​MN 68 Nalakapana Sutta: At Nalakapana 

Thus have i heard.

On one occasion the Blessed One was living in the Kosalan country at Nalakapana in the Palasa Grove. Now on that occasion many very well-known clansmen had gone forth out of faith from the home life into homelessness under the Blessed One - venerable Anuruddha, venerable Nandiya, venerable Kimbila, venerable Bhagu, venerable Kundadhana, venerable Revata, venerable Ananda, and other very well-known clansmen. And on that occasion the Blessed One was seated in the open surrounded by the Sangha of bhikkhus. Then, referring to those clansmen, he addressed the bhikkhus thus: "Bhikkhus, those clansmen who have gone forth out of faith from the home life into homelessness under me - do they delight in the holy life?" When this was said, those bhikkhus were silent. A second and a third time, referring to those clansmen, he addressed the bhikkhus. thus: "Bhikkhus, those clansmen who have gone forth out of faith from the home life into homelessness under me - do they delight in the holy life?" For a second and third time, those bhikkhus were silent.

Then the Blessed One considered thus: "Suppose I question those clansmen?" Then he addressed the venerable Anuruddha thus: "Anuruddha, do you all delight in the holy life?"
He replied: "Surely, venerable sir, we delight in the holy life."
Buddha: "Good, good, Anuruddha! It is proper for all you clansmen who have gone forth out of faith from the home life into homelessness to delight in the holy life. As you are still endowed with the blessing of youth, black-haired young men in the prime of life, you could have indulged in sensual pleasures, yet you have gone forth from the home life into homelessness. It is not because you have been driven by kings that you have gone forth from the home life into homelessness, or because you have been driven by thieves, or owing to debt, fear, or want of a livelihood. Rather, did you not go forth out of faith from the home life into homelessness after considering thus: 'I am a victim of birth, ageing, and death, of sorrow, lamentation, pain, grief, and despair; I am a victim of suffering, a prey to suffering. Surely an ending of this whole mass of suffering can be known'?"
Anuruddha:  "Yes, venerable sir." 

"What should be done, Anuruddha, by a clansman who has gone forth thus? While he still does not attain to the rapture and pleasure that are secluded from sensual pleasures and secluded from unwholesome states, or to something more peaceful than that, covetousness/ill will/ sloth and tupor/restlessness and remorse/doubt/discontent and weariness invade his mind and remains. That is so while he still does not attain to the rapture and pleasure that are secluded from sensual pleasures and secluded from unwholesome states, or to something more peaceful than that. When he attains to the rapture and pleasure that are secluded from sensual pleasures and secluded from unwholesome states, or to something more peaceful than that, covetousness does not invade his mind and remain, ill will... sloth and torpor...restlessness and remorse...doubt...discontent... weariness does not invade his mind and remain. That is so when he attains to the rapture and pleasure that are secluded from sensual pleasures and secluded from unwholesome states, or to something more peaceful than that."

"How then, Anuruddha, do you all think of me in this way: 'The Tathagata has not abandoned the taints that defile, bring renewal of being, give trouble, ripen in suffering, and lead to future birth, ageing, and death. That is why the Tathagata uses one thing after reflecting, endures another thing after reflecting, avoids another thing after reflecting, and removes another thing after reflecting'?"
Anuruddha: "No, venerable sir, we do not think of the Blessed One in that way. We think of the Blessed One in this way: 'The Tathagata has abandoned the taints that defile, bring renewal of being, give trouble, ripen in suffering, and lead to future birth, ageing, and death. That is why the Tathagata uses one thing after reflecting, endures another thing after reflecting, avoids another thing after reflecting, and removes another thing after reflecting." 

"Good, good, Anuruddha! The Tathagata has abandoned the taints that defile, bring renewal of being, ripen in suffering, and lead to future birth, ageing, and death; he has cut them off at the root, done away with them so that they are no longer subject to future arising. Just as a palm tree whose crown is cut off is incapable of further growth, so too, the Tathagata has abandoned the taints that defile...cut them off at the root, done away with them so that they are no longer subject to future arising. "

"What do you think, Anuruddha? What purpose does the Tathagata see that when a disciple has died, he declares his reappearance thus: 'So-and-so has reappeared in such-and-such a place; so-and-so has reappeared in such-and-such a place '?"
Anuruddha: "Venerable sir, our teachings are rooted in the Blessed One, guided by the Blessed One, have the Blessed One as their resort. It would be good if the Blessed One would explain the meaning of these words. Having heard it from the Blessed One, the bhikkhus will remember it."

Buddha: "Anuruddha, it is not for the purpose of scheming to deceive people or for the purpose of flattering people or for the purpose of gain, honor, or renown, or with the thought, 'Let people know me to be thus,' that when a disciple has died, the Tathagata declares his reappearance thus: 'So-and-so has reappeared in such-and-such a place; so-and-so has reappeared in such-and-such a place.' Rather, it is because there are faithful clansmen inspired and gladdened by what is lofty, who when they hear that, direct their minds to such a state, and that leads to their welfare and happiness for a long time."

"Here a bhikkhu/bhikkhuni hears thus: 'The bhikkhu/bhikkhuni named so-and so has died; the Blessed One has declared of him: "He was established in final knowledge (Arahant).'" And he has either seen that venerable one for himself or heard it said of him: 'That venerable one's virtue was thus, his state of concentration was thus, his wisdom was thus, his abiding in attainments was thus, his deliverance was thus.' Recollecting his faith, virtue, learning, generosity, and wisdom, he directs his mind to such a state. In this way a bhikkhu has a comfortable abiding. "

​ "Here a bhikkhu/bhikkhuni hears thus: 'The bhikkhu/bhikkhuni named so-and so has died; the Blessed One has declared of him: "With the destruction of the five lower fetters he has reappeared spontaneously in the Pure Abodes and there will attain final Nibbana without ever returning from that world (Non-returner).'" And he has either seen that venerable one for himself.. .he directs his mind to such a state. In this way too a bhikkhu has a comfortable abiding."

"Here a bhikkhu/bhikkhuni hears thus: 'The bhikkhu/bhikkhuni named so-and so has died; the Blessed One has declared of him: "With the destruction of three fetters and with the attenuation of lust, hate, and delusion, he has become a once-returner, returning once to this world to make an end of suffering.'" And he has either seen that venerable one for himself... he directs his mind to such a state. In this way too a bhikkhu has a comfortable abiding."

"Here a bhikkhu hears thus: 'The bhikkhu named so-and so has died; the Blessed One has declared of him: "With the destruction of three fetters he has become a stream-enterer, no longer subject to perdition, bound for deliverance, headed for enlightenment.'" And he has either seen that venerable one for himself...he directs his mind to such a state. In this way too a bhikkhu has a comfortable abiding. "

Similarly for male lay follower, female lay follower ; they too can achieve the four stages of enlightenment (stream-enterer, once returner, non-returner and arahant) just like the bhikkhus and bhikkhunis who has abandoned the fetters. 

"So, Anuruddha, it is not for the purpose of scheming to deceive people or for the purpose of flattering people or for the purpose of gain, honor, and renown, or with the thought, 'Let people know me to be thus,' that when a disciple has died, the Tathagata declares his reappearance thus: 'So-and-so has reappeared in such-and-such a place; so-and-so has reappeared in such-and-such a place.' Rather, it is because there are faithful clansmen inspired and gladdened by what is lofty, who when they hear that, direct their minds to such a state, and that leads to their welfare and happiness for a long time." 

That is what the Blessed One said. The venerable Anuruddha was satisfied and delighted in the Blessed One's words. 

​In summary, this discourse was given at the Palāsavana in Nalakapāna. The Buddha asked the monks - among whom are many distinguished discioples such as Anuruddha, Kimbīla, Nandiya, Bhagu, Kundadhana if they feel they have realized the aim for which they have given up household life? On their assenting, he told them that when he claimed that he has destroyed the mental defilements (Āsavas) and that his disciples have gained various attainments of enlightenment (stream-enterer, once returner, non-returner and arahant) and their planes of rebirth after death through his teaching, he does so, not in order to cajole or to delude others, nor to gain fame and profit for himself, but to hearten and fill with enthusiasm believing lay followers, that they may concentrate with their whole hearts and follow the example of his disciples.

​References: 
1. www.accesstoinsight.org
2. https://suttacentral.net/
3. The middle length discourses of the Buddha (Bhikkhu Bodhi)