SRINAGAR, July 23, 2025 – In a decisive move to protect the authenticity of Kashmir’s famed handicraft industry, the Directorate of Handicrafts and Handloom, Kashmir, has blacklisted and deregistered a showroom — The Kashmir Art Bazaar, Tangmarg — for selling a machine-made carpet to a tourist by falsely claiming it as a hand-knotted, GI-certified Kashmiri product.
According to Order No. 10-HD(QC) of 2025, issued by the Director Handicrafts and Handloom on July 22, the fraudulent sale involved a forged QR label mimicking the official GI certification mark issued by the Indian Institute of Carpet Technology (IICT).
A formal criminal case has been ordered under the Geographical Indication (GI) Act and relevant sections of the Bharatiya Nyaya Sanhita. A team from the department’s Quality Control Wing also completed on-site blacklisting of the showroom in Konchipora, Tangmarg.
How the Fraud Was Uncovered
The scam came to light after tourist Syed Furqan Alam filed a complaint with the Director of IICT, Srinagar. He alleged he had paid ₹25,000 in advance for a carpet worth ₹2.55 lakh from The Kashmir Art Bazaar, which was claimed to be GI-certified. The showroom provided a certificate and QR code to support the claim.
Upon verification, IICT found the QR label to be forged. The Department launched an investigation, seized the carpet, and issued a show-cause notice to the seller. In response, the proprietor denied wrongdoing, claiming the customer was informed the item wasn’t GI-certified and had backed out. However, photographic evidence from the complainant and IICT’s technical confirmation exposed the seller’s attempt to remove the fake QR label post-complaint.
Department’s Findings and Action
Terming the response as “misleading and unsatisfactory”, the Directorate concluded that the act was a deliberate attempt to cheat the customer by abusing the reputation of Kashmir’s GI crafts.
Citing violations under Sections 6 and 7 of the J&K Registration of Tourist Trade Act, 1978, the Department ordered immediate blacklisting and deregistration of the seller. The Directorate has also directed the Senior Superintendent of Police, Tourism Enforcement, Kashmir, to file a criminal complaint and investigate the larger network behind the racket of fake GI labeling.
Stern Warning to Traders
The Department strongly warned traders and showroom owners against misrepresenting machine-made goods as GI-certified crafts. “Such deceptive practices not only violate consumer trust but endanger the identity and livelihoods of thousands of artisans and weavers across Kashmir,” a department spokesperson said.
Buyers and tourists have been urged to report any suspicious sales of machine-made items being passed off as handmade to the Handicrafts and Handloom Department, Kashmir.
