ED sources said preliminary investigations revealed that OSF was placed under ‘prior reference category’ by MHA in 2016, thereby restricting it from giving unregulated donations to NGOs in India.
“In order to bypass this restriction, OSF had subsidiaries in India and brought in funds in the form of FDI and consultancy fees and these funds have been used to fund activities of NGOs which is a FEMA contravention,” an official said.
The agency is also examining the end use of other FDI funds brought in by Soros Economic Development Fund. The searches by ED also include searches on M/s Aspada Investments Pvt Ltd, which is the investment advisor/fund manager of SEDF in India and is a wholly owned subsidiary of a Mauritius entity, people in the know said.
