New Delhi: Fabindia has started removing the brand name 'Khadi' it uses to promote its cotton products after a legal notice by Khadi India that the use of the word amounted to "unfair trade practice" and misusing its trade name.
Khadi & Village Industries Commission (KVIC) had sent a legal notice to Fabindia Overseas Pvt Ltd, a chain of ethnic wear retail outlet, asking it to immediately stop using the word Khadi from all its cotton products and remove display banners from its showrooms.
Sources said Fabindia CEO Viney Singh has responded to KVIC's notice, saying it was complying with all the directions of the KVIC. Fabindia has stated that "as per the direction issued" by KVIC, it has complied with them, they said.
Fabindia, in its reply, has also sought a meeting with KVIC officials to explain its position in order to resolve the matter to the satisfaction of Khadi India.
KVIC Chairman V K Saxena, who justified serving the legal notice, referred to the earlier communications with Fabindia by which the private firm's application for Khadi mark was treated as closed.
He cited a September 29, 2016 letter which stated that "upon the request of Fabindia, several meetings were held with KVIC and the last meeting was held on August 2, 2016, with Chairman of KVIC at New Delhi. During the meeting, it was assured that Fabindia will communicate their consent shortly.
"Since two months have passed and KVIC has not yet received any response from your end, it is presumed that you are not interested to obtain 'Khadi' mark certificate for sales and promotion of Khadi products.
"Hence in the present circumstances, your application for Khadi mark certificate may please be treated as closed. Henceforth, no correspondence on this subject will be entertained," the communication said.
Saxena also drew attention to a February 16 letter of KVIC in which it was decided to issue Khadi mark certificate in favour of Fabindia to carry out trading/selling of genuine Khadi and Khadi products attaching Khadi mark tags/labels, subject to several conditions which were also mentioned.