A better approach would have been to deport Khobragade while still offering protection/visas to the servant and her family. Quite a few Indians have been arrested on similar charges in the past without serious uproar, it's the fact that a consular official was treated this way. The US tends to be rather lax in its definition of "diplomatic immunity" when it comes to their benefit (see Raymond Davis) so such strictness is very hypocritical. The impression I get as a neutral observer is that the focus of the action was to punish the alleged guilty rather than try and achieve recourse for the alleged victim.
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