Soak the dry red chilies and garlic separately in water for about 30 minutes.
Peel and finely chop the garlic. Drain the chilies and grind them into a paste using a little water.
Heat oil in a pan. Add the chopped garlic and sauté lightly until fragrant (do not brown).
Add the chili paste and keep stirring.
Now add salt, sugar, and tomato ketchup. Mix well.
Once the mixture comes to a boil, add vinegar and Kashmiri red chili powder. Stir properly.
Turn off the heat and allow the chutney to cool completely.
Store in an airtight jar. This chutney stays good for 10–15 days.