Soros-funded Bengaluru firm received Rs 8 crore from USAID, ED probes FEMA violations: Report
USAID allegedly funded three Bengaluru-based firms linked to George Soros, now under ED probe for FEMA violations.
The United States Agency for International Development (USAID) is under scrutiny after it allegedly funded three Bengaluru-based companies with ties to hedge fund operator George Soros, according to an Enforcement Directorate (ED) investigation. The development comes at a time when USAID is facing criticism from the Trump administration for allegedly promoting a "left, liberal and woke" agenda abroad.
The ED probe centers around three Bengaluru-based companies—ASAR Social Impact Advisor, Rootbridge Services Pvt Ltd, and Rootbridge Academy Ltd—over alleged violations of the Foreign Exchange Management Act (FEMA). These companies reportedly received Rs 25 crore from the Soros Economic Development Fund (SEDF), the impact investment arm of Open Society Foundations, an entity founded by Soros. The funds were transferred between 2021 and 2024.
Latest Videos
During the investigation, ED officials discovered that ASAR Social Impact Advisor also received Rs 8 crore from USAID as a foreign inward remittance in 2022-23, as reported by The Times of India.
ASAR management reportedly told the ED that the USAID funding was a reimbursement for services provided to a Delhi-based public policy think tank, the Council on Energy, Environment, and Water (CEEW). According to its website, CEEW focuses on "understanding global challenges and implications for India's development."
However, ASAR was reportedly unable to clarify the exact nature of the services rendered to CEEW or its relationship with USAID.
No link to George Soros or Open Society Foundations: CEEW
Amid the controversy, CEEW issued an official statement to Asianet Newsable, stating, "CEEW has no link to George Soros or the Open Society Foundations. CEEW has never had any association or received any funding from George Soros or the Open Society Foundations."
"ASAR Social Impact Advisors was contracted by CEEW to provide specific services for a USAID project related to cleaner air. This project has already ended. CEEW has no current relationship to ASAR at this stage. CEEW has not received any queries from any government authorities related to ASAR. We have no reason nor have any basis on which to comment on any ongoing investigation concerning a third party," it added.
"CEEW remains dedicated to its mission of conducting independent, rigorous research to support India's sustainable development. We are aligned with development priorities outlined by governments in India at different levels and will continue supporting evidence-based policymaking and implementation in this spirit. We wish to emphasise that all our work is conducted transparently, in full compliance with relevant regulations, and aligns with our core mission to serve the public interest," the statement further read.
Notably, the Open Society Foundations were placed under the Home Ministry’s 'prior reference category' in 2016 due to alleged "undesirable activities." This classification mandates that the organisation seek prior approval from the ministry before funding any Indian non-profit entity.
The ED is also investigating Soros’s broader financial contributions to Indian civil rights groups, think tanks, and other organizations, purportedly under the guise of foreign direct investments. The case has raised questions about the flow of foreign funds into India and their potential influence on public policy and governance.
subscribe to Asianet Newsable WhatsApp channel by clicking here.