Heat oil in a pan; add red chillies and fry for 30 seconds on a low flame.
Add chopped capsicum, onion & garlic and sauté it well till onions and capsicum turn soft. Switch off the stove.
Allow it to cool and transfer to a mixer jar and add tamarind and salt in to it.
Grind well to a smooth paste. You can serve the chutney with Idli, Dosa or Rotti..