Indian Firm Under ED Investigation for Foreign Funding
The Enforcement Directorate (ED) is investigating Bengaluru-based ASAR Social Impact Advisors over alleged violations of the Foreign Exchange Management Act (FEMA), following substantial foreign fund inflows amounting to over ₹33 crore. The company reportedly received ₹8 crore from the U.S. Agency for International Development (USAID) during the financial year 2022-23 and an additional ₹25 crore between 2021 and 2024 from the Soros Economic Development Fund.
ASAR Foreign Funding
ASAR has maintained that the USAID funds were reimbursements for services rendered under a project linked to the Council on Energy, Environment and Water (CEEW), a public policy think tank based in Delhi. According to ASAR, this funding was part of a consultancy-based engagement concerning environmental policy work, particularly in areas related to cleaner air initiatives.
CEEW has publicly distanced itself from the controversy, stating that it has never received funding from George Soros or his affiliated Open Society Foundations. It also clarified that its association with ASAR was limited to a single, now-concluded USAID-funded project and that there is no ongoing relationship with the firm.
ED Investigation Expands
The ED’s probe is not limited to ASAR alone. Two other Bengaluru-based entities—Rootbridge Services Pvt Ltd and Rootbridge Academy Ltd—are also under scrutiny for similar alleged FEMA violations involving foreign donations or consultancy payments. Authorities are examining whether these transactions complied with Indian regulations governing the receipt and usage of foreign funds.
The investigation is part of a broader push by enforcement agencies to examine the financial dealings of entities receiving overseas support, particularly those linked to politically sensitive or foreign-backed initiatives. Officials are reviewing financial statements, fund usage reports, and any possible regulatory lapses as they determine the legality of the foreign inflows.
The ongoing probe reflects heightened scrutiny of international funding channels in India, especially those linked to civil society or policy consultancy firms. The findings could have wider implications for how such organizations operate within the framework of India’s financial and legal system.
