ED Raids Bengaluru Entities Linked to George Soros’s Open Society Foundations
The Enforcement Directorate (ED) conducted searches at eight locations in Bengaluru associated with the Open Society Foundations (OSF), founded by U.S. billionaire George Soros, and its investment arm, Soros Economic Development Fund (SEDF), on March 18, 2025. The raids targeted entities including Aspada Investments Pvt. Ltd., which serves as the investment advisor for SEDF in India.
The investigation centers on alleged violations of the Foreign Exchange Management Act (FEMA). Authorities are scrutinizing foreign direct investments (FDI) sourced by OSF and SEDF, focusing on the utilization of these funds by certain beneficiaries. Preliminary findings suggest that OSF, placed under the “prior reference category” by the Ministry of Home Affairs in 2016, may have attempted to bypass restrictions by channeling funds as FDI and consultancy fees to support NGO activities, potentially contravening FEMA regulations.
Notably, SEDF invested approximately ₹25 crore in three Indian companies—Rootbridge Services Pvt. Ltd. (RSPL), Rootbridge Academy Pvt. Ltd. (RAPL), and ASAR Social Impact Advisors Pvt. Ltd.—between 2020-21 and 2023-24. Investigations indicate that these investments, structured as compulsorily convertible preference shares and service fees, may have been mechanisms to circumvent FCRA provisions, allowing indirect funding to NGOs without requisite approvals.
The ED’s actions align with ongoing scrutiny of foreign funding in India, particularly concerning entities linked to George Soros. The BJP has previously accused Soros of attempting to undermine India’s interests, especially following his comments during the Adani-Hindenburg controversy. OSF, operational in India since 1999, has faced restrictions on its funding activities due to alleged undesirable activities, leading to its inclusion in the prior reference category by the Ministry of Home Affairs.
The current investigation underscores the Indian government’s vigilance in monitoring foreign funding and ensuring compliance with domestic regulations. The outcomes of these searches and subsequent inquiries are anticipated to have significant implications for NGOs and foreign entities operating within India.
