The present research paper reports on the suitable use of Geographical Indications (GIs) in safeguarding Indian traditional handicrafts through a case study of Kolhapuri sandals. This protective 12th century handmade sandal was qualified as GI in 2019. Their cultural and legislative, as well as economunderlinestance underline the paper, particularly in the wake of a scandal that came with luxury fashion house Prada. In June 2025, when Prada presented its leather sandals collection in its Milan show that looked significantly similar to Indian Kolhapuri chappals, the Italian brand, failed to credit it with the country of origin, but charged a higher price of a lakh rupee and more. Legal and cultural response the controversy that followed the incident turned into legal and cultural actions of the artisans and state agencies culminating into legal notices, claim of 500 crore and PIL in the Bombay High Court. This article provides a critical review on the legal standing of the activities of an organization like Prada that is whether its activities are legally considered as GI infringement under GI Act, 1999 and the efficacy of the various laws on protection of the traditional knowledge based on design. It also addresses the ethical issues of cultural appropriation, and the commercialization of indigenous craft around the world. Lastly, it proposes legal changes, and business partnerships that can be protective yet international. The episode between Kolhapuri and Prada is a test case vital to the analysis of the changing place of GIs in the globalized economy.