KVIC slaps legal notice to Fabindia for allegedly selling cotton products under brand name 'Khadi'

New Delhi, Feb 13 (KNN) The Khadi Village and Industries Commission (KVIC) has issued legal notice to the very famous ethnic wear retail outlet Fabindia alleging that the latter is indulged in unfair trade practices by using its cotton products under the brand name ‘Khadi’.

The notice has been slapped to Fabindia overseas Pvt Ltd asking it to immediately stop using Khadi word for its cotton products and also remove banners from its showrooms immediately.

KVIC alleged that Khadi India brand name has been unlawfully used by KVIC to mislead and confuse the customers.

"You are called upon to explain your position in the above matter within 15 days from the date of receipt of this notice, failing which the KVIC will be constrained to proceed against your company as per law for the violation of Khadi Mark Regulation and payment or incidental damages for the losses caused to KVIC by Fabindia," the legal notice addressed to Fabindia's New Delhi-based CEO said.

The notice was issued on February 8, 2017.

KVIC is an autonomous body under the Ministry of Micro, Small & Medium Enterprises.

KVIC has it had issued warning regarding this to Fabindia earlier.

It also said Fabindia was denied the certificate to use the brand name Khadi as it did not adhere to the procedural formalities for Khadi mark certification which was discussed with the representatives of the private company.

The notice said that despite written assurances, Fabindia was still selling readymade garments from its outlets under the name of 'Khadi' and have also put up prominent Khadi display panels at their various sales outlets.

"Further, on visit to your outlets, it was found that readymade garments as Khadi are being sold from your several outlets. Photocopy of few such price tags and display panel at Bengaluru Airport clearly indicate products being sold by Fabindia as Khadi", the legal notice said.