George Soros has been a controversial figure worldwide, accused of using his wealth and claimed to be "philanthropy" to influence political landscapes and regime changes through his Open Society Foundations.
His foundation has been criticised by multiple governments for allegedly funding activities that disrupt national interests.
In India, Soros’s name has been linked to political and financial controversies, most notably in relation to the Adani Group and for allegedly pushing anti-Hindutva, anti-Modi and anti-BJP narratives.
Investigators have found that SEDF, the social impact investment arm of the Open Society Institute (OSI), provided funds to three Indian companies—Rootbridge Services Pvt Ltd (RSPL), Rootbridge Academy Pvt Ltd (RAPL), and ASAR Social Impact Advisors Pvt Ltd (ASAR)—under the pretext of foreign direct investment (FDI) or consultancy/service fees, reports say.
The Enforcement Directorate is examining funding from USAID in an investigation involving hedge fund operator George Soros and three Bengaluru-based companies.
The scrutiny includes ASAR Social Impact Advisors, which received Rs 8 crore from USAID.
ED aims to understand the motives behind the payments amid concerns over compliance and undesirable activities flagged by the home ministry.
In 2023, the Organised Crime and Corruption Reporting Project (OCCRP) alleged that the Adani Group used opaque Mauritius-based funds for investments in its own companies. Soros’s Open Society Foundations is known to be a donor to OCCRP, leading to accusations that he had a hand in orchestrating these allegations.
BJP criticised Soros, accusing him of attempting to undermine India’s democratic framework for personal and political gains.
The Enforcement Directorate has uncovered financial transactions linking billionaire philanthropist George Soros’s Soros Economic Development Fund (SEDF) to the NGO sector in India, raising concerns over possible violations of the Foreign Contribution (Regulation) Act and Foreign Direct Investment (FDI) norms.
These companies received approximately Rs 25 crore between 2020-2021 and 2023-2024, despite OSI being under the scrutiny of the Home Ministry since May 2016 for “undesirable activities.” Since then, OSI has required prior government approval to send funds to FCRA-registered organisations in India. ('India Today')
According to the ED’s findings, RSPL alone received Rs 18.64 crore from SEDF through Compulsorily Convertible Preference Shares (CCPS), valued at an inflated Rs 2.5-2.6 lakh per share based on the Discounted Cash Flow method. Authorities suspect this was a “colourable arrangement” to bypass FCRA restrictions, as SEDF is barred from directly donating to NGOs in India without Home Ministry approval.
Similarly, RAPL, a company incorporated in 2019 to provide fundraising services for non-profits, received Rs 2.70 crore as “commission agent services” from SEDF.
However, the ED noted that RAPL had not actually provided any services in return, suggesting it acted as a conduit to circumvent FCRA regulations.
ASAR, established in 2016 and engaged in public engagement, research, and capacity building for NGOs, received Rs 2.91 crore from SEDF as service fees. The ED has flagged this as another attempt to funnel disguised donations to Indian NGOs under the guise of payments for service exports.
THE MAURITIUS CONNECTION
The ED probe traced OSI-linked investments to Aspada Investment Company (AIC), a Mauritius-based entity that allegedly funnelled funds into India.
The probe found that Aspada Investment Advisors Pvt Ltd (AIAPL), incorporated in Bengaluru in 2013, managed and advised SEDF’s investments in India, which amounted to over Rs 300 crore across 12 companies.
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