Fake beauty products site, Rs 40 cr loan fraud: ED arrests woman, probes ex Reliance Capital official

The Enforcement Directorate (ED) on Wednesday said it has arrested a woman in connection with an alleged money laundering and fraud scheme involving fake online sales and suspected illegal fund diversion linked to a former director of Reliance Capital Limited. 

The arrest of Sandeepa Virk followed search operations on August 12 and 13 in Delhi and Mumbai under the Prevention of Money Laundering Act, the agency said in a statement. The probe began after police in Punjab registered a complaint of cheating and criminal breach of trust.

ED investigators allege Virk acquired property using funds obtained by making “false promises and cheating” and operated a website, hyboocare.com, claiming to sell FDA-approved beauty products that did not exist. The site showed minimal social media activity, persistent payment gateway issues, and no user registration option, the agency said, calling it a front to launder funds.

The investigation also found Virk in contact with Angarai Natarajan Sethuraman, a former director of the now-defunct Reliance Capital Limited, regarding “illegal liaising work”, ED said. Searches at Sethuraman’s residence allegedly revealed diversion of funds for personal use.

In 2018, about Rs 18 crore of public money from Reliance Commercial Finance Ltd was disbursed to Sethuraman in violation of lending norms, the agency said. A separate home loan of Rs 22 crore from Reliance Capital was also allegedly provided without due diligence. Much of the borrowed funds were “eventually siphoned off and remained unpaid,” ED said.

Incriminating documents were seized and statements from key associates, including Farrukh Ali, were recorded, the statement added.

Virk, arrested on Aug. 12, was presented in court, which granted ED custody until Aug. 14.