Fabindia gives undertaking to Bombay HC that it will not use khadi tag

Clothing retail major Fabindia Overseas Pvt Ltd has given an undertaking to the Bombay High Court that it would not use the term "Khadi" in their current or future products. The bench of Justice SJ Kathawala, on August 27, accepted the undertaking of the company and gave Fabindia four weeks' time to submit its response on a petition filed by the Khadi and Village Industries Commission (KVIC).

In the undertaking, Fabindia had committed not use the term "Khadi" in their products. With this order the court has disposed off the injunction plea of KVIC, however the plea for Rs 525 crore damages will continue.

KVIC had filed a damage suit of Rs 525 crore against Fabindia with the Bombay High Court on June 13 for illegally using its trademark "Charkha" and selling mill-made fabric products with the "Khadi" tag.

The autonomous body under the Ministry of Micro, Small & Medium Enterprises (MSME) had sent a legal notice to Fabindia in February, asking it to refrain from using the Khadi tag for their apparel line which did not meet the required criteria to be categorised as khadi.

As per the norms of Khadi Mark Regulations, 2003, and Khadi and Village Industries Commission Act, 1956, no textile should be sold or otherwise traded by any person, or certified khadi institution as khadi products, in any form or manner, without it bearing a Khadi Mark tag or label issued by KVIC. Fabindia, as it turns out, had violated the mandate.