India Raids George Soros’ Open Society Foundation Offices in Karnataka Over Alleged Foreign Exchange Violations

Bengaluru, Karnataka — March 19, 2025 India’s Enforcement Directorate (ED) conducted raids on Tuesday, March 18, 2025, targeting offices linked to George Soros’ Open Society Foundations (OSF) in Bengaluru, Karnataka. The operation, which unfolded across eight locations in the bustling tech hub, was executed under the Foreign Exchange Management Act (FEMA) of 1999, spotlighting alleged violations involving foreign direct investment (FDI) and the channeling of funds to Indian non-governmental organizations (NGOs). This move has reignited debates over foreign influence in India, with the ruling Bharatiya Janata Party (BJP) framing it as a necessary step to safeguard national interests, while critics question the motives behind the crackdown.

The raids, which began in the early hours of Tuesday, targeted entities such as Rootbridge Services Pvt Ltd in Ashoknagar, ASAR Social Advisor Pvt Ltd in Malleswaram, and a third unnamed company, according to sources familiar with the operation. The ED also searched the premises of Aspada Investments Pvt Ltd, an investment advisor linked to the Soros Economic Development Fund (SEDF), a subsidiary of the OSF network. Preliminary investigations suggest that between 2020-21 and 2023-24, approximately ₹25 crore (roughly $2.9 million USD) was funneled from Soros-backed organizations into various Indian NGOs through what authorities describe as “complex financial arrangements.” An additional ₹300 crore is under scrutiny for its end-use, raising concerns about potential circumvention of India’s stringent foreign funding regulations.

The Open Society Foundations, founded by Hungarian-American billionaire George Soros, have long been a polarizing entity in India. Since entering the country in 1999 with a focus on scholarships and fellowships, OSF has expanded its footprint, supporting civil society groups in areas such as public health, criminal justice reform, and human rights advocacy. By 2014, it launched an India-specific grant-making program, channeling funds to local organizations working on access to medicine, justice system reforms, and rights for people with psychosocial disabilities. However, this expansion has not come without friction.

In 2016, the Indian Ministry of Home Affairs (MHA) placed OSF under the Prior Reference Category (PRC) within the Foreign Contribution (Regulation) Act (FCRA), a designation that requires prior government approval for any funds transferred to Indian entities. This decision followed allegations of “undesirable activities” by the organization, a charge that OSF has consistently denied. The restrictions significantly constrained OSF’s ability to operate freely in India, prompting the organization to explore alternative funding mechanisms—a move that now appears to have triggered the ED’s investigation.

According to ED sources, OSF allegedly bypassed FCRA restrictions by routing funds through subsidiaries in India under the guise of FDI and consultancy fees. These funds, investigators claim, were then redirected to NGOs in a manner that contravenes FEMA guidelines. “The preliminary investigation has revealed a deliberate attempt to disguise donations as legitimate business transactions,” an ED official stated on condition of anonymity. “This is not just a technical violation—it’s a systemic effort to undermine regulatory oversight.”

The raids come against a backdrop of heightened political rhetoric surrounding George Soros and his global network. The BJP, led by Prime Minister Narendra Modi, has repeatedly accused Soros of acting against India’s interests, portraying him as a foreign meddler intent on destabilizing the nation. These accusations gained traction in February 2023, when Soros, speaking ahead of the Munich Security Conference, criticized Modi’s leadership and linked the Adani-Hindenburg controversy—a financial scandal involving alleged stock manipulation by the Adani Group—to broader democratic backsliding in India. “Modi is silent on the subject, but he will have to answer questions from foreign investors and in Parliament,” Soros remarked, drawing a sharp rebuke from BJP leaders.

Union Minister Smriti Irani accused Soros of attempting to “intervene in India’s democratic processes,” while External Affairs Minister S. Jaishankar labeled him “old, rich, opinionated, and dangerous” during a February 2023 event in Sydney. The BJP has also pointed to Soros-funded entities like the Organized Crime and Corruption Reporting Project (OCCRP) as sources of “anti-India” narratives, a charge that escalated in December 2024 when party president J.P. Nadda alleged links between Soros and Congress leader Sonia Gandhi—an accusation the opposition dismissed as a distraction.

This political framing has cast the ED raids as more than a routine enforcement action. For the BJP, it’s a signal of resolve against perceived foreign interference; for critics, it’s a troubling sign of the government’s intolerance toward dissent and civil society. “The timing and scale of this operation suggest it’s as much about politics as it is about law,” said a Bengaluru-based political analyst who requested anonymity. “Soros has become a convenient bogeyman for the ruling party.”

At the heart of the ED’s probe is the intricate web of financial transactions allegedly orchestrated by OSF and its affiliates. The Soros Economic Development Fund, a social impact investment arm of the OSF network, is accused of using entities like Aspada Investment Advisors Pvt Ltd (now Lightrock Investment Advisors Pvt Ltd) to channel funds into India. While Aspada was established in Bengaluru to manage SEDF’s investments, investigators claim it was unaware of ₹300 crore provided to 12 NGOs, suggesting a lack of transparency in how these funds were disbursed.

ASAR Social Advisor Pvt Ltd, incorporated in 2016, reportedly received ₹2.9 crore from SEDF as “service fees.” However, the ED suspects these payments were donations in disguise, intended for NGOs without the requisite FCRA approvals.

Similarly, Rootbridge Services Pvt Ltd is alleged to have acted as an intermediary to bypass regulatory restrictions. “The use of FDI and consultancy fees as a cover for funding NGOs is a clear contravention of FEMA,” the ED official noted. “We’re examining the end-use of these funds to determine the full scope of the violation.”

The investigation also extends to international human rights organizations linked to OSF, including former employees of Amnesty International India—whose operations shut down in 2020 after its bank accounts were frozen—and current staff at Human Rights Watch (HRW). Both groups have historically received OSF funding, and both have faced government scrutiny in India. In 2022, Amnesty India’s chief, Aakar Patel, was fined ₹10 crore for FCRA violations, a case that remains a flashpoint in the debate over foreign-funded NGOs.

As news of the raids spread, reactions poured in from across the political spectrum. BJP supporters hailed the action as a bold move to protect India’s sovereignty. “George Soros has been funding chaos worldwide—it’s time he faced consequences here too,” one user posted on X, echoing a sentiment trending on the platform. Others called for similar actions in the United States, where Soros has long been a lightning rod for conservative criticism.

Opposition leaders, however, questioned the government’s priorities. “While the economy struggles and citizens face real issues, the BJP is busy chasing phantoms,” a Congress spokesperson remarked. OSF itself has not issued an official statement, though a spokesperson was unavailable for comment when contacted by multiple news outlets—a silence that has only fueled speculation.

Globally, the raids have drawn attention to India’s increasingly assertive stance toward foreign entities. The Open Society Foundations, with an annual budget exceeding $1 billion as of 2020, is one of the world’s largest private funders of human rights and justice initiatives. Its operations span over 120 countries, but in recent years, it has faced pushback from governments wary of its influence—most notably in Hungary, where it shuttered its Budapest office in 2018 amid restrictive legislation.

In India, the outcome of this investigation could have far-reaching consequences. A conviction under FEMA could lead to hefty fines, asset seizures, or even a complete ban on OSF activities in the country. More broadly, it may deter other international philanthropies from engaging with Indian civil society, a sector already strained by tightened FCRA regulations. “This sends a chilling message,” the Bengaluru analyst observed. “The space for independent voices is shrinking.”

As the ED continues its probe, all eyes are on the evidence it uncovers—and the government’s next move. The raids in Karnataka mark a significant chapter in the ongoing saga between India and George Soros, blending financial scrutiny with geopolitical intrigue. Whether this is a justified crackdown on illicit funding or a politically motivated assault on a global philanthropist remains a matter of fierce debate.

For now, Bengaluru’s tech corridors—typically abuzz with innovation—have become the unlikely epicenter of a standoff that could redefine India’s relationship with foreign influence. As the investigation unfolds, it promises to reveal not just the intricacies of OSF’s operations, but the broader tensions shaping India’s place in an interconnected world.

This story is developing, with updates expected as new details emerge.

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