New Delhi, Aug 13 (PTI) The Enforcement Directorate (ED) on Wednesday said it has arrested a woman, who claims to be an actor and a cosmetologist, under the anti-money laundering law in a case of fraud and misrepresentation.

Sandeepa Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) on Tuesday after searches were conducted against her and her associates in Delhi and Mumbai over the last two days.

A special court sent her to the ED's custody till August 14, the agency said.

The woman claims to be the owner of a skin care products selling website named hyboocare.com, which the ED claimed was a "front" for money laundering.

She and her associates are being probed for allegedly exerting undue influence through "misrepresentation" and "defrauding" individuals by soliciting money under false pretences.

According to an Instagram ID of Virk, she is an actor and entrepreneur and the founder of the said website.

The federal agency said in a statement that the woman was also "in touch with" a man named Angarai Natarajan Sethuraman, former director of erstwhile Reliance Capital Limited.

She was communicating with him regarding "illegal liaisoning", the ED claimed, adding that the searches at Sethuraman's residence "confirmed" these allegations.

"Besides, diversion of funds for personal benefit has also been unearthed during the course of the search action," it said.

According to the ED, public money worth about Rs 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms.

The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said.

The ED claimed that besides this, a home loan of Rs 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms.

"Large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged.

Detailing about Virk's web portal, the agency said it purportedly sold FDA-approved beauty products.

However, it said the products listed on the website have been found to be non-existent and the portal lacks a user registration option and is plagued by persistent payment gateway issues.

A scrutiny of the website uncovered minimal social-media engagement, an inactive WhatsApp contact number and an absence of transparent organisational details, all of which reinforce the finding of "non-genuine" commercial activity, the ED claimed.

"These factors, including limited product range, inflated pricing, false claims of FDA approval and technical inconsistencies, indicate that the website serves as a front for laundering funds," it said.

Another social media-hosted bio data of the woman said she is a certified cosmetologist.

The ED said several "incriminating" documents were seized during the searches and the statement of a man named Farrukh Ali, stated to be an associate of Virk, was recorded.

The money-laundering case stems from an FIR lodged by the Punjab Police.

Sethuraman, in a statement, dismissed the allegations as "baseless".

He firmly denied any connection with Virk or any transactions related to her.

Sethuraman clarified that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral. PTI NES RC

Money laundering allegations tied to a cosmetics portal prompt PMLA arrest and probe into alleged diversion and misrepresentation. Allegations under the Prevention of Money Laundering Act concern a skincare e commerce portal alleged to be a front for laundering, with searches and seizures revealing false regulatory claims, poor commercial indicators, and payment anomalies. Concurrently, probes allege diversion of loan funds obtained on imprudent terms without due diligence, prompting custodial detention of a person linked to the portal and investigative action at a director's residence where communications and incriminating documents were reportedly found.