The Khadi and Village Industries Commission has sent a legal notice to ethnic wear retailer Fabindia, demanding ₹525 crore in damages for allegedly “illegally” using its trademark charkha, and selling clothes with the khadi tag.
The Khadi Commission, an autonomous body under the ministry of micro, small and medium enterprises issued a notice on January 29 and asked Fabindia to respond within seven days from the receipt of the notice or to face legal action.
The dispute is being picked by the Khadi Commission on Fabindia over using the word khadi. The notice said the retailer was “misleading consumers by selling factory-made cotton garments spun in mechanised charkhas, or spinning wheels, as khadi.”
The Khadi committee first issued a notice to Fabindia in 2015, saying the retail chain had not applied for a certificate. The commission had sent two more notices over the next two years. This time, demanding an unconditional apology, the Khadi Commission wants Fabindia to surrender all stock marked as “khadi” or “charkha”, and hand over its inventory and accounts for the past three years.
Fabindia has regarded the allegations as ‘baseless’, denying any wrongdoings. The spokesperson of the company said that the company was surprised upon seeing the contents of the notice. He said that they have made it clear to KVIC through extensive correspondence and in multiple meetings over the last two years that Fabindia is not in violation of any of the provisions of the KVIC Act or regulations framed thereunder.
The government’s Khadi Mark Regulations Act, 2013, says no product can be sold as khadi without a Khadi Mark certificate.
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