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.