KVIC sends legal notice to Fabindia for violating Khadi mark regulations
By Team Legistify / 2017-02-22

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KOLKATA: Khadi and Village Industries Commission has come down heavily on Fabindia for selling its ready-made cotton garments as Khadi products without getting proper approvals from the government body. The notice said that on careful scrutiny of garments and price tag sold by Fabindia as Khadi, it was observed that Fabindia labeled garments as ‘Fabindia Cotton’. "However in the price tag of the same garment the word Khadi is used which itself proves that Fabindia is not selling Khadi products but misleading consumers by using the word Khadi on its price tag which are removable at the later stage. The sale of fabric/garments by unauthorisedly using the name of ‘Khadi’ without obtaining Khadi mark registration from KVIC, in compliance of the provisions of Khadi Mark registration, is in the contravention of the provisions of the Khadi Mark regulation and as such the same is unlawful," read the notice. "It is an illegal act and in other words amounts to indulging in unfair trade practice," the notice sent out to the office of Vinay Sing, chief executive officer, Fabindia Overseas Private Limited on February 8 read. Fabindia’s not using the Khadi Mark is a clear violation of Regulation 3 of Khadi Mark Regulations, 2003, notified by the ministry of Micro, Small and Medium Enterprises, Government of India which states no textile shall be sold or otherwise trade by any person or certified Khadi institution as Khadi or Khadi products in any form or manner without it bearing a ‘Khadi Mark’ tag or label issued by the Committee under the said regulations. "We had drawn the attention of Fabindia to this aspect in discussion in August 2015 as well when the company had issued some advertisements for selling of fabric in the name of Khadi. We sent them a later the same month to stop further advertisement and sale, they had agreed to do so but later when KVIC held discussions with Fabindia representatives on details of procedural requirements for issuing of Khadi Mark certificate they did not adhere to them and were denied the certification. They were notified about it but they did not stop using Khadi’s name written assurances from their team," said VK Saxena, chairman, KVIC. "Khadi is a sensitive product for us and given the popularity of the brand we sent a notice too we do not want anyone to mislead the consumers. We would take stringent measures against those who violated rules and regulations that have been framed for the benefit of rural artisan attached to it," he added.? The notice has asked the brand to respond and explain its position within 15 days from the date of receiving the notice. 3 ways you can save tax beyond 80cAd Scripbox Acknowledging receipt of the notice when ET reached out to to the brand. Viney Singh, CEO, Fabindia said, "We are in receipt of the notice and have responded to KVIC, requesting a meeting with the designated authorities to understand the issues that have been raised, and to resolve them."

Written & Published in economictimes.indiatimes.com/


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