Machine-made carpet sold as handmade for Rs 2.5 lakh; seller blacklisted, criminal case ordered

Srinagar, July 23: In a major crackdown on fraudulent trade practices threatening the credibility of Kashmir’s world-famous handicraft industry, the Directorate of Handicrafts and Handloom, Kashmir, has blacklisted and deregistered ‘The Kashmir Art Bazaar’, Tangmarg, after the showroom was found guilty of selling a machine-made carpet for ₹2.55 lakh to a tourist by fraudulently passing it off as a hand-knotted Kashmiri GI-certified product.

As per Order No. 10-HD(QC) of 2025 dated 22.07.2025, issued by Director Handicrafts and Handloom Mussurat Islam, the seller used a fake QR code resembling the official label issued by the Indian Institute of Carpet Technology (IICT) to mislead the buyer into believing the carpet was an authentic GI-certified craft. A formal criminal complaint has been ordered, and further legal proceedings have been recommended under the GI Act and Bharatiya Nyaya Sanhita.

The matter came to light after a tourist complained to IICT, stating he had paid ₹25,000 in advance for a carpet from The Kashmir Art Bazaar, located in Konchipora, Tangmarg, with the total transaction amounting to ₹2.55 lakh. The showroom allegedly presented a certificate and QR code claiming IICT certification.

Upon verification, IICT confirmed the QR label was forged and not issued by their institution. The case was escalated to the department’s Quality Control Division, which conducted a physical inspection, seized the carpet, and issued a show-cause notice to the proprietor.

In his response, the proprietor denied the fraud, claiming the customer declined the purchase once told the carpet wasn’t GI-certified. However, this was contradicted by photographic evidence submitted by the complainant, as well as findings from IICT that confirmed the fake label had been pasted onto a machine-made carpet.

The department termed the reply “totally misleading and unsatisfactory,” and concluded the act was a deliberate attempt to cheat the buyer by exploiting Kashmir’s GI craft reputation. The Director stated in the order that the seller had deliberately created a fake QR label resembling the original GI label of IICT and pasted the same on a machine-made carpet to cheat the concerned tourist.

Citing violations of Sections 6 and 7 of the J&K Registration of Tourist Trade Act, 1978, the Directorate ordered immediate blacklisting and deregistration of the seller.

“Furthermore, it is hereby ordered that a formal complaint shall be filed against the proprietor of The Kashmir Art Bazaar with the office of the Senior Superintendent of Police, Tourism Enforcement, TRC, for initiating stringent action against him for pasting a fake QR code purportedly in the name of IICT, and requesting to investigate the network which seems to run this racket of pasting fake GI QR labels on machine-made items.”

The order further observed that once the seller realised the fraud had been detected, he attempted to remove the fake QR label from the carpet to cover up the malpractice. However, evidence provided by the complainant and expert verification from IICT confirmed the wrongdoing.

The department noted that such acts not only violate consumer trust but directly undermine the GI-certified identity of Kashmiri craft, threatening the livelihood of thousands of artisans and weavers.