ED Files Charges Against Sandeepa Virk in Money Laundering Probe

The Enforcement Directorate (ED) has filed a prosecution complaint against Sandeepa Virk and proposed accused Amit Gupta in an ongoing money laundering case. Virk was arrested on August 12 and remains in judicial custody. On October 13, Additional Sessions Judge Vijay Shankar issued a notice to the accused, taking the charge sheet into record.

The court has scheduled November 3 to consider the case's cognizance. Judge Shankar referred to section 223 of the Bhartiya Nagrik Surksha Sanhita, which mandates the accused be given the opportunity to be heard before cognizance is taken. Notice was issued to Amit Gupta to be heard before cognizance is considered on the prosecution complaint.

The ED, represented by special public prosecutor Simon Benjamin, filed the charges under sections 3 and 4 of the Prevention of Money Laundering Act (PMLA). ED's investigation, originating from a 2016 case in SAS Nagar, Mohali, revealed wrongdoing fitting PMLA's scheduled offences. Evidence implicates the accused in fraudulent activities and laundering money through a misleading website.

Search operations on August 12 and 13 uncovered coercive tactics and misrepresentation by Virk and her associates. The ED contends that Virk's ostensible beauty product site served as a front for laundering operations. Key issues included payment gateway problems and non-existent products. Communication with former Reliance Capital director Angarai Natarajan Sethuraman pointed to improper fund diversion.

Investigations highlighted that Rs 18 crore was improperly disbursed by Reliance Commercial Finance, facilitated by Sethuraman under deficient lending standards. Furthermore, a Rs 22 crore home loan from Reliance Capital breached prudential norms. A significant portion of these funds was siphoned off, raising ED's suspicions of malpractice.

The ED's search operations resulted in the seizure of incriminating documents and recordings of crucial testimonies, including from associate Farrukh Ali. Sandeepa Virk's arrest on August 12 marked the intensification of the ED's inquiries. She was subsequently presented in Tis Hazari Court, which granted ED custody till August 14 for further investigation.

On August 14, Angarai Sethuraman denounced ED's allegations as unfounded. He declared no involvement with Virk or any relevant transactions, asserting proper processes governed his loan from Reliance Capital. He emphasized that the loan was secured with appropriate collateral. (ANI)