Last Update: March 11, 2023, 15:29 IST
Opposing the ED’s plea, Arnaha’s lawyer said the arrest was illegal as proper norms were not followed by the probe agency (Representational Image)
Vinay Aranha of Rosary Education Group, a charitable trust that runs the school, was arrested by the central probe agency on March 9 in an alleged loan fraud case.
An academician arrested in a money laundering case obtained loans from banks to renovate his schools but spent it on a lavish lifestyle, buying high-end cars, and hosting events involving Bollywood celebrities, the Enforcement Directorate told a special court here on Friday.
Mala’s Vinay Aranha Education The group, a charitable trust that runs the school, was arrested by the central probe agency on March 9 in an alleged loan fraud case.
He was produced before Special PMLA Judge MG Deshpande, who remanded him in ED custody till March 20.
According to the ED, Aranha is the secretary of the trust and all other trustees are his relatives. The accused controls and is the beneficial owner of all the entities in his family.
The Rosary Education Group had obtained a loan of around Rs 20 crore from Cosmos Bank between 2015 and 2016, which is basically public money, for renovation of a school, but the accused siphoned off several more crores for their personal enrichment. Embezzled a huge amount of Rs. ED said, lead a lavish lifestyle.
“Investigation has revealed that he is leading a lavish and high-flying lifestyle. He has hosted many programs involving Bollywood celebrities. He has recklessly spent money meant for the educational purpose of his schools. He has also bought several high-end luxury cars worth crores of rupees,” the ED told the court.
The ED said that the accused had not prepared any books of account for the last 8-10 years for Rosary Group entities to hide their financial position.
Seeking his remand, the central probe agency said a thorough probe needs to be conducted regarding Aranha’s income and expenditure as well as diversion of funds.
Opposing the ED’s plea, Arnaha’s counsel said the arrest was illegal as proper procedures were not followed by the probe agency.
The court said in its order, ‘There is no illegality in arresting the accused. I am satisfied that till the custody of ED is not given, the investigation will not take final shape. The judge said that rejecting the ED’s plea for remand would paralyze and frustrate the investigation, which would ultimately defeat the very purpose of the Prevention of Money Laundering Act.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)