Fabindia in Process of Re­mov­ing Khadi Tags from its Prod­ucts

Says it has re­ceived a le­gal no­tice from KVIC dated Feb 8 over use of ‘Khadi’ word with­out per­mis­sion

The Economic Times - - Companies: Pursuit Of Profit - Shamb­havi.Anand@ times­group.com

New Delhi: Fabindia, the re­tailer of hand­made gar­ments, or­ganic food and fur­nish­ings, is still in the process of re­mov­ing the word ‘khadi’ from the price tags of prod­ucts made of the hand-wo­ven fabric, 18 months af­ter re­ceiv­ing a no­tice for us­ing the term with­out per­mis­sion.

The pro­ce­dure is a huge task and is tak­ing time, said a per­son aware of the de­vel­op­ment.

The Khadi & Vil­lage In­dus­tries Com­mis­sion (KVIC), an au­ton­o­mous body un­der the Min­istry of Mi­cro, Small & Medium En­ter­prises, had first sent a let­ter to the com­pany in Au­gust 2015, ask­ing it to stop us­ing the word khadi on its prod­ucts with­out proper per­mis­sion. Fabin- dia sought and failed to get the req­ui­site ap­proval. The com­mis­sion has once again sent a le­gal no­tice to Fabindia, stat­ing that the re­tailer was us­ing the word khadi with­out ap­proval.

“Fabindia is in re­ceipt of the no­tice is­sued by the KVIC dated 08.02.2017 and has re­sponded to it,” said Viney Singh, CEO, Fabindia. “We have sought an ap­point­ment from the des­ig­nated au­thor­i­ties at the KVIC to ex­plain our po­si­tion in per­son and re­solve the mat­ter. We await a re­sponse from the KVIC.” He said that as an or­gan­i­sa­tion, Fabindia has al­ways greatly val­ued the vi­sion and in­tent of the KVIC. “We have worked with the KVIC since our in­cep­tion 57 years ago. We look for­ward to an early res­o­lu­tion,” he said.

KVIC said in the le­gal no­tice that a scru­tiny showed that the la­bels on the re­tailer’s gar­ments men­tioned them as ‘Fabindia Cotton’ al­though the price tags, which

Fabindia said it has worked with KVIC for 57 years and hopes for an early res­o­lu­tion of the is­sue

were re­mov­able, had the word ‘khadi.’ KVIC al­leged this was a vi­o­la­tion of the Khadi Mark Reg­u­la­tions of 2003, which states that khadi prod­ucts can­not be sold in any form or man­ner with­out bear­ing the ‘Khadi Mark’ tag or la­bel.


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