ED conducts searches at entities linked to George Soros in Bengaluru

The case pertains to alleged FDI being sourced by OSF and the utilisation of these funds by certain beneficiaries in alleged contravention of Fema guidelines

The Enforcement Directorate (ED) on Tuesday conducted searches at the Bengaluru offices of George Soros-backed Open Society Foundations (OSF) and its linked entities as part of an ongoing probe under the Foreign Exchange Management Act (Fema), reported news agency PTI. 

The case pertains to alleged foreign direct investment (FDI) being sourced by OSF and the utilisation of these funds by certain beneficiaries in alleged contravention of Fema guidelines, the report said.  The OSF, established by Hungarian billionaire-philanthropist George Soros, is one of the world's largest private funders of initiatives supporting human rights, justice, and accountable governance. The organisation began its engagement in India in 1999, initially offering scholarships and fellowships. In 2014, OSF launched an India-specific grant-making programme, supporting initiatives related to access to medicine, justice system reforms, and public services for individuals with psychosocial disabilities.  

In 2016, the Union Home Ministry placed the OSF on a 'watchlist' due to concerns about its funding activities in India. This action required OSF to obtain prior permission from the MHA before transferring funds to Indian non-governmental organisations (NGOs) and associations, especially those not registered under the Foreign Contribution Regulation Act (FCRA). 

 

In January 2020, the OSF filed a petition with the Delhi High Court challenging the Home Ministry's decision. The foundation sought clarity on the reasons for its inclusion on the list and questioned the lack of prior notice before such action was taken.

 

In December last year, the ruling Bharatiya Janata Party (BJP) accused OSF, along with the Organised Crime and Corruption Reporting Project (OCCRP) and opposition leader Rahul Gandhi, of attempting to destabilise India. The BJP highlighted that OCCRP receives funding from OSF and suggested that their investigative reports targeting Indian entities were part of a coordinated effort to undermine the government.  The Congress dismissed these claims, asserting that the BJP was attempting to divert attention from issues concerning industrialist Gautam Adani, who was accused by short-selling firm Hindenburg Research of accounting fraud, stock price manipulation, and exploiting tax havens. Notably, the OCCRP had published reports critical of the Adani Group, which was slammed by the conglomerate as “Soros-funded interests.”  (With inputs from agencies)