ED raids George Soros-linked organization in Bengaluru

The Enforcement Directorate (ED) is conducting extensive raids across eight locations in Bengaluru, including the offices of Open Society Foundations (OSF), an organization backed by US billionaire George Soros.

The searches are part of an ongoing probe into alleged violations of the Foreign Exchange Management Act (FEMA).

According to sources, a preliminary ED investigation suggests that OSF has been under the Ministry of Home Affairs “Prior Reference Category” since 2016, restricting it from making unregulated donations to Indian NGOs.

However, officials allege that OSF circumvented these restrictions by operating subsidiaries in India, channeling funds as Foreign Direct Investment (FDI) and consultancy fees. These funds were then allegedly used to finance NGO activities, raising concerns over FEMA violations.

The agency is also scrutinizing the utilization of FDI funds funneled through the Soros Economic Development Fund (EDF), investigating potential financial irregularities linked to foreign contributions.

This development follows controversial remarks by Soros in February 2023, ahead of the Munich Security Conference, where he criticized Prime Minister Narendra Modi, calling him “no democrat” and suggesting that the financial turbulence surrounding industrialist Gautam Adani could trigger a “democratic revival” in India.

His comments, referencing India within a broader discussion on open and closed societies, had sparked strong political reactions.

The ED’s latest action marks an escalation in scrutiny over foreign funding and its impact on India’s socio-political landscape.