Enforcement Directorate conducts searches in Bangalore under FEMA
The agency said OSF established companies in India and brought in money in the form of foreign direct investment (FDI) and consultancy fees to get around this limit.
With the Search of eight sites in Bangalore under the Foreign Exchange Management Act (FEMA), the Enforcement Directorate (ED) is looking into FEMA contraventions by non-governmental organisations, Soros Economic Development Fund (EDF) and Open Society Foundations (OSF).
According to ED, the Ministry of Home Affairs placed Soros OSF under the Prior Reference Category in 2016, therefore limiting its ability to provide unbridled donations to Indian NGOs. The agency said OSF established companies in India and brought in money in the form of foreign direct investment (FDI) and consultancy fees to get around this limit.
ED claimed that these monies had been used for NGO operations, so violating FEMA policies. ED is also looking at the ultimate use for further FDI brought in by OSF and Soros EDF.
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