New Delhi:
The Enforcement Directorate (ED) has made a big disclosure about companies associated with George Soros. According to information received from ED sources, investigation by companies associated with George Soros has revealed that these companies were illegally funding NGO’s in India. According to ED sources, there have been many shocking revelations in the investigation so far. During the investigation, it was found that the Open Society Institute, USA (OSI, earlier called Open Society Foundation-OSF) was placed by the Ministry of Home Affairs on 30.05.2016 by the Ministry of Home Affairs in the Prior Reference Category (PRC), as its work was found unwanted. This means that OSI has to take permission of the Ministry of Home Affairs before sending money to any FCRA registered organization in India.
Investigation has revealed that a unit named Soros Economic Development Fund (SEDF) of OSI is known for social investment works. But the investigation has revealed that SEDF provided financial assistance for many tasks related to the NGO region by sending money in India as FDI (FDI) or consultancy or service fees. For this, financial assistance was given to three Indian companies (Rootbridge Services Private Limited (RSPL), Rootbridge Academy Private Limited (RAPL) and Asar Social Impact Advisors Private Limited). Between 2020-21 and 2023-24, these companies got around ₹ 25 crore from SEDF. While SEDF, which is operated by a PRC listed institution (OSI), could not send money directly to Indian NGOs, so alternative methods were used.
RSPL suspected FDI funding
The investigation so far has revealed that RSPL received ₹ 18.64 crore from SEDF, which was invested through Compulsorily Convertible Preference Shares (CCPS). This money was given at a premium of ₹ 2.5 lakh to ₹ 2.6 lakh per share, which was based on the DCF method. The resident team is getting indications that this investment can violate FDI standards and try to bypass the restrictions by SEDF.
Conspiracy to bypass funding through Rapl
The Rapl, which was established in 2019, mainly provides fundrazing services for non-profit organizations (NGOs). But it received ₹ 2.70 crore “commission agent” from SEDF as service fees, while no service was given. From this it is clear that RAPL acted as an agent for SEDF and bypassing the FCRA provisions to send money to NGOs in India.
ASAR transaction of money under the guise of service fees
Asar Social Impact Advisors Pvt. Ltd. It was established on 26.02.2016. The company supports Indian NGOs through communication strategy development, capacity building, research and other services. But getting ₹ 2.91 crore from SEDF as a service fee shows that this fund can actually be the money given under the guise of donation, and SEDF was not given any service.
SEDF invested ₹ 300 crore to 12 companies in India
Sources also revealed that the OSI group formed the Aspada Investment Company (AIC) in Mauritius, which was used to send SEDF funding in India. In addition, Aspada Investment Advisors PVT LTD (AIAPL) was registered in Bengaluru on 04.02.2013, so that Indian investments of SEDF could be managed. According to the report, SEDF invested more than ₹ 300 crore in a total of 12 companies in India.
Shocking revelation – Indian Investment Branch was not aware
The most shocking thing is that SEDF’s investment branch in India i.e. ASPADA Investment Advisors Private Limited (Now Lightrock Investment Advisors Privisors Private Limited), which looked after Indian investments of SEDF, did not even know about this activity. FDI and service fee used to bypass FCRA provisions. Companies like Rootbridge, Rapl and Asar were taken to deliver money to Indian NGOs through SEDF. This case can now come under investigation related to FDI rules and FCRA violations.
(Tagstotranslate) Ed (T) George soros
