ED probes USAID's funding to Indian firm linked with Soros
What's the story
The Enforcement Directorate (ED) is now looking into the US Agency for International Development (USAID) in the wake of a probe against hedge fund operator George Soros.
The focus is on three Bengaluru-based firms that allegedly violated the Foreign Exchange Management Act by receiving ₹25 crore from the Soros Economic Development Fund (SEDF).
One, ASAR Social Impact Advisors, reportedly received another ₹8 crore from USAID as foreign inward remittance in 2022-23.
Funding details
ASAR Social Impact Advisors's funding sources
ASAR Social Impact Advisors was funded by Soros from 2021 to 2024.
When asked about its USAID funding, ASAR said it was reimbursement for services provided to the Delhi-based public policy think tank Council on Energy, Environment and Water (CEEW).
However, ASAR officials failed to provide details on these services or how USAID came into the picture for this deal.
Clarification
CEEW denies any connection to Soros or USAID
Following the investigation, CEEW released a statement defending itself.
The think tank denied any ties with Soros or the Open Society Foundations (OSF), saying it has "never had any association or received any funding from George Soros or the Open Society Foundations."
It added that ASAR was hired by CEEW for certain services for a USAID project on cleaner air. That project is over, and there's no relationship now, it added.
Regulatory scrutiny
ED investigates USAID's payments and compliance with regulations
The ED is investigating the reason behind these alleged USAID payments.
TOI sources said in 2016, the Union home ministry had put Soros's Open Society Foundations under the 'prior reference category' for "undesirable activities."
This mandates it to require prior approval from the government to fund any Indian non-profit organization.
The ED is also looking into whether OSF complied with statutory requirements in the case of ASAR and two other Bengaluru-based firms that received funding from SEDF.