Bengaluru-based company funded by Soros got Rs 8 cr from USAID, ED says: Report

The ED had carried out raids on the three companies for 'breaching of FEMA' and receiving Rs 25 crore from Soros Economic Development Fund. Now, the ED has found that ASAR Social Impact Advisors, one of the companies, has received Rs 8 crore from USAID.

In mid-March, the Enforcement Directorate (ED) had raided eight locations linked to three Bengaluru-based companies that received funds from the US nonprofit Open Society Foundations (OSF), which is backed by US billionaire George Soros, in alleged contravention of Foreign Exchange Management Act (FEMA) rules.

The raids in March came after OSF transferred Rs 25 crore to the companies in "suspicious" transactions in the past few months

Now, in a report by The Times Of India, United States Agency for International Development (USAID) which is said to have been criticised by President Donald Trump for promoting "left, right, and woke" agenda abroad, has come in the spotlight for the ED for allegedly funding a Bengaluru-based company, which have links to Soros.

The ED carried the raid in the three companies for 'breaching of FEMA' and receiving Rs 25 crore from Soros Economic Develpment Fund.

Now, the ED has found that ASAR Social Impact Advisors, one of the companies, has received Rs 8 crore from USAID.

As per the report, they received the amount in 2022-23 as foreign inward remittance. However, ASAR explained that the funding received from USAID was 'reimbursement' for the services they had provided to Council on Energy, Environment, and Water (CEEW).

According to their website, CEEW is an independent, non-partisan, not-for -profit policy research institution, that is devoted to research on matters affecting the use, reuse and misuse of resources.

CEEW focuses on "understanding global challenges and implications for India's development. All research outputs internationally relevant," as per their website.

ASAR officials, however, did not mention the kind of service that was provided to CEEW and what is USAID's role in this.

CEEW in their statement mentioned that they have "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," the statement read.

Since 2016, OSF has transferred Rs 300 crore in "dubious" transactions to fictitious firms via the Foreign Direct Investment (FDI) automatic route, as per source.

In the past, OSF would send funds to its India beneficiaries having licences under the Foreign Contribution (Regulation) Act (FCRA). However, in 2016, the ministry placed OSF under the PRC within the FCRA. The act specifies that any company placed under the PRC should take prior permission from the MHA to transfer funds to India.

(With DHNS inputs)