Sandeep Singh, a father of two, was with his friend Baldey Singh when he was hit by a pickup truck late on Tuesday night.
Sandeep was rushed to the hospital where he is in a critical condition.
Rights group 'Sikh Coalition' has called for a hate crime investigation into the incident.
Baldey told ABC News that the two men had just finished dinner at a restaurant nearby and were standing on the street when the driver of the truck pulled up near them.
Baldey said the driver yelled a racial slur at him and his friend. Sandeep, annoyed at the driver, hit the truck with his hand. The driver then pulled forward, stopped, and got out of the vehicle, holding something in his hand.
Baldey recalls that they became "concerned, afraid, and felt threatened" by the driver's aggressive behaviour.
The two men and the driver got into an argument following which the driver got back in his truck. However, Sandeep wanted the man to stop and call the police. Sandeep then stepped in front of the pickup truck when the driver started his truck and ran over him.
The report said Sandeep was dragged roughly 30 feet down the street and his body finally came loose from the truck, which kept on going.
Footage from the survellaince camera on the street showed the men getting into an argument and then a few minutes later Sandeep trying to stop the pick-up truck from fleeing the scene. He is then seeing being hit by the truck and dragged some distance.