In a major crackdown on fraudulent trade practices threatening the integrity of Kashmir’s renowned handicraft industry, the Directorate of Handicrafts and Handloom, Kashmir, has blacklisted and deregistered The Kashmir Art Bazaar, located in Konchipora, Tangmarg, for selling a machine-made carpet as a hand-knotted GI-certified Kashmiri product.
As per Order No. 10-HD(QC) of 2025 dated July 22, 2025, the showroom sold a carpet for ₹2.55 lakh to a tourist, falsely claiming it was certified by the Indian Institute of Carpet Technology (IICT). A forged QR code resembling an official GI certification label was used to mislead the buyer.
A criminal complaint has been ordered under the Geographical Indications (GI) Act and Bharatiya Nyaya Sanhita, and further legal action is recommended. A team from the Department’s Quality Control wing completed the blacklisting process on-site in Tangmarg.
The fraud came to light after tourist Syed Furqan Alam lodged a complaint with the IICT Director, stating he had paid ₹25,000 in advance. Upon investigation, IICT confirmed the QR code was forged. The Quality Control Division seized the carpet, conducted an inspection, and issued a show-cause notice to the showroom.
In his response, the proprietor denied any wrongdoing, claiming the customer backed out after learning the carpet was not GI-certified. However, photographic evidence and expert verification confirmed that a fake QR label had been pasted on a machine-made carpet.
Citing violations of Sections 6 and 7 of the J&K Registration of Tourist Trade Act, 1978, the Department found the proprietor's reply misleading and declared the act a deliberate fraud to exploit Kashmir’s GI-certified brand. The Director noted in the order that the seller attempted to remove the fake label after being exposed.
The Department has also directed the filing of a formal complaint with the SSP, Tourism Enforcement, and sought investigation into the broader racket of fake GI label usage.
A Department spokesperson warned that such fraudulent practices erode consumer trust and damage the reputation of Kashmiri artisans. "We urge all businesses to strictly avoid misrepresenting machine-made products as handmade. The Department will not hesitate to take strict action including blacklisting and deregistration."
Buyers and tourists are encouraged to report similar incidents to the Handicrafts and Handloom Department, Kashmir.