George Soros-Funded Startups In Bengaluru Under ED Radar-One Of Them-ASAR Received Rs 8 Cr From USAID

Bengaluru: Three Bengaluru-based start-up firms are being probed by the Enforcement Directorate officials in connection with its association with the hedge fund operator George Soros’ NGO – Open Societies Foundation (OSF) and its impact investment arm – Soros Economic Development Fund (SEDF) that is allegedly involved in breaching the Foreign Exchange Management Act (FEMA) – allegedly using foreign direct investments for undesirable activities flagged by the Ministry of Home Affairs (MHA).

These start-up firms are ASAR Social Impact Advisors situated at Malleswaram in the heart of the city, Rootbridge Services Pvt Ltd, and Rootbridge Academy Ltd located at Anekal at the outskirts of Bengaluru.

Sources privy to the probe by ED said that the investigating agency has learnt that firm ASAR Social Impact Advisors has received Rs 8 Cr from the United States Agency of International Development (USAID) that is currently under the scanner of the United States government administration led by the newly elected President Donald Trump. This comes in the wake of the Trump administration repeatedly criticizing the USAID of promoting propaganda of ‘”Left, Liberal and Woke” at other countries.

The Enforcement Directorate officials in India had recently initiated an investigation on NGOs run by George Soros who is the founder of the Open Societies Foundation. Probe by the ED so far – revealed concerns over compliance of foreign fund transactions to the tune of Rs 25 crore involving the three Bengaluru-based start-up firms. The agency is probing the motives behind the payments’ transactions which are in violation with the FEMA.

On further probing by the ED officials on the Rs 8 crore that has been received by the ASAR Social Impact Advisors Pvt Ltd from the USAID, sources privy to the probe said that the firm had received the said amount as a foreign remittance fund – a reimbursement of their payment that had been made to a public policy think tank based out in New Delhi – Council for Energy, Environment and Water (CEEW) for their services into research work on ‘understanding global challenges and implications for India’s Development.’

However, CEEW had clarified that the Council had contracted ASAR to provide services for a USAID project related to cleaner air and that the project had already ended. CEEW also clarified that the firm had no links with Geroge Soros or his NGO – Open Societies Foundation and had not received any funding from them. The council further reiterated that they had no association with the ASAR at present.

NewsX visited one of the three Bengaluru firms – ASAR Social Impact Advisors Pvt Ltd and found the office shut on a working day – Wednesday – April 2nd.

An email questionnaire yielded the firm’s response which stated – “We want to state unequivocally that Asar has not received any Foreign Direct Investment (FDI) from any entity. Our Indian directors hold 100% of the share capital, and we operate like any consulting organisation—through service contracts. We remain fully compliant with all legal requirements, including FEMA.
We have been contracted to provide our services by CEEW on a USAID project – Clean Air Better Health that aimed to support the implementation of the National Clean Air Program (NCAP) to reduce exposure of people to air pollution.

Integrity has always been at the core of Asar’s work. We continue to collaborate with diverse stakeholders, including government agencies to address the climate crisis and support India’s ambitious emissions reduction goals and enormous and challenging efforts to build an equitable and economically resilient society.

We are cooperating transparently with the Authorities, providing all necessary information to support their inquiry, and remain committed to upholding all legal and regulatory obligations.”

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