Authorities Raid Soros-Backed Groups in India Over Foreign Funding Scandal
In a major enforcement action, India’s Enforcement Directorate (ED) launched raids on eight premises in Bengaluru, including offices associated with George Soros’ Open Society Foundations (OSF) and its investment arm, the Soros Economic Development Fund (SEDF), over alleged violations of the Foreign Exchange Management Act (FEMA).
Scope of the Investigation
The ED is investigating claims that these entities channeled foreign funding into Indian NGOs and companies through unlawful means. Authorities have alleged the usage of FDI and consultancy fee structures to bypass restrictions imposed by the Ministry of Home Affairs since 2016, which required prior approval for foreign contributions.
One source indicated that the funding was funneled via Indian subsidiary firms and service-fee mechanisms without adequate provisioning of actual services, raising suspicion of disguised donations.
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