KVIC sues Fabindia for illegally using their trademark and tag, demands 525 crores

New Delhi, Feb 6 (KNN) For illegally using Khadi Trademark “Charkha” and selling apparels with the “khadi” tag, Khadi and Village Industries Commission sued Fabindia, a chain of ethnic wear retail outlet and demanding whopping Rs 525 crore.

The KVIC has also threatened to file legal proceedings against Fabindia Overseas Pvt Ltd if it does not stop from displaying the trademark similar to its own.

However Fabindia spokesman, called the KVIC claim as “baseless”, and said “it will defend itself “vigorously” if any action was taken in pursuance of the legal notice.”

KVIC warned the Fabindia to instantly stop using or selling products under Khadi tags and trademarks.

According to sources, the KVIC, which is an autonomous body under the Ministry of Micro, Small and Medium Enterprises, has sent the legal notice on January 29 and gave them a seven days time to response failing which the commission will approach court to protect its “rights and goodwill”.

According to the statement of legal notice “The products offered under the impugned mark KHADI and the khadi mark tag were not even genuine khadi garments. You (Fab India) were selling factory-made cotton garments as khadi, whereas khadi is handspun and hand-woven, and thereby misleading the consumers,”

In lieu of this Fab India spoke person  said that they have not breached any of the provisions of the KVIC Act or regulations framed there under. (KNN/YV)