My uncle works as a full-time faculty member at NIT Srinagar and has been in frequent contact with the faculty members. From what he has observed only one faculty member till date has been partial in grading. However, he was just a contractual faculty member and did not stay for a long time. He was biased towards Kshmiris both in terms of teaching and grading. Apart from him, he never came across a single teacher who has been biased towards or against locals or non-locals. They don’t care about the cultural background of the students and focus only on academics.
So rest assured, you won’t find any kind of partiality here!