Khadi India may sue Fabindia, a chain of ethnic wear retail outlets, for using and selling its cotton products unauthorisedly under its registered brand name "Khadi".
Khadi & Village Industries Commission (KVIC) has sent a legal notice to Fabindia Overseas Pvt Ltd asking it to immediately stop using Khadi word from all its cotton products and remove display banners from its showrooms immediately alleging that Khadi India's brand name was unlawfully used to mislead and confuse the consumers.
Justifying the legal notice, KVIC Chairman V K Saxena said, "the KVIC was very keen to protect its reputation and would take stringent measures against those who violated rules and regulations that have been framed for the benefit of rural artisans attached to it."
Maintaining that earlier too such action has been taken against major companies, including one last year, Saxena said the notice to Fabindia said, as per the Khadi Mark Regulations, 2003 and Khadi & Village Industries Commission Act, 1956 in order to regulate the production, sale or trading of Khadi and Khadi products in India, "no textile shall be sold or otherwise trade by any person or certified Khadi institution as 'Khadr' or 'Khadi products', in any form or manner without it bearing a 'Khadi Mark' tag or label issued by KVIC".
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.
"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 c1ear1y indicate products being sold by Fabindia as Khadi", the legal notice said.