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