The Enforcement Directorate (ED) has uncovered a financial trail connecting billionaire investor and philanthropist George Soros’s Soros Economic Development Fund (SEDF) to Indian entities operating in the NGO sector, sparking serious questions about potential violations of the Foreign Contribution (Regulation) Act (FCRA) and foreign direct investment (FDI) norms. The revelations, based on detailed investigations, have triggered fresh scrutiny over the methods used to funnel foreign funds into India, especially from entities associated with Soros’s Open Society Foundations (OSF).
 

According to ED officials, between 2020 and 2024, nearly Rs 25 crore was transferred from SEDF to three Indian private companies—Rootbridge Services Pvt Ltd (RSPL), Rootbridge Academy Pvt Ltd (RAPL), and ASAR Social Impact Advisors Pvt Ltd (ASAR). These transactions were reportedly made under the pretext of foreign investment or consultancy and service payments. However, the ED has flagged these as suspect, suggesting the structure was deliberately designed to bypass the regulatory oversight of the Ministry of Home Affairs.
 

The SEDF, which operates as the impact investment arm of the Open Society Institute (OSI), has been on the Home Ministry’s radar since 2016 for alleged “undesirable activities.” Following this designation, OSI has required prior government clearance for any fund transfers to FCRA-registered NGOs in India. The recent ED probe suggests that SEDF may have used commercial investment instruments to circumvent this rule. In particular, RSPL received Rs 18.64 crore via Compulsorily Convertible Preference Shares (CCPS), which were priced significantly higher than market standards at approximately Rs 2.5–2.6 lakh per share. These shares were valued using the Discounted Cash Flow (DCF) method. The agency suspects this was a “colourable arrangement” aimed at creating a façade of legitimate investment while effectively transferring funds in a manner resembling donations.
 

Similarly, RAPL, incorporated in 2019 and listed as a fundraising and consultancy service provider for NGOs, was paid Rs 2.70 crore by SEDF under the label of “commission agent services.” However, the ED states that the company did not render any substantial services to justify such a payment, indicating it may have been used as a pass-through entity to mask foreign contributions. ASAR, an organisation involved in public engagement and research for the NGO sector, received Rs 2.91 crore in what was labelled as service fees. The ED believes this transaction, too, was an attempt to disguise foreign donations as payment for exports, further bypassing the FCRA regulations. The investigation has also uncovered a Mauritius-based funding channel linked to these transactions. Aspada Investment Company (AIC), based in Mauritius, was identified as a conduit for OSI-linked investments in India. The Indian arm, Aspada Investment Advisors Pvt Ltd (AIAPL), based in Bengaluru, was responsible for managing SEDF’s portfolio in the country. The investments handled by AIAPL reportedly exceed Rs 300 crore across 12 different Indian companies.
 

What has raised further eyebrows is that Lightrock Investment Advisors Private Limited, formerly known as Aspada Investment Advisors, was allegedly not informed about several of these recent transactions. This lack of transparency has intensified suspicions around the legitimacy of the funding channels and the real intent behind the fund transfers. The broader controversy around George Soros’s financial influence has also reignited political debate. Soros has long been accused globally of using his philanthropy to push political agendas, and in India, he remains a polarizing figure. His Open Society Foundations are known supporters of investigative journalism projects such as the Organised Crime and Corruption Reporting Project (OCCRP), which in 2023 alleged that the Adani Group had used opaque Mauritius-based funds to invest in its own firms. Soros’s connection to OCCRP has fueled allegations that he has been attempting to sway India’s political and economic narrative.
 

The Bharatiya Janata Party (BJP) has consistently criticized Soros, accusing him of meddling in India’s internal affairs under the garb of philanthropy. They allege that his efforts are aimed at destabilizing democratic institutions and undermining India’s sovereignty. With the ED’s investigation now shedding light on questionable funding mechanisms involving SEDF and Indian NGO-related firms, those accusations are gaining renewed traction. The probe into the George Soros-linked fund is ongoing, but it has already highlighted the complex networks of foreign funding, blurred lines between investment and donation, and the urgent need for regulatory vigilance. It remains to be seen whether criminal proceedings or restrictions will follow, but the ED’s findings have certainly set off alarm bells regarding compliance and national interest.