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Khadi and Village Industries Commission (KVIC) has sent a legal notice Fabindia seeking the damages of Rs 525 crore for illegally using the trademark charkha and for selling the clothes of his brand under the tag of Khadi. KVIC through its notice has asked the company to cease and desist from displaying, using or selling the clothes bearing the mark of charkha or khadi mark or any similar mark or cannot use or sell the goods with the word mark Khadi. Further, the KVIC has stated in the notice that if the company did not comply with the notice then they will file a suit for infringement against the Fabindia Overseas Pvt Ltd.
An unconditional apology and a written undertaking that the Fabindia will not deal in any Khadi or related goods bearing Khadi trademark has been sought by the KVIC. Lawyer of KVIC stated that it was noted in 2015 that fabindia was illegally using the Khadi mark which is identical and deceptively similar to the mark of KVIC. The legal notice through Kochhar & Company has been sent to Fabindia Overseas Pvt Ltd on January, 29. The Fabindia has stated that the claims made by the KVIC in the legal notice are wrong and baseless and if any suit is filed by the KVIC then fabindia will vigorously defend it.
Fabindia is a private company which makes the products from traditional techniques, skill based and hand-based processes. The legal notice further alleged that the clothes sold by Fabindia under the impugned trademark Khadi are not genuine khadi but they are selling factory made cotton garments as Khadi and is thereby misleading the consumers. The notice further alleged that use of mark by the fabindia has caused irreparable loss, damage and harm to the goodwill associated with the Khadi trademark and has also caused loss to the artisans.
Khadi and Village Industries Commision is established by the act of parliament and is a statutory body.