KVIC Seeks R525 Crore in Com­pen­sa­tion from Fabindia for Al­legedly Sell­ing ‘False Khadi’

Apparel - - Market Watch -

Fabindia has been ac­cused of sell­ing ‘fake khadi’ by the Khadi and Vil­lage In­dus­tries Com­mis­sion (KVIC), which has now de­manded R525 crore as com­pen­sa­tion from the eth­nic retail chain, af­ter shoot­ing a se­ries of le­gal no­tices. The le­gal no­tice was is­sued to Fabindia at the end of Jan­uary. KVIC has asked Fabindia to pay fi­nan­cial dam­ages for mak­ing a profit on items, us­ing the trade­mark ‘Khadi’ and the Khadi mark. It has also laid charges against them of caus­ing heavy fi­nan­cial loss to Khadi artists and ar­ti­sans. KVIC de­manded com­pen­sa­tion from Fabindia for caus­ing ‘‘ir­repara­ble loss, harm, and dam­age’’ to the rep­u­ta­tion and good­will as­so­ci­ated with the ‘Khadi’ trade­mark. While de­mand for com­pen­sa­tion has emerged for the first time, KVIC had no­ti­fied Fabindia about the ‘il­le­gal us­age’ as early as July 2015, apart from ac­cus­ing the retail chain of sell­ing prod­ucts bear­ing a Khadi mark that was sim­i­lar to its own trade­mark. KVIC lab-tested sam­ples col­lected from Fabindia mul­ti­ple times, which proved that the retail chain was sell­ing fac­tory-made cot­ton gar­ments in the name of Khadi.

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