KVIC Sues FabIndia For Rs. 525 Crore For Using 'Khadi' Tag Illegally

| February 6 , 2018 , 15:41 IST

One of the most popular ethnic fashion retail brands, Fabindia has created a niche for itself and an image, with its typical style and claimed use of Khadi material in its products. Fabindia's claims of using Khadi has landed it into trouble with the Khadi and Village Industries Commission (KVIC), which has sent a legal notice to Fabindia.

An autonomous body under the Ministry of Micro, Small and Medium Enterprises, KVIC has sent a legal notice to Fabindia demanding Rs 525 crore in damages for 'illegally' selling apparels with the 'Khadi' tag and using its trademark 'charkha' sign.

ALSO READ: Fabindia Store Sealed As Smriti Spots CCTV, Goa CM Orders Probe

KVIC sought monetary damages of Rs 525 crore for "loss of profit earned by Fabindia by using the trademark khadi and the khadi mark which is qualified at 25 per cent of the average annual profits booked by Fabindia before the IT authorities in the preceding three years".

In the legal notice, KVIC has threatened to launch legal proceedings against Fab IndiaOverseas Pvt. Ltd. if it does not stop using the Khadi trademark which is similar to its own.

KVIC has asked Fabindia "to cease and desist immediately and forthwith from displaying charkha or using selling products bearing the charkha or khadi mark or any similar mark on goods and use/ sell products bearing the word/ mark khadi or any similar mark whatsoever or howsoever related to khadi."

It has asked for an "unconditional apology" and a written undertaking from Fabindia that it will not deal in any khadi or related product using khadi trademark.

A Fabindia spokesman, termed the KVIC claims as "baseless", and said that it would defend itself "vigorously" if any action was taken on the legal notice.