custody on August 12 under provisions of the Prevention of Money Laundering Act (PMLA), 2002. She was produced before a court the same day and remanded to ED custody until August 14.
Raids in Two Cities
Over August 12–13, multiple ED teams carried out coordinated search operations in both Delhi and Mumbai. According to the agency, the raids targeted Virk and her associates, who are accused of misrepresentation, undue influence, and defrauding individuals by seeking investments and payments under false pretences.
“Incriminating documents” were reportedly seized, and statements from several persons linked to Virk were recorded during the operation.
Fake Beauty Brand Allegations
The ED’s investigation stems from an FIR filed by the Punjab Police, which alleged that Virk amassed assets and purchased immovable property through deceptive schemes.
Central to the probe is hyboocare.com, the official website of her beauty brand, which allegedly marketed itself as a seller of FDA-approved beauty products. According to the ED, these products were “non-existent.”
The agency described the portal as a front for laundering funds, pointing to red flags such as:
- No user registration process
- Persistent payment gateway failures
- Extremely low social media engagement despite a large personal following
- Inactive WhatsApp business contact
- No transparent information about the company’s structure or leadership
High-Profile Connection Under Scrutiny
The ED has also claimed that Virk maintained regular contact with Angarai Natarajan Sethuraman, former director of the now-defunct Reliance Capital. Searches at his residence allegedly revealed documents and evidence of “illegal liaison work”, alongside financial irregularities involving loan disbursements.
Among the transactions flagged:
- ₹18 crore issued in breach of standard lending norms
- ₹22 crore home loan allegedly approved without due diligence
The ED says large portions of these funds were siphoned off for personal gain and remain unpaid.
Denial of Allegations
Sethuraman has categorically denied the charges, stating that the ₹22 crore loan was granted with proper collateral and in compliance with due process. He further claimed he has “no connection or involvement” with Virk or any of her activities.
The ED’s investigation is ongoing, with officials indicating that more arrests and seizures are likely as they piece together the financial trail.
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