Daijiworld Media Network - Bengaluru
Bengaluru, Mar 18: The Enforcement Directorate (ED) carried out searches at eight locations in Bengaluru on Tuesday, targeting organizations linked to George Soros’ Foundation under the Foreign Exchange Management Act (FEMA).
According to ED sources, “The ED’s Delhi unit is conducting searches under FEMA, 1999, at eight premises in Bengaluru to investigate violations by the Soros Economic Development Fund (EDF) and Open Source Foundation (OSF).” The EDF serves as the impact investment arm of OSF.
George Soros, a Hungarian-American billionaire philanthropist, has been critical of the Indian government, particularly in a speech delivered before the Munich Security Conference. The BJP has accused Soros of working against India’s national interests.
Investigations have revealed that OSF, a US-based grantmaking network supporting civil society initiatives, was placed under the Prior Reference Category by the Ministry of Home Affairs (MHA) in 2016. This designation restricted it from providing unregulated donations to NGOs in India. To circumvent this restriction, OSF’s subsidiaries allegedly routed funds into the country as Foreign Direct Investment (FDI) and consultancy fees, which were then used to finance NGO activities in violation of FEMA, officials said.
The ED is also scrutinizing the utilization of other FDI funds received by Soros EDF and OSF. Searches included the premises of M/s Aspada Investments Pvt Ltd, an investment advisory firm managing Soros EDF’s operations in India. The company is reportedly a wholly owned subsidiary of a Mauritius-based entity.
Additionally, the ED has been investigating Human Rights Watch for allegedly receiving funds from OSF. Amnesty India, which has previously faced legal scrutiny, was charge-sheeted by the Central Bureau of Investigation (CBI) in a separate case. In 2022, Amnesty India’s chief Aakar Patel was fined Rs 10 crore, while the organization itself was penalized Rs 51.72 crore for violating the Foreign Contribution Regulation Act.
The ongoing raids are part of a broader FEMA investigation into foreign funding practices involving these organizations, sources said.