ED investigates Soros-linked funds to Indian NGOs

The Enforcement Directorate (ED) conducted searches at eight locations in Bengaluru on Tuesday. This action is part of an investigation into financial regulations involving the Open Society Foundations (OSF) and its investment branch, the Soros Economic Development Fund (SEDF). Officials reported that the ED discovered a money trail linking ₹25 crore from Soros' companies to various NGOs in India. The agency is examining whether these funds, totaling ₹300 crore, violated the Foreign Exchange Management Act (FEMA). The ED is particularly focused on how OSF and SEDF used funds for investments and donations to NGOs in India. The agency said that OSF had previously been restricted by India's Ministry of Home Affairs in 2016 from making unregulated donations to local organizations. To get around this limitation, OSF reportedly created subsidiaries in India and funneled money as foreign direct investment (FDI) and consultancy fees. SEDF has invested heavily in India, starting with ₹50 crore in its first fund back in 2013. These investments have supported various companies, such as the quick-commerce platform Dunzo Digital and WayCool Foods. However, SEDF sold its controlling stake in its Indian subsidiary, Aspada, in 2021. The controversies surrounding George Soros have intensified recently. He drew attention in February 2023 when he claimed that Prime Minister Modi and business tycoon Gautam Adani were closely linked in a way that impacts each other's fortunes. The Adani Group has denied allegations of wrongdoing following critical reports from short-sellers. Additionally, the ruling BJP has accused the Congress party of colluding with Soros and organizations he funds to undermine the government. The Congress party has responded by accusing the BJP of trying to protect Adani. They have questioned the government's actions against Soros while continuing to support entities connected to him.