ED Uncovers Soros-Linked Financial Trail in Indian NGO Sector

The Enforcement Directorate (ED) has unearthed financial transactions linking billionaire philanthropist George Soros’s Soros Economic Development Fund (SEDF) to India’s NGO sector, raising concerns over potential violations of the Foreign Contribution (Regulation) Act (FCRA) and Foreign Direct Investment (FDI) norms.

Investigators have found that SEDF, the social impact investment arm of the Open Society Institute (OSI), routed funds to three Indian entities—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) and consultancy/service fees.

Rs 25 Crore in Questionable Transactions

Between 2020-21 and 2023-24, these firms collectively received approximately Rs 25 crore despite OSI being under the Indian Home Ministry’s scanner since May 2016 for “undesirable activities.” Consequently, OSI has required prior government approval to transfer funds to FCRA-registered organisations in India.

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 deliberate ploy to bypass FCRA restrictions, as SEDF is barred from directly donating to NGOs in India without Home Ministry clearance.

Similarly, RAPL, a company incorporated in 2019 for fundraising services, received Rs 2.70 crore as “commission agent services” from SEDF. However, the ED’s probe revealed that RAPL had not provided any actual services in return, suggesting it was merely a conduit to circumvent FCRA regulations.

ASAR, engaged in research, public engagement, and capacity building for NGOs since its incorporation in 2016, received Rs 2.91 crore as service fees from SEDF. Investigators have flagged this as another attempt to channel disguised donations to Indian NGOs under the pretense of service exports.

Mauritius-Based Funding Network Under Scrutiny

The ED probe has also traced OSI-linked investments to Aspada Investment Company (AIC), a Mauritius-based entity allegedly used to funnel funds into India. The investigation found that Aspada Investment Advisors Pvt Ltd (AIAPL), incorporated in Bengaluru in 2013, managed and advised SEDF’s investments in India, which totaled over Rs 300 crore across 12 companies.

Notably, Lightrock Investment Advisors Private Limited (formerly Aspada Investment Advisors Private Limited), the designated advisory firm overseeing SEDF’s Indian portfolio, was reportedly unaware of these transactions, further raising suspicions about their legitimacy.

Soros’s Influence and Controversies in India

George Soros has long been a polarizing figure globally, accused of using his vast wealth and philanthropy to influence political landscapes and regime changes through his Open Society Foundations. His foundation has faced scrutiny from multiple governments for allegedly funding activities that conflict with national interests.

In India, Soros’s name has surfaced in political and financial controversies, particularly regarding the Adani Group. In 2023, the Organised Crime and Corruption Reporting Project (OCCRP) alleged that the Adani Group utilized opaque Mauritius-based funds for self-investment. Soros’s Open Society Foundations is a known donor to OCCRP, leading to accusations that he played a role in orchestrating the allegations against Adani.

The Bharatiya Janata Party (BJP) has been vocal in its criticism of Soros, accusing him of attempting to destabilize India’s democratic framework for personal and political motives.

Intensifying Crackdown on Foreign Influence

The ED’s investigation underscores the government’s heightened scrutiny of foreign funding in India’s NGO sector, particularly amid concerns about financial flows influencing policy and political narratives. With OSI already under Home Ministry restrictions, the latest revelations could lead to stricter enforcement of FCRA and FDI norms, further tightening oversight on foreign donations and investments in India’s non-profit ecosystem.