Peel and clean pearl onions. If you want can use as such or just slice a bit .
Heat oil in a kadai. When the oil is hot, add urad dal, chana dal, hing ,curry leaves and red chillies .Fry on a medium heat, till dal turns golden. Take out on a plate to cool
Add onion to the kadai. Add salt and saute till raw smell from onions vanishes and they are cooked well.
Switch off . Allow to cool .
Transfer the fried ingredients along with salt , tamarind and little jaggery to a mixer jar .. grind to a smooth paste adding little water .
Transfer the onion chutney to a serving bowl .Prepare a tempering using the ingredients mentioned above . Pour it over the chutney .