The statutory body has accused Fabindia of indulging in “unfair trade practices” and has issued it a legal notice for unauthorised usage of the word ‘Khadi’, a registered KVIC brand name, in their product descriptions. 

On social media, many users are backing Fabindia for promoting local craft and critising the government for monopolising Khadi. 

So we are breaking down the row for you so you know is in the wrong.

You weren’t watching but this legal battle has been on for two years now. 

Here’s a timeline:

• In 2015, Khadi India (KVIC), an autonomous  body under the Ministry of Micro, Small & Medium Enterprises, sent a notice to Fabindia Inc, which opened its first retail store in Delhi in 1976, asking them to stop advertising and selling their cotton products in the name of ‘Khadi’ since it does not have the permit.
• Fabindia told KVIC it had complied with the notice and stopped the use of ‘Khadi’ on their labels and advertisements. According to reports, they issued internal directions to implement the same. 
• KVIC has now sent another legal notice to Fabindia, alleging the company was misleading customers and continuing to use ‘Khadi’ to sell products, even though the fabric was not really Khadi. 
• According to reports, KVIC found that though Fabindia had stopped using the trademark ‘Khadi’ on products, it was still being printed on the removable price tags. 
• KVIC says Fabindia has been selling normal cotton fabric as ‘Khadi’ and has given the company 15 days to respond. 

Just why can’t Fabindia use ‘Khadi’? 

A lot of people are saying that the government trademarking Khadi is like monopolizing ‘jeans’. 

But a 1956 Parliament Act makes KVIC a statutory body for protecting the interests of artisans and village industry. The very reason it was set up was to provide employment to artisans, regulate village industries and maintain a steady income for artisans by protecting them from unfair trade practices and exploitation. 

The Khadi Mark was launched in 2013 to ensure the end of sale of fake ‘Khadi’ or Khadr’ products or textiles.

The two Acts together ban the sale or trade of any textile with the ‘Khadi Mark’ unless KVIC issues the company a certificate. Only those institutions or individuals with the certification can use the label and sell Khadi textile or products. 

FabIndia was denied the certificate after it applied in October 2015 since it was found to be in non-compliance with the procedural formalities it was supposed to follow to get the permit. However, KVIC has alleged that the retail chain is still doing it. 

Who then is at fault?

Fabindia, which boasts of working with some 55,000 artisans from India, is seen as a savior to local crafts. 

But as per KVIC, the brand is simply fooling customers into buying products that are actually not made of Khadi. Legally speaking, the government appears to be right on point with its threat to sue. It’s because technically, Fabindia seems to be breaking the rule. 

We reached out to Fabindia for a comment but couldn’t get a response. 

(With inputs from PTI) 

Feature Image Source: FabIndia/KhadiIndia