The controversy around Fabindia using the trademark ‘charkha’ and selling apparel with the ‘khadi’ tag has been finally put to rest. Fabindia has given an undertaking to the court that it will not use the term ‘Khadi’ in their current or future products.
Khadi and Village Industries Commission (KVIC) had moved to the Bombay High Court on June 13 alleging that the ethnic brand was using the ‘charkha’ illegally.
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Fabindia will also file its response to a petition filed by the Khadi and Village Industries Commission (KVIC) in four weeks.
On Monday, Janak Dwarkadas, senior counsel who was representing Fabindia Overseas Pvt, informed the court that the company is giving an undertaking that it will not use the term ‘Khadi’ in their products and even if they do so, they will inform to KVIC in this regard.
Justice S.J. Kathawala, who was hearing the case had accepted the undertaking of the company and gave Fabindia four weeks’ time to submit its response in the matter.
The KVIC, in its suit, has sought damages to the tune of Rs 525 crore from Fabindia. The development is a major victory for KVIC since it has sought the court’s intervention to restrain Fabindia from using the ‘khadi’ tag.
“The KVIC has sought monetary damages for loss of profit due to Fabindia using the ‘khadi’ trademark. The suit claims that Fabindia sells factory-made cotton garments under the guise of ‘khadi’,” a lawyer on the condition of anonymitytold The Mint newspaper. “Now, since the company has agreed not to use the term ‘Khadi’, the dispute about damage and compensation will commence.”
Khadi and Village Industries Commission is an autonomous body under the Ministry of Micro, Small & Medium Enterprises (MSME).