eMudhra stock is down 20% [1] There is a real financial consequence of bad posture. I am confident they were passing the compliances; everything was 100%.
We have been operating in India for a while. People do not take security, processes, etc., seriously in India. At least most of the organizations do not. Most likely, a human error caused the incident, and guardrails could have prevented it.
The sad part is that even after a major incident like this, the org is probably not going to invest in tools and processes to improve their posture. They will only do what is necessary to meet compliance. This is just the nature of a market driven by low margins and low-quality vendors.
There is no malice here by the org; it is just unfortunate.