ED raids Bengaluru offices of George Soros-backed Open Society Foundations in FEMA probe

ED investigates foreign exchange violations linked to OSF funding The Enforcement Directorate (ED) conducted searches in Bengaluru on Tuesday at the offices of Open Society Foundations (OSF), founded by billionaire philanthropist George Soros, as part of an ongoing investigation under the Foreign Exchange Management Act (FEMA). The searches also targeted several linked entities and alleged […] The post ED raids Bengaluru offices of George Soros-backed Open Society Foundations in FEMA probe appeared first on PGurus.

Mar 18, 2025 - 11:24
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ED raids Bengaluru offices of George Soros-backed Open Society Foundations in FEMA probe
The case pertains to alleged FDI sourced by OSF and the subsequent utilization of these funds in contravention of FEMA guidelines

ED investigates foreign exchange violations linked to OSF funding

The Enforcement Directorate (ED) conducted searches in Bengaluru on Tuesday at the offices of Open Society Foundations (OSF), founded by billionaire philanthropist George Soros, as part of an ongoing investigation under the Foreign Exchange Management Act (FEMA). The searches also targeted several linked entities and alleged beneficiaries, including some associated with international human rights organizations, according to official sources.

The case pertains to alleged foreign direct investment (FDI) sourced by OSF and the subsequent utilization of these funds in contravention of FEMA guidelines. Authorities are investigating whether financial transactions involving OSF comply with India’s foreign exchange and regulatory laws.

OSF’s presence and scrutiny in India

Founded by Hungarian-American billionaire George Soros, OSF is one of the world’s largest private funders of initiatives supporting human rights, justice, and accountable governance. The organization began its engagement in India in 1999, initially offering scholarships and fellowships. In 2014, it expanded its operations, launching an India-specific grant-making program focused on:

  • Extending access to medicine
  • Justice system reforms
  • Strengthening rights, public services, and community living for people with psychosocial disabilities

However, concerns over OSF’s funding activities led the Union Home Ministry to place it on a “watchlist” in 2016. This decision required OSF to obtain prior approval before transferring funds to Indian NGOs and associations not registered under the Foreign Contribution Regulation Act (FCRA).

In January 2020, OSF challenged the government’s decision in the Delhi High Court, seeking transparency on why it was placed under restrictions and questioning the lack of prior notice.

Political controversy surrounding OSF and BJP allegations

OSF has been at the center of a political dispute in India, particularly in connection with the ruling Bharatiya Janata Party (BJP). In December 2023, the BJP accused OSF, along with the Organized Crime and Corruption Reporting Project (OCCRP) and Congress leader Rahul Gandhi, of attempting to destabilize India. The party highlighted OSF’s financial support to OCCRP, alleging that investigative reports targeting Indian entities were part of a coordinated effort to undermine the government.

The Congress party dismissed these allegations, asserting that the BJP was trying to deflect attention from the Adani-Hindenburg controversy. The OCCRP had published reports critical of industrialist Gautam Adani, following accusations by short-selling firm Hindenburg Research that the Adani Group engaged in accounting fraud, stock manipulation, and tax haven exploitation. The Adani Group dismissed these reports as being driven by “Soros-funded interests.”

OSF’s financial contributions and India operations

According to official data, OSF’s total expenditure for India in 2021 was $406,000. Despite its focus on philanthropic initiatives, the foundation has been scrutinized for potentially violating India’s foreign exchange regulations.

A response from OSF regarding the ED searches is still awaited. The foundation has previously stated that its India-specific programs support local organizations working on public welfare issues.

The future of OSF’s operations in India remains uncertain as authorities continue their probe into its financial activities and FEMA violations.

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The post ED raids Bengaluru offices of George Soros-backed Open Society Foundations in FEMA probe appeared first on PGurus.

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