It depends on what you expect from your engineers and how hierarchy works. It is a cultural thing I guess.

Do you expect engineers to do what you ask them to do, no matter how stupid. If you do and your engineers execute your stupid orders, then you are at fault. It was your job to have common sense, ask the right people, etc... You failed.

Now you may expect your engineers to call you and your stupid plans out, and if they didn't, it is their fault. They should have called you out and they didn't. They failed.

In the west, we usually expect the latter, so engineers should certainly be penalized. In India, I don't know.