The Khadi and Village Industries Commission (KVIC) has sent a legal notice to Fabindia, a chain of ethnic wear retail outlets, demanding a whopping Rs 525 crore in damages for ‘illegally’ using its trademark ‘charkha’ and selling apparels with the ‘khadi’ tag. The KVIC, according to the legal notice, has also threatened to launch legal proceedings against Fabindia Overseas Pvt. Ltd. if it does not desist from displaying the trademark similar to its own.
A Fabindia spokesman, however, dubbed the KVIC claim as ‘baseless’, and said it will defend itself ‘vigorously’ if any action was taken in pursuance of the legal notice. The KVIC asked the company "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 sought an ‘unconditional apology’ and a written undertaking from Fabindia that it will not deal in any khadi or related products bearing khadi trademark.
According to sources, KVIC, which is an autonomous body under the Ministry of Micro, Small and Medium Enterprises, sent the legal notice on January 29 and sought a response from Fabindia within seven days of receipt, failing which the commission will approach court to protect its ‘rights and goodwill’.
"We are in receipt of the notice from lawyers instructed by KVIC, and are surprised at its contents. We have made it clear to the 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 claims made in the notice are baseless. The notice has been entrusted to our lawyers, and any action taken in pursuance of the notice will be defended by us vigorously," a Fabindia spokesman said.
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