Rub the chicken with turmeric powder and salt. Set aside.
Soak the dried red chilli in hot water until softened. Blend the softened dried chilli, fresh red chilli, garlic, onion and ginger in a blender to a paste.
Heat the oil in a large frypan over medium-high heat. Brown the chicken in the hot oil until golden on all sides. Remove the chicken from the frypan and set aside.
Remove excess oil from the frypan leaving about 1 tablespoon. Cook and stir the chilli paste with the cinnamon, star anise, cloves and cardamom seeds until fragrant. Return the chicken to the frypan.
Stir in the water adding more if needed. Toss in the tomatoes and stir in the tomato sauce and sugar. Bring to a boil then reduce heat to medium-low and simmer until the chicken is no longer pink at the bone and the juices run clear; about 15 minutes. Serve hot.