The Enforcement Directorate (ED) arrested Sandeepa Virk on August 12 in connection with a money laundering and fraud case involving fake online sales and illegal fund diversion linked to a former Reliance Capital Limited director.
Following raids in Delhi and Mumbai on August 12-13 under the Prevention of Money Laundering Act, the ED uncovered that Virk ran hyboocare.com, a website claiming to sell FDA-approved beauty products that were nonexistent. The site had minimal social media presence, frequent payment gateway issues, and lacked user registration, indicating it was a front to launder money.
Investigators also found Virk liaising with Angarai Natarajan Sethuraman, a former director at the now-defunct Reliance Capital Limited, regarding illicit financial dealings. Documents seized during searches at Sethuraman’s residence revealed a diversion of public funds for personal gain.
In 2018, Rs 18 crore from Reliance Commercial Finance Ltd was disbursed to Sethuraman in violation of lending norms, and an additional Rs 22 crore home loan was issued without due diligence. Much of this money was allegedly siphoned off and remains unpaid.
The probe continues with statements from key associates, including Farrukh Ali, being recorded. Virk is in ED custody until August 14 following a court appearance.
