Heat the oil in a pot over medium heat. Add the onion and saute until golden. Add the garlic and saute for 1 minute or until fragrant. Increase heat to medium-high; add chicken and saute until no longer pink. Reduce heat to medium. Add the turmeric powder and stir gently. Add 1 1/2 cups water. Cover the pot and cook until completely cooked and chicken starts to fall apart, about 70-75 minutes, stirring occasionally. Add more water if needed.
Meanwhile in a small bowl mix together the soy sauce, balsamic vinegar, crushed red pepper, chili powder and sugar. Add the sauce mixture into the chicken. Cover the pot and cook until thickened, about 10 minutes.