The Khadi Tur­moil

Apparel - - Market Watch -

Khadi In­dia has threat­ened to sue Fabindia, a chain of eth­nic wear re­tail out­lets, for al­legedly in­dulging in “un­fair trade prac­tices” by us­ing and sell­ing its cot­ton prod­ucts unau­tho­ris­edly un­der its reg­is­tered brand name “Khadi”. Khadi & Vil­lage In­dus­tries Com­mis­sion (KVIC) has sent a le­gal no­tice to Fabindia Over­seas Pvt Ltd ask­ing it to im­me­di­ately stop us­ing the khadi word from all its cot­ton prod­ucts and re­move dis­play ban­ners from its show­rooms im­me­di­ately, al­leg­ing that Khadi In­dia’s brand name was un­law­fully used to mis­lead and con­fuse the con­sumers.

“You are called upon to ex­plain your po­si­tion in the above mat­ter within 15 days from the date of re­ceipt of this no­tice, fail­ing which the KVIC will be con­strained to pro­ceed against your com­pany as per law for the vi­o­la­tion of Khadi Mark Reg­u­la­tion and pay­ment or in­ci­den­tal dam­ages for the losses caused to KVIC by Fabindia,” the Fe­bru­ary 8 le­gal no­tice ad­dressed to Fabindia’s New Delhi-based CEO said.

Jus­ti­fy­ing the le­gal no­tice, KVIC Chair­man V K Sax­ena said, “the KVIC was very keen to pro­tect its rep­u­ta­tion and would take strin­gent mea­sures against those who vi­o­lated rules and reg­u­la­tions that have been framed for the ben­e­fit of ru­ral ar­ti­sans at­tached to it.”

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