ED Searches Bengaluru Locations Tied to Soros Organizations Amid Foreign Exchange Probe

NEW DELHI, India — The Enforcement Directorate (ED) conducted searches at eight sites in Bengaluru on Tuesday linked to a foreign exchange violation investigation involving the Open Society Foundations (OSF) and the Soros Economic Development Fund (SEDF), both established by American billionaire George Soros.

The searches were part of a probe regarding potential violations of the Foreign Exchange Management Act (FEMA). Locations included various non-governmental organizations (NGOs) and companies funded by OSF and SEDF, as well as Aspada Investments Private Limited, the holding company for SEDF.

According to ED officials, the agency uncovered a money trail totaling ₹25 crore from Soros’ companies to multiple NGOs in India. Additionally, funds amounting to ₹300 crore transferred by OSF through its subsidiaries under the auto foreign direct investment (FDI) route are under scrutiny.

“Our teams executed raids on Tuesday to investigate violations of FDI regulations by SEDF and OSF in India, along with the subsequent use of those funds,” an unnamed officer explained.

The officer also stated that preliminary investigations indicate OSF was classified under the prior reference category by the Ministry of Home Affairs in 2016, which hindered its ability to provide unregulated donations to NGOs in India.

“To circumvent this restriction, OSF established subsidiaries within India and channeled funds through FDI and consultancy fees, leading to potential FEMA violations,” the officer added.

A second officer mentioned that the ED is assessing the utilization of other FDI funds brought into the country by SEDF and OSF.

Despite requests for comment, representatives from OSF and SEDF did not respond.

In 2013, SEDF invested ₹50 crore in its subsidiary, Aspada Investments, through its first fund, Aspada Fund 1, which ultimately raised approximately ₹271 crore. This fund was used to invest in various companies, including Dunzo Digital, WayCool Foods and Products, and NeoGrowth Credit.

SEDF later sold a controlling stake in Aspada to LGT Group, a private banking and asset management group linked to the Princely House of Liechtenstein. In 2021, LGT rebranded as Lightrock, continuing to focus on impact-oriented investments in India.

OSF is recognized as one of the most significant private financiers for groups advocating human rights and accountable governance globally. Operating in India since 1999, the organization has encountered various restrictions and currently lacks an office in the country.

OSF’s commitment to India has been curtailed by governmental constraints since mid-2016, impacting its ability to provide grants to local NGOs.

George Soros made headlines in February 2023 when he alleged a close connection between Indian Prime Minister Narendra Modi and business magnate Gautam Adani. His comments followed a significant decline in shares of Adani group companies amid allegations of stock manipulation and accounting fraud from the U.S. short-seller Hindenburg. The Adani group disputes these claims, asserting they are a targeted attack on India.

The ruling Bharatiya Janata Party (BJP) has also linked notable Congress members, including Sonia and Rahul Gandhi, to Soros. In December 2024, BJP Parliament member Nishikant Dubey accused the Congress party of collaborating with the Organized Crime and Corruption Reporting Project (OCCRP), a global journalism initiative supported by Soros’s foundation, to disrupt parliamentary functions.

Congress countered these claims in January, suggesting that the BJP was attempting to protect Adani. “If George Soros is indeed orchestrating an anti-India agenda, why is the BJP not working to curtail his influence in India?” questioned Congress spokesperson Supriya Shrinate.