You are faking it! KVIC says Fabindia misleading customers with fake ‘khadi’, seeks Rs 525 crore compensation
The battle of ‘khadi’ between Fabindia and KVIC has taken a new turn with the Khadi commission sending a Rs 525-crore notice to the apparel giant.
According to latest media reports, the Khadi and Village Industries Commission has sent a legal notice to Fabindia accusing the company of misleading the customers. Fabindia is using factory-made cotton and selling it as khadi clothes, the KVIC notice said.
The KVIC has sought a compensation of Rs 525 crore from Fabindia for an unauthorised use of for its the ethnic apparel business.
Law firm Kochhar & Company issued notice to FabIndia Overseas Private Limited on January 29, a Monday Control report said.
The Union Ministry of Micro, Small and Medium Enterprises in a 2013 Khadi Mark Regulations has notified that only KVIC is authorized to grant Khadi Mark registration. The regulation says no textile shall be sold or otherwise traded by any person or certified Khadi institution as “Khadi” or “Khadi products” in any form or manner without it bearing a “Khadi Mark” tag or label issued by a Committee under the regulation.
However, this is not for the first time that KVIC and Fabindia are sparring over khadi. In 2013, KVIC sent a legal notice to Fabindia over violation of the khadi regulation. In 2017 again, KVIC discovered that Fabinida was still using the khadi tags for its clothes. In a February notice, the KVIC asked asking Fabindia to immediately cease and desist from unauthorised use, sale, advertisement and promotion of the products bearing the khadi mark.
Meanwhile, in a curt response, Fabindia has called the latest Rs 525 crore compensation notice as ‘baseless’.
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