Influencer Sandeepa Virk Arrested by ED in ₹40-Crore Money Laundering Case

The Enforcement Directorate has arrested social media influencer Sandeepa Virk, who boasts over 1.2 million followers, in connection with a ₹40-crore money laundering investigation. The ED action, based on a Punjab Police FIR, included coordinated raids in Delhi and Mumbai and has drawn attention to alleged financial misconduct linked to a purported beauty-products venture. This case sheds light on the risks of online fame and the legal scrutiny high-profile individuals can face.

Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) following raids on August 12 and 13 at her residences and those of her associates in Delhi and Mumbai. She was produced before a special court and remanded to ED custody until August 14 for further questioning. The agency seized documents and initiated statements from key witnesses, including an associate known as Farrukh Ali. ED officials cite extensive evidence suggesting Virk misrepresented her business operations to solicit funds under false pretences.

At the centre of the probe is Virk’s skincare website, HybooCare.com, which claimed to sell FDA-approved beauty products. Investigators describe it as a shell operation: there was no real inventory, payment gateways were dysfunctional, customer registrations were missing, and social engagement was negligible. The ED says these signs point to the platform being a cover for laundering money, with its public profile serving as a front for illicit financial flows.

The probe also suggests links between Virk and Angarai Natarajan Sethuraman, a former director of Reliance Capital who now heads corporate affairs at Reliance Group. The ED alleges collaborative “illegal liaison work” and diversion of around ₹18 crore, along with suspicious approvals of a ₹22-crore home loan from public funds. Sethuraman has denied all allegations, calling the claims baseless and insisting the loans complied with formal procedures and proper collateral norms.

While the individuals involved are based in major cities, the implications touch Tier 2 and Tier 3 communities too. With rising trends in online entrepreneurship, aspiring influencers from towns like Nagpur, Jaipur or Coimbatore may face heightened risks if due diligence and legal compliance aren’t prioritised from the outset. This arrest sends a clear signal: substantial social media following does not shield one from financial scrutiny and criminal liability.

The case raises questions about the regulatory oversight of influencer-driven businesses. Can social platforms be leveraged as legitimate commercial ventures, or are they sometimes mere facades that obscure financial misdeeds? Virk’s arrest may prompt greater scrutiny across the digital influencer landscape, encouraging both creators and consumers to demand transparency.

The ED’s arrest of Sandeepa Virk highlights the intersection of social reach and financial oversight. For influencers and digital entrepreneurs across India, this is a cautionary tale: popularity must be backed by legitimate business models and legal rigor. The unfolding investigation will reveal how deep these alleged money trails run and whether India’s legal mechanisms are keeping pace with its booming creator economy