Indian Authorities Probe Soros-Linked Foundations Over Alleged Financial Irregularities

India’s financial crime watchdog, the Enforcement Directorate (ED), launched a series of coordinated raids on Tuesday across eight different locations in Bengaluru. The action is part of an ongoing investigation into suspected violations of the Foreign Exchange Management Act (FEMA), with a particular focus on entities linked to billionaire philanthropist George Soros.

The probe centers on the activities of the Open Society Foundations (OSF) and its economic development arm, the Soros Economic Development Fund (SEDF). According to officials familiar with the matter, the investigation stems from concerns that funds provided by these organizations may have circumvented Indian regulations and were used to support non-governmental organizations (NGOs) in a manner inconsistent with FEMA rules.

One enforcement official, speaking anonymously, stated: “We are investigating how funds categorized as foreign direct investment (FDI) and consultancy fees were brought into India, potentially in a deliberate attempt to bypass regulations imposed by the Ministry of Home Affairs (MHA).”

The MHA reportedly flagged OSF in 2016, placing it on a watch list that restricts unregulated donations to Indian NGOs. Despite this, OSF is alleged to have established subsidiaries and alternative financial channels to continue funding civil society efforts in the country. Preliminary findings suggest these funds were then redirected to NGOs, prompting questions about compliance and intent.

Though OSF has been active in India since 1999, reports indicate that it does not maintain a formal office within the country. The ED believes that nearly $3 billion may have been funneled through various routes into India by Soros-affiliated entities. The current operation seeks to trace how these funds were distributed and whether they supported activities contrary to Indian law.

In addition to the domestic investigation, concerns over Soros’ global influence have also intensified in the United States. Last year, the Federal Communications Commission (FCC), under the Biden administration, approved a deal enabling Soros Fund Management to acquire a significant stake in Audacy Inc., one of the largest radio station networks in the U.S.

The approval, which came in the lead-up to the 2024 presidential election, allowed Soros to gain influence over more than 200 radio stations in 40 key markets, potentially reaching an estimated 165 million listeners. This move drew sharp criticism from Republican lawmakers and raised questions over transparency and process.

Representative James Comer (R-Ky.), chair of the House Oversight Committee, along with Rep. Nick Langworthy (R-N.Y.), accused the FCC of bypassing its typical review procedures to fast-track the deal. Their concerns focus primarily on foreign ownership and the potential for political messaging to be shaped by outside interests—particularly given Soros’ history of backing progressive political causes.

The FCC’s decision drew further scrutiny due to the fact that Soros’ investment group reportedly acquired over $400 million in Audacy debt as part of a bankruptcy restructuring deal, making him a major stakeholder in the media company.

Brendan Carr, one of the FCC’s Republican commissioners, echoed these concerns. In a meeting with GOP members of the Republican Study Committee earlier this year, Carr criticized the agency’s approach, claiming it could create a dangerous precedent by permitting foreign-influenced entities to control American media outlets.

“The transaction exceeds the traditional 25 percent foreign ownership threshold,” Carr noted. “It appears the FCC is poised to create a shortcut not previously used in such cases.”

Back in India, the outcome of the ED investigation could have broader ramifications, not only for the operations of international philanthropic organizations but also for the regulatory oversight of foreign capital entering the country under the banner of civil society support.

Officials emphasized that Tuesday’s raids were just the beginning of a larger inquiry. “There are still many layers to peel back,” one source said. “We are closely examining the financial flows, the beneficiaries, and any potential misuse of these funds.”

As the probe develops, OSF has yet to publicly comment on the allegations. Meanwhile, scrutiny continues to grow on both sides of the globe over the intersection of philanthropy, influence, and regulation in the digital age.