Man took loan for schools, spent it on events with film stars: Enforcement Directorate

Mumbai:

An educationist 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 has alleged in Mumbai. I told a special court. Friday.

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.

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 family members. The accused controls and is the beneficial owner of all the entities in his family.

The Rosary Education Group had obtained a loan of about Rs 20 crore from Cosmos Bank between 2015 and 2016, which is basically public money, for renovation of a school, but the accused diverted huge amounts of several crores for their personal enrichment. embezzled the amount and led a lavish lifestyle, the ED said.

“Investigation has revealed that he is leading a luxurious and high-end lifestyle. He has hosted many events involving Bollywood celebrities. He has recklessly spent funds which were meant for the educational purpose of his schools. He has Also purchased several high-end luxury cars worth Rs.10 crore,” 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 Mr Aranha needs to be thoroughly probed regarding his income and expenditure as well as diversion of funds.

Opposing the ED’s plea, Aranha’s counsel said the arrest was illegal as proper norms were not followed by the probe agency.

“There is no illegality in the arrest of the accused. I am satisfied that unless the ED’s custody is granted, the investigation will not take final shape,” the court said in its order. 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.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)