ED Raids Bengaluru Firms Over Foreign Fund Transfers

Backed by US billionaire George Soros, OSF reportedly transferred ₹25 crore to these firms in recent months through “suspicious” transactions. The raids targeted Rootbridge Services Pvt Ltd in Ashoknagar, ASAR Social Advisor Pvt Ltd in Malleswaram, and an unnamed third company, according to an ED source.

Authorities suspect that since 2016, OSF has funneled around ₹300 crore into India via fictitious firms using the Foreign Direct Investment (FDI) route. This shift allegedly occurred after the Ministry of Home Affairs (MHA) placed OSF under the Prior Reference Category (PRC) in the Foreign Contribution (Regulation) Act (FCRA), requiring prior government approval for fund transfers. However, FDI automatic routes do not require such permissions, raising concerns about possible fund misuse.

During the raids, officials seized documents to verify the legitimacy of the firms and the purpose of the OSF funding. The ED is now reviewing transaction records, and if signs of money laundering emerge, an Enforcement Case Information Report (ECIR) will be registered under the Prevention of Money Laundering Act (PMLA).

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