ED raids beneficiaries of George Soros’s foundation, linked NGOs in Bengaluru
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The ruling BJP has accused George Soros, a billionaire Hungarian-American philanthropist and political activist, of acting against India’s interests | File photo

ED raids beneficiaries of George Soros’s foundation, linked NGOs in Bengaluru

Among the premises searched were those belonging to Human Rights Watch employees and former staffers of Amnesty International


The Enforcement Directorate (ED) conducted searches against some alleged beneficiaries of US billionaire George Soros’s Open Society Foundation (OSF) and some of its linked entities at eight premises in Bengaluru in a FEMA case on Tuesday (March 18).

Among the premises searched were those belonging to Human Rights Watch (HRW) employees and former staffers of Amnesty International, whose India operations shut down in December 2020 after the government froze its bank accounts on the charge of getting illegal foreign funding.

And in 2022, Amnesty India chief Aakar Patel was slapped with a fine Rs 10 crore and the NGO with Rs 51.72 crore for flouting the Foreign Contribution Regulation Act (FCRA), which is related to foreign exchange.

Also read: George Soros has no proven track record of destabilising governments

The case against OSF

The Foreign Exchange Management Act (FEMA) case pertains to alleged foreign direct investment (FDI) being sourced by OSF and the utilisation of these funds by certain beneficiaries in alleged contravention of FEMA guidelines.

Both Amnesty India and HRW reportedly received funds from the OSF in the past. The CBI has filed a charge sheet against the former, while the latter faces an ED complaint.

According to the OSF, it is one of the world’s largest private funders of groups supporting human rights, justice and accountable government.

OSF’s India ops

The OSF began working in India in 1999, offering scholarships and fellowships to students to pursue studies and research at Indian institutes. Its total expenditure for India during 2021 was $406,000, says official data.

“In 2014, we launched an India-specific grant-making programme, supporting local organisations that work in three areas: extending access to medicine; promoting justice system reforms; and strengthening and establishing rights, public services, and community living for people with psychosocial disabilities,” the OSF said earlier.

But in 2016, the Union Home Ministry put it in the Prior Reference Category, thereby restricting it from giving unregulated donations to NGOs in India, over alleged FCRA violation. A plea challenging the move is still pending in Delhi High Court.

“To bypass the restriction, the OSF opened subsidiaries in India and brought in funds in the form of FDI and consultancy fees, and these funds were used to fund activities of the NGOs in contravention of FEMA,” an ED official explained.

The ED is reportedly also examining the end users of other FDI funds brought in by the Soros Economic Development Fund (SEDF) and OSF. Among the entities searched by the agency was Aspada Investments Pvt Ltd, which is the investment adviser/fund manager of SEDF in India and is a wholly owned subsidiary of a Mauritius entity, said the official.

Also read: Tharoor, Hardeep clash over 2009 dinner party with George Soros in the US

BJP’s beef with Soros

The ruling BJP has accused Soros, a billionaire Hungarian-American philanthropist and political activist, of acting against India’s interests. His statements during the Adani-Hindenburg controversy also drew criticism from the party.

According to the saffron party, the organisations that receive funding from the OSF, such as the Organized Crime and Corruption Reporting Project (OCCRP), come up with “anti-India” reports and narratives, which the Congress picks up and promotes to slam the Centre, thus “defaming the country”.

Things came to a head last year when the BJP attacked Rahul Gandhi and his mother Sonia Gandhi, both former Congress presidents, of having links with Soros. The party called Rahul a “traitor” and claimed that Soros and some American agencies were trying to “destabilise India”.

A week later, BJP chief JP Nadda and Congress president Mallikarjun Kharge locked horns over allegations of Sonia’s “links” with the Soros-funded Forum of the Democratic Leaders in Asia Pacific Foundation. Sonia is one of the heads of the forum.

As the BJP sought charges against Sonia under anti-terror laws, the Congress accused it of trying to divert attention from the then-raging Hindenburg row and other “failures” of the government.

(With agency inputs)

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