The Enforcement Directorate (ED) has raided eight premises in Bengaluru that are linked with the Open Society Foundations (OSF), an organisation founded by U.S. billionaire George Soros.
The action is part of a probe for alleged violations of the Foreign Exchange Management Act (FEMA).
The inquiry is centered on the allegations against foreign direct investment (FDI) that have been obtained by OSF and utilized by some beneficiaries, possibly violating FEMA regulations. In 2016, the Ministry of Home Affairs placed OSF in the "prior reference category," restricting its operations to make unregulated donations to Indian NGOs.
In order to circumvent these prohibitions, it is accused that OSF established subsidiaries in India, routing funds as FDI and consultancy charges for NGO operations, which may amount to a FEMA violation.
Among the entities targeted was Aspada Investments Pvt. Ltd., which is a subsidiary of a Mauritius-based company and acts as the investment advisor to the Soros Economic Development Fund (SEDF) in India.
The ED is probing how FDI funds from Soros-linked firms have been utilized.
These moves follow persistent allegations by the Bharatiya Janata Party (BJP) that Soros is looking to destabilize India's administration.
The ED probe seeks to establish any suspected money laundering and ensure conformity with Indian foreign exchange regulations.
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