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Hinduja family members sentenced to jail for exploiting domestic staff

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Four members of the multi-billionaire Hinduja clan, the UK’s wealthiest family, have been convicted of exploiting their domestic staff and sentenced to lengthy jail terms by a court in Geneva.

In a ruling on Friday, a panel of three judges found Prakash Hinduja, his wife Kamal, as well as their son Ajay and his wife, Namrata, guilty of serious employment offences related to Indian staff.

“They spent more on [their] dog than one of their servants,” Genevan public prosecutor Yves Bertossa told the court this week in a case that shed a harsh light on the punishing conditions to which one of the world’s wealthiest families subjected their staff.

The court cleared the four Hindujas of the more serious charge of human trafficking that had been brought by the authorities.

The domestic staff at the centre of the case, who were mostly illiterate, had been flown in directly from India to work at the family’s palatial home in Switzerland.

In a damning verdict, presiding judge Sabina Mascotto said the Hindujas had no excuses for their behaviour.

“[The workers] were exploited given their situation in India was so precarious and they were exploited as they didn’t know the language, had their passports confiscated and were only ever paid every 3-6 months,” said Mascotto.

“The four Hindujas knew the vulnerabilities of the staff and knew what the rules were in Switzerland, as they all were Swiss citizens and Ajay was educated in Switzerland,” she added.

The court nevertheless ruled that the employees had known the terms they were signing up for when they entered the family’s service in India and therefore could not have been said to be trafficked.

Reflecting the seriousness of the offences the four were convicted of, Prakash and Kamal were sentenced to four-and-a-half years in prison. Ajay and Namrata received a four-year sentence.

An appeal process could take years in Switzerland’s often slow-moving justice system, under which a judgment is not considered final until all avenues of appeal have been exhausted. The four Hinduja family members were not present at the court for the verdict.

Romain Jordan, a lawyer for the family, said his clients were “appalled and disappointed” by the court’s decision.

“Importantly, the family has been acquitted of human trafficking charges,” he said.

An appeal has already been filed. “Under Swiss law, the presumption of innocence is paramount until an adverse final judgment by the highest adjudicating authority is enforced,” Jordan emphasised.

Prakash is the second of three brothers behind the Hinduja Group, a sprawling multinational conglomerate with interests in everything from cars and petrochemicals to banking and armaments.

His older brothers Gopichand and Srichand settled in London in the 1980s and made it the centre of the group’s affairs. Gopichand, worth an estimated £35bn, is the UK’s richest man. Srichand died last May.

Prakash settled in Switzerland, from where he runs the family bank. He was made a Swiss citizen in 2000. His younger brother, Ashok, runs the Hinduja Group’s Indian interests.

In a week of explosive revelations, Geneva’s public prosecutor accused Prakash, Kamal, Ajay and Namrata of treating their employees as indentured servants.

They were accused of keeping the staff trapped at a villa in the ultra-exclusive Geneva lakeside suburb of Cologny, where they slept in substandard conditions in basement rooms.

The workers were paid less than one-tenth of the salary they were entitled to under Swiss law, according to the prosecutor Bertossa.

One servant was paid just 7 Swiss francs a day, and worked as many as 18 hours, 7 days a week, Bertossa alleged. The family dog had more than three times as much spent on it, according to documents seized by police and presented to the court.

As well as attending to the family at Cologny, the retinue of staff travelled with the Hindujas to their ski chalet in the Swiss alps and villa on the Cote d’Azur, but otherwise had almost no personal freedom, Bertossa said.

Their passports were taken from them. They were paid in rupees into Indian bank accounts, which they did not have access to while in Switzerland, he said.

Giving testimony, members of the family denied the allegations against them, and said their staff had been like “members of the family.”

Ajay’s lawyer, Yael Hayat, told the court that the prosecutor’s claims about employees were exaggerated. “When they sit down to watch a movie with the kids, can that be considered work?” she asked the court to consider.

A civil case brought against the family on behalf of their staff was settled for an undisclosed sum last week.



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John Cena announces retirement from in-ring competition in 2025, WWE says By Reuters

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© Reuters. FILE PHOTO: Apr 1, 2023; inglewood, CA, USA; John Cena during Wrestlemania Night 1 at SoFi Stadium. Mandatory Credit: Joe Camporeale-USA TODAY Sports/File Photo

(Reuters) – U.S. wrestling superstar and actor John Cena announced retirement from in-ring competition in 2025, World Wrestling (NYSE:) Entertainment (WWE) said in a post on social media platform X on Saturday.

“John Cena announces retirement from in-ring competition, stating that WrestleMania 41 in Las Vegas will be his last,” WWE said.





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Recession indicator is close to sounding the alarm as unemployment rises

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While unemployment is still historically low, its rate of increase could be a sign of deteriorating economic conditions. That’s where the so-called Sahm Rule comes in.

It says that when the three-month moving average of the jobless rate rises by at least a half-percentage point from its low during the previous 12 months, then a recession has started. This rule would have signaled every recession since 1970.

Based on the latest unemployment figures from the Labor Department’s monthly report on Friday, the gap between the two has expanded to 0.43 in June from 0.37 in May.

It’s now at the highest level since March 2021, when the economy was still recovering from the pandemic-induced crash.

The creator of the rule, Claudia Sahm, was an economist at the Federal Reserve and is now chief economist at New Century Advisors. She has previously explained that even from low levels a rising unemployment rate can set off a negative feedback loop that leads to a recession.

“When workers lose paychecks, they cut back on spending, and as businesses lose customers, they need fewer workers, and so on,” she wrote in a Bloomberg opinion column in November, adding that once this feedback loop starts, it is usually self-reinforcing and accelerates.

But she also said the pandemic may have caused so many disruptions in the economy and the labor market that indicators like the Sahm Rule that are based on unemployment may not be as accurate right now.

A few weeks ago, however, Sahm told CNBC that the Federal Reserve risks sending the economy into a recession by continuing to hold off on rate cuts.

“My baseline is not recession,” she said on June 18. “But it’s a real risk, and I do not understand why the Fed is pushing that risk. I’m not sure what they’re waiting for.”

That came days after the Fed’s June policy meeting when central bankers kept rates steady after holding them at 5.25%-5.5%—the highest since 2001—since July 2023.

The Fed meets again at the end of this month and is expected to remain on hold, but odds are rising that a cut could happen in September.

Sahm also said last month that the Fed Chair Jerome Powell’s stated preference to wait for a deterioration in job gains is a mistake and that policymakers should instead focus on the rate of change in the labor market.

“We’ve gone into recession with all different levels of unemployment,” she explained. “These dynamics feed on themselves. If people lose their jobs, they stop spending, [and] more people lose jobs.”

Meanwhile, Wall Street has had a more sanguine view of the economy, citing last year’s widespread recession predictions that proved wrong as well as the AI boom that’s helping to fuel a wave of investment and earnings growth.

Last month, Neuberger Berman senior portfolio manager Steve Eisman also pointed to the boost in infrastructure spending.

“We’re just powering through, and I think the only conclusion you can reach is that the U.S. economy is more dynamic than it’s ever been in its history,” he told CNBC.

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Joe Biden rejects calls to quit presidential race as clamour grows for his exit

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Joe Biden faced a growing clamour among Democrats to drop out of the 2024 presidential race on the weekend despite stepped-up public appearances aimed at proving he is mentally fit to take on Donald Trump.

Biden has two campaign events in the swing state of Pennsylvania on Sunday after a high-stakes primetime interview on Friday night failed to reassure fellow Democrats panicked by the 81-year-old’s shaky debate performance last week.

“It’s the worst possible outcome,” one veteran Democratic operative told the Financial Times after Biden’s interview aired on ABC News. “Not nearly strong enough to make us feel better, but not weak enough to convince Jill [Biden] to urge him to pull the plug.”

David Axelrod, the architect of Barack Obama’s successful 2008 presidential campaign, warned after the interview that Biden was “dangerously out-of-touch with the concerns people have about his capacities moving forward and his standing in this race”.

The roll call of Democrats calling for Biden to withdraw was joined on Saturday by Angie Craig, a House member from a swing district in Minnesota.

“President Biden is a good man & I appreciate his lifetime of service,” Craig wrote on social media platform X.

“But I believe he should step aside for the next generation of leadership. The stakes are too high.”

NBC News reported that the Democratic leader in the House, Hakeem Jeffries, was set to discuss the president’s candidacy among colleagues on Sunday.

Throughout the roughly 20-minute interview on ABC, Biden rejected opinion polls that show him trailing Trump both nationwide and in the pivotal swing states that will determine the election outcome.

“I don’t think anybody is more qualified to be president or win this race than me,” Biden said.

The president also dodged questions about whether he would be willing to undergo cognitive and neurological testing, at one point replying: “I have a cognitive test every single day, every day I have that test.”

Biden added: “You know, not only am I campaigning, I am running the world . . . for example, today, before I came out here, I am on the phone with the prime minister of, well anyway, I shouldn’t get into the detail, with Netanyahu, I’m on the phone with the new prime minister of England.” The president appeared to be referencing a call he had on Thursday with Israeli Prime Minister Benjamin Netanyahu, and another on Friday with new UK Prime Minister Sir Keir Starmer.

In another exchange, Biden appeared to suggest that nobody would be able to convince him to suspend his re-election bid, saying: “If the Lord almighty tells me to, I might do that.”

“It seems that the only person who still believes Biden should still be in the race is Biden,” said one top Democratic donor. Another Democratic donor called the interview “pathetic”, while another said it was “too little, too late”.

Many Democratic lawmakers, party operatives and influential donors have privately called for Biden to suspend his re-election campaign after last week’s debate reignited questions about the president’s age and fitness for office. But more critics have been willing to go public with their concerns in recent days.

Maura Healey, the Democratic governor of Massachusetts, became the first state governor to suggest Biden step aside on Friday. Healey was among governors who met the president for emergency talks at the White House this week.

She issued a statement urging him to “listen to the American people and carefully evaluate whether he remains our best hope to defeat Donald Trump”.

Meanwhile, the Washington Post reported on Friday that Mark Warner, a senator from Virginia, was working to assemble a group of Democratic senators to ask Biden to exit the race. A spokesperson for Warner did not respond to a request for comment.

Earlier on Friday, Biden delivered a defiant speech in Wisconsin, a swing state, telling a crowd of supporters that he would not bow to the mounting pressure on him to quit.

“Let me say this as clearly as I can: I’m staying in the race. I’ll beat Donald Trump.”

Reporters travelling with Biden noted several people standing outside the venue where he spoke in Wisconsin holding signs urging him to “bow out” and “pass the torch”. Another sign read: “Give it up, Joe.”

His campaign on Friday said it would spend another $50mn on advertising in the month of July, including for ad spots that would run during this month’s Republican National Convention and the Olympics.

Biden’s vice-president Kamala Harris, California governor Gavin Newsom and Michigan governor Gretchen Whitmer — all seen as possible candidates should Biden step aside — have remained publicly loyal to the president’s campaign. At a July 4 celebration at the White House on Thursday evening, Biden joined hands with his vice-president as some people in the crowd chanted, “four more years”.

But other prominent Democrats are more reluctant to share the stage with the president. When Biden visited Wisconsin on Friday, he was joined by the state’s Democratic governor, Tony Evers — but not Tammy Baldwin, the state’s Democratic senator, who is polling far ahead of the president.

The latest FiveThirtyEight polling average shows Trump leading Biden by just shy of two points in Wisconsin.

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