The shop's name after the German dictator had sparked an outrage among the Jewish community and led to calls for a change in the label. The store is located in Vastrapur area.
Ahmedabad Municipal Corporation (AMC) was flooded with e-mails demanding removal of the 'Hitler' billboard, in which the alphabet 'i' was dotted with Nazi swastika.
"The store owners had voluntarily agreed to remove the controversial billboard. But when they failed to do so, we removed it," AMC Commissioner Guruprasad Mohapatra said.
"It is a sensitive issue. We had received hundreds of e-mails demanding removal of the board," he said.
However, owners of the outlet which sells western men's wear and opened in August, have decided to take up the issue with the police and court, saying they were not served a notice by the authorities before removing the board.
"AMC today removed the name from board without even serving a prior notice to us. Earlier, they had orally agreed to pay us the amount spent on registration of the shop name as well as the cost of putting up the board," Manish Chandani, a co-owner of the store, said.
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"I am going to file a police complaint in this regard, and if needed shall move court against them," he said.
In September, a group of local Jews had asked the owners to change the shop's name, saying it hurt the sentiments of their community.
Israel Counsel General Orna Sagiv, who visited Gujarat last month, had also taken up the issue with top officials here. After Israel's intervention the owners "voluntarily" agreed to change the name, but demanded compensation for the amount spent on its registration and publicity.
The name was selected as a tribute to the grandfather of one of the shop owners, who was nicknamed Hitler for being very strict.