India’s Enforcement Directorate (ED) recently conducted searches at eight locations in Bengaluru, investigating potential foreign exchange violations involving the Open Society Foundations (OSF) and its investment arm, the Soros Economic Development Fund (SEDF). The probe is being conducted under India’s Foreign Exchange Management Act (FEMA), focusing on how foreign funds were received and utilized by various entities in India.
According to Indian media reports, authorities are examining allegations that OSF and SEDF brought in foreign direct investment (FDI), and that some recipients may have misused these funds in ways that violated FEMA rules. The ED claims OSF-funded organizations may have bypassed restrictions set by the Ministry of Home Affairs (MHA) by routing funds through subsidiaries and consultancy arrangements.
Officials stated that OSF had been placed under India’s prior reference category in 2016, limiting its ability to send funds to Indian NGOs without clearance. The current investigation suggests that funds were sent in a manner intended to bypass these limitations, potentially constituting regulatory non-compliance.
OSF, founded by American philanthropist George Soros, began operating in India in 1999 but reportedly does not maintain a physical office in the country. Media reports claim that OSF sent close to $3 billion to various organizations in India over the years, although the full scope of these transactions is still under review.
Separately, in the U.S., scrutiny has grown around a recent Federal Communications Commission (FCC) decision to approve a deal involving Soros Fund Management acquiring a major stake in Audacy Inc., which owns over 200 radio stations. This move has drawn congressional attention and concerns regarding transparency and regulatory process.
Some lawmakers have questioned whether the FCC expedited the approval process, especially considering the timing near an election year. Discussions are ongoing within congressional committees about media ownership and foreign investment implications.
