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.