KVIC warns Fabindia to stop using the word ‘Khadi’
The Khadi and Village Industries Commission (KVIC) said ethnic attire retailer Fabindia has agreed that it won’t use the word ‘Khadi’ in its items. KVIC an independent body under (MSME), had sued Fabindia for Rs 525 crore in the high court on June 13th. KVIC, however, will pursue its application for Rs 525 crore in damages against the New Delhi-headquartered retailer for allegedly using its trademark ‘Charkha’ and selling mill-made fabric products with the ‘Khadi’ tag without prior approval.
The issue started when KVIC and Fabindia disagreed over the use of brand name ‘Khadi’ Fabindia was in discussion with KVIC to get the authorisation to utilize the ‘Khadi’ mark name yet KVIC said talks between the two had fallen through because Fabindia was not meeting procedural standards. KVIC has permitted Arvind Mills and Raymond to utilize the “Khadi” mark name.