ED examines how to formally launch probe into USAID funding allegations

The Enforcement Directorate (ED) is examining how to proceed with investigating allegations pertaining to the United States Agency for International Development’s (USAID) funding of efforts aimed at boosting “voter turnout in India” people familiar with the development said, even as a war of words broke out between the ruling Bharatiya Janata Party (BJP) and the Congress on the issue.

To be sure, no formal probe has been initiated by the financial crimes probe agency in the matter yet. And to be sure, details of what was funded, and how, remain unclear.

Since it cannot unilaterally register a money laundering case in the absence of a predicate offence recorded anywhere in the country, ED is exploring if it should itself write to a predicate agency -- such as the Central Bureau of Investigation (CBI) or the police – to register a first information report (FIR).

Section 66 of the PMLA (prevention of money laundering act) allows ED to furnish information to any agency/police if it feels a crime has been committed. ED has used this route to launch a PMLA probe earlier in the NewsClick and Chhattisgarh liquor cases.

A senior officer, who asked not to be named, confirmed ED’s interest in the allegation: “We are currently examining the nature of allegations and how to take up the probe formally. If need be, we will first send a reference to a predicate offence agency asking them to file an FIR”.

The issue was sparked by the US department of government efficiency (DOGE) announcing a series of expenditure cuts, including $21 million allocated for “voter turnout in India” through foreign aid agency USAID.

Addressing an event in Miami on Thursday, US President Donald Trump questioned the USAID funding and wondered whether it was trying to get someone else elected.

BJP leaders in India have criticised USAID saying the agency was funnelling large sums of money into India to instigate protests.

On Friday, BJP’s national spokesperson Gaurav Bhatia attacked the Congress on the USAID issue and called Rahul Gandhi a traitor.

“While funding for the government (in India) stopped, there was an increase in funding for the NGOs during Rahul Gandhi’s Bharat Jodo Yatra to strengthen Rahul Gandhi ahead of the polls in an attempt to defeat Narendra Modi (in the Lok Sabha elections),” he claimed.

The Congress has demanded the government for a white paper on the USAID funding as well as funding by other such agencies in India.

Citing a media report, which stated that $21 million had come for Bangladesh, not India, Congress general secretary in-charge communications Jairam Ramesh said in a post on X, “Lies first mouthed in Washington. Lies then amplified by BJP’s Jhoot Sena. Lies made to be debated on Godi media. Lies now thoroughly exposed. Will the liars apologise?”

The ministry of external affairs spokesperson said on Friday that the revelations about USAID funding for certain activities in the country are deeply troubling and have led to concerns about foreign interference in its internal affairs.

“We have seen information that has been put out by the US administration regarding certain US activities and funding. These are obviously very deeply troubling,” MEA spokesperson Randhir Jaiswal said.