WARNING! Do NOT book anything with DTTDC in Delhi!!!

My wife and I went to India for the first time in November and we were very suspicious of anybody and anything from the beginning. Before settling for a hotel in Delhi we wanted to consult the official tourism office to see if they could recommend us something not too expensive. On the Delhi map that you can get at the Indira Gandhi airport, there is an 'i' for information on the N block at Connaught Place. We compared this with the map in the Lonely Planet and here the entry was "Delhi Tourism & Transport Development Corporation (DTTDC)."
Consequently, we assumed that it was the right address to go to and we told our taxi driver to take us straight there. We were welcomed by a guy named Nazir ("Naz"), who told us that he mostly lived in Canada, which his Canadian accent confirmed. He offered us tea and started to make nice conversation - the usual. When we asked him to find us a good, inexpensive hotel and showed him some suggestions in the LP, he told us that the prices had gone up dramatically and to prove this, he called some of them and asked for the room rates. Sure enough, it seemed that the rates had doubled. He showed us the website of a really nice hotel, which he could book for us for only Rs 2000 (instead of Rs 2500). This still seemed at lot to us, but then he started talking about our travel plans and suggested we go to "the Himalayas" to stay on a houseboat.
Had we read the LP thoroughly enough, our alarm bells should have gone off right then: it talks a lot about so called "houseboat hassles" and strongly advises against booking anything like that from Delhi. It must have been the price that made us sign without even knowing that this place was actually a lake in Kashmir, a region that most embassies advise against visiting and where our travel insurance wasn't valid because of ongoing violence in the region.
Anyway, he said if we booked this "package" with him, it would include one night in Delhi in that nice hotel and three nights on the houseboat, two meals a day included - as well as the flight there and a driver at our service all the time. All this for €150 per person. When I asked him where the catch was, he got slightly irritated at me for questioning his trustworthiness. So we signed but soon realized that we still had no idea where exactly he was sending us. On the receipt it only said "flight to the Himalayas." When we called him from the hotel to ask for the name of the city we were going to, he got annoyed and told us to come by, so he would show us on a map. When we realized it was in Kashmir we got worried but Naz said, it's totally safe, why else would he send us there?
When we got to Srinagar (Kashmir), we were picked up by Naz's associate Mustafa, who told us that he was his cousin. In fact, they looked almost identical (my wife still thinks they are one and the same person). After showing us our houseboat on Nageen Lake, he took us to his office in a hotel, supposedly to give us "information." Instead, he tried to plan our entire India trip for us, for $900 for 4 weeks. After we told him we didn't want to travel with a travel agency, all we wanted was to go to Dharamsala after this, he still tried to convince us that it would be so much cheaper, we wouldn't get reservations on the trains without him, etc. etc. He told us to check for ourselves on the computer.
But when I looked for a Srinagar-Dharamsala connection, he flipped out and yelled at me I wouldn't trust him and only he was our travel agent. He said if we didn't do the India trip with him, the trip only to Dharamsala would cost $160 and he would have to book it for us now or else there wouldn't be any available seats. So I tried to buy time, saying we would think about it and tell him tomorrow, and that we would want to visit a friend first. He got big eyes and asked "What friend?!" I told him, a guy I knew from college that did an exchange year. "You met him on the plane!!!!" he burst out. This was actually true. We had met a guy in the airport and told him that we had booked this trip with a travel agency and he had told us that it wasn't a good idea and if we had any trouble we should call him. So now Mustafa called me a "fucking liar" and asked my wife why did she marry such a jerk, and he threw my water bottle around. My wife was really scared and started crying. "That's your fault because you fucking lied to me! That's not how you do business!" Mustafa told me. He also said that he had so much power, he could cancel our flight back home and that we would see "how dangerous" he could be!
At that point, my wife didn't care about the insane price for the trip to Dharamsala and just wanted to get out of there. So we paid him the $160... for a shared taxi to Jammu and a train ride to Pathankot, probably worth $20 altogether. From there we would have to take a bus to Dharamsala, which we would pay ourselves (of course he didn't tell us that right then). When I asked him for a receipt, he said he was too angry to give me one now, he would give it to us the in the morning. Also, he asked for our receipt that we had from Delhi. We asked him to give us a copy of it, but he said he would give it to us later, since he didn't feel like it now. Naturally, we never got anything.
That night, we left the light on in our room and I didn't sleep until it started getting light out. That's how scared we were because Mustafa was obviously a maniac, capable of anything. We imagined that he would try to kill us because we didn't accept his travel offers and could harm his business by telling people what happened. It didn't help that we heard gunshots and explosions during the night. We later learned that two Indian army soldiers were killed my militants while we were there.
So much for a relaxing vacation!
The Lonely Planet has to take out the DTTDC from its next issue and should warn against doing anything with them.