India Investigates Foreign Funding Linked to Soros Foundations Over Alleged Policy Violations

India’s Enforcement Directorate (ED) launched an investigation this week into foreign exchange practices involving the Open Society Foundations (OSF), an organization founded by investor George Soros, and its impact investment arm, the Soros Economic Development Fund (SEDF).

According to Indian news outlets, the ED conducted searches at eight locations across Bengaluru as part of a probe into possible violations of the Foreign Exchange Management Act (FEMA). Authorities allege that funds sent to India through foreign direct investment (FDI) may have been diverted or misused by certain recipients.

Officials say OSF and SEDF are being scrutinized for allegedly bypassing local regulations by channeling funds through consulting arrangements and affiliated entities, despite having been placed under restrictions by India’s Ministry of Home Affairs in 2016. That move had limited the organization’s ability to fund Indian non-governmental organizations (NGOs) without prior government approval.

“Funds were brought into India under the guise of consultancy payments and investment, but these were ultimately used to support NGO activities, which falls under FEMA contravention,” one official was quoted as saying by Indian media.

Since its launch in 1999, OSF has funded various civil society projects across India, but does not maintain a physical office in the country. The recent inquiry follows increased scrutiny in India over foreign-funded organizations, particularly those involved in advocacy or social policy initiatives.

In a related development in the U.S., George Soros’ investments in media have also drawn attention. Last year, Soros Fund Management was approved to acquire a significant financial stake in Audacy Inc., which owns more than 200 radio stations across 40 U.S. markets. The deal was part of a Chapter 11 restructuring and valued at $415 million in debt.

The Federal Communications Commission (FCC) fast-tracked the approval ahead of the 2024 election cycle. The move prompted questions from Republican lawmakers, who voiced concerns about the pace of the decision and the potential implications of foreign influence in American broadcasting. The FCC typically reviews deals involving more than 25% foreign ownership under strict guidelines.

FCC Commissioner Brendan Carr has since briefed lawmakers on the matter, confirming the deal involves foreign ownership above standard thresholds. Critics have argued that bypassing full reviews could set a new precedent for media acquisitions, while others emphasize that due diligence should not be compromised regardless of the investor’s identity.

As both India and the U.S. continue their respective reviews of Soros-linked operations, questions remain about how global funding and investments intersect with national regulations—particularly when it involves media, civil society, and public policy.