Fri Mar 21 01:40:00 UTC 2025: ## ED Raids in Bengaluru Target Soros-Linked Organizations for FEMA Violations

**Bengaluru, India –** The Enforcement Directorate (ED) conducted searches at eight locations in Bengaluru on Tuesday as part of an ongoing investigation into alleged foreign exchange violations by organizations linked to billionaire George Soros. The raids targeted NGOs and firms funded by Soros’ Open Society Foundations (OSF) and Soros Economic Development Fund (SEDF), including Aspada Investments Private Limited, the Indian investment advisor for SEDF.

The ED alleges that approximately ₹25 crore (approximately $3 million USD) was channeled from Soros’s companies to several Indian NGOs. Furthermore, the agency is scrutinizing approximately ₹300 crore (approximately $36 million USD) in funds transferred by OSF through its subsidiaries via the automatic FDI route. These funds, along with additional investments made by SEDF into over 12 Indian companies totaling ₹300 crore (approximately $36 million USD), are suspected of violating the Foreign Exchange Management Act (FEMA).

A senior ED officer, speaking on condition of anonymity, stated that the investigation focuses on potential contraventions of FDI rules by SEDF and OSF, including the alleged circumvention of 2016 restrictions placed on OSF by the Ministry of Home Affairs (MHA). These restrictions limited OSF’s ability to provide unregulated donations to NGOs in India. The ED believes OSF may have established subsidiaries in India to bypass these restrictions, channeling funds through FDI and consultancy fees to indirectly fund NGO activities—a violation of FEMA.

The investigation also includes a review of the end use of all FDI funds brought into India by SEDF and OSF. While Aspada Investments, a subsidiary of SEDF, received ₹50 crore (approximately $6 million USD) in 2013 from SEDF for its first fund, and subsequently invested in companies like Dunzo Digital and WayCool Foods, SEDF later sold a controlling stake to LGT (now Lightrock).

OSF and SEDF have not yet commented on the ongoing investigation. The timing of the raids follows Soros’s February 2023 comments linking Prime Minister Narendra Modi and Gautam Adani, which sparked political controversy in India. The BJP has subsequently linked Soros and his organizations to the Congress party, accusations the Congress denies.

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