‘Instead of school, trustee spent money on lifestyle’

As per the ED, Aranha is the secretary of the trust and all the other trustees are his kin

‘Instead of school, trustee spent money on lifestyle’

Vinay Aranha

An educationist arrested in a money laundering case obtained loans from banks for the renovation of his schools, but ended up spending it on a luxurious lifestyle, purchasing high-end cars and hosting events involving Bollywood celebrities, the Enforcement Directorate told a special court in Mumbai on Friday.

Vinay Aranha of the Rosary Education Group, a charitable trust that runs schools, was arrested by the Central probe agency on March 9 in an alleged loan fraud case. He was produced before Special PMLA Judge M G Deshpande, who remanded him in ED custody till March 20. As per the ED, Aranha is the secretary of the trust and all the other trustees are his kin. The accused controls and is the beneficial owner of all the entities of his family.

Also Read: PMLA: Educationist took bank loans for schools, spent it on luxurious lifestyle, events with film stars, says ED

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 renovating a school, but the accused siphoned off vast amounts to the tune of several crores for his personal enrichment and to lead a lavish lifestyle, the ED said.

“Investigation has revealed he has been leading a luxurious and highflying lifestyle. He has hosted several 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 crores of rupees,” the ED told court. No books of accounts have been prepared for Rosary Group entities for the past 8-10 years by the accused in order to conceal their financial status, the ED said.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

"Exciting news! Mid-day is now on WhatsApp Channels