The Khadi and Village Industries Commission (KVIC) has petitioned the Bombay High Court against Fabindia for "illegally" using its trademark "charkha" and selling apparel with the "khadi" tag.
The KVIC, in its suit filed on June 13, has sought damages to the tune of Rs 525 crore from Fabindia.
According to the high court website, the suit will come up for hearing before a single-judge bench in due course of time.
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".
According to the suit, Fabindia continued to sell garments in the name and style of khadi, despite several correspondence sent to them by the KVIC and also a legal notice issued to them in February this year, asking them to refrain from doing so.
The KVIC has sought the high court to restrain Fabindia from using the "khadi" tag.