ED Conducts Raids on George Soros’ Foundation and Associated NGOs in Bengaluru
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Synopsis
On March 18, the Enforcement Directorate (ED) initiated raids in Bengaluru targeting George Soros' Foundation and related NGOs under the Foreign Exchange Management Act. The investigation aims to probe alleged FEMA violations involving Soros' economic entities and their financial activities within India.
Key Takeaways
- ED raids eight locations linked to George Soros.
- Investigation focuses on FEMA violations.
- Soros' foundations allegedly bypassed donation regulations.
- Amnesty India and others face scrutiny.
- Ongoing investigations highlight international funding issues.
Bengaluru, March 18 (NationPress) The Enforcement Directorate (ED) initiated a series of raids in Bengaluru targeting George Soros’ Foundation and associated NGOs at eight different sites on Tuesday, operating under the Foreign Exchange Management Act (FEMA).
According to sources within the ED, “The ED Delhi is executing searches under FEMA, 1999 at 8 locations in Bengaluru to probe the FEMA violations by the Soros Economic Development Fund (EDF) and the Open Source Foundation (OSF).
The Soros EDF serves as the impact investment division of the OSF.
George Soros, a Hungarian-American billionaire philanthropist, has been critical of the Indian government in remarks made prior to the Munich Security Conference.
The BJP has accused Soros of undermining India's national interests.
Preliminary inquiries by the ED have disclosed that the OSF, a US-based grant-making entity claiming to support civil society organizations worldwide, with goals to promote justice, education, public health, and independent media, was categorized under Prior Reference Category by the Ministry of Home Affairs (MHA) in 2016. This designation limited its ability to make unregulated contributions to NGOs in India.
To circumvent this limitation, subsidiaries of the OSF in India allegedly funneled funds as FDI and consultancy fees, which were used to finance NGO activities, constituting a FEMA violation, as per sources.
The ED is also investigating the utilization of other FDI funds introduced by Soros EDF and OSF.
Additionally, the ED is examining M/s Aspada Investments Pvt Ltd, which acts as the investment advisor/fund manager for Soros EDF in India and is a wholly-owned subsidiary of a Mauritius-based entity, according to sources.
Amnesty India has also faced charges from the Central Bureau of Investigation (CBI).
The ED has initiated a case against Human Rights Watch, which allegedly received funds from OSF.
These raids by the ED are part of an ongoing FEMA investigation. In 2022, Amnesty's India head, Aakar Patel, was fined Rs 10 crore, while the NGO itself was penalized Rs 51.72 crore for infringing upon the Foreign Contribution Regulation Act.
