In a swift but stern action taken by Khadi &Village Industries Commission (KVIC) management, 11 out of 13 outlets of Mumbai Khadi & Village Industries Association (MKVIA), a recognized institutions of KVIC were sealed for indulging in unfair trade practice. Mumbai Khadi association is one of the oldest directly aided Khadi Institution associated with KVIC.
The revelations began when during the year 2017-18, as part of a regular physical verification of Khadi Bhawans of the association, the KVIC officials took several samples of the fabric. On testing of the samples it was observed that the samples were proved to be non-Khadi. The KVIC, taking serious note of this malpractice issued a show cause notice to the Mumbai Khadi association and warned against for stern action.A complaint was also filed by a consumer against the same store, for selling non-Khadi products in the name of Khadi.
The KVIC management took this matter very seriously and after giving due opportunity to the Mumbai Khadi Association to explain their conduct, KVIC revoked the Khadi Mark and Khadi Certificate given to association June 2019. However, it was found that despite suspension of Khadi Mark Certificate the Mumbai Khadi Association, to sell products with Khadi Mark and labels even after the suspension.
Besides the fraudulent practices, it was also found that Mumbai Khadi Association has not paid more than Rs.2 Crore also to KVIC towards the loan given to it by the KVIC to the association for Khadi activity.
KVIC by invoking the powers conferred under the provisions of Hypothecation Deed and also the KVIC Loan Rules, 1958, alsofreezed all bank accounts of the association and sealed all 13 outlets operated by it on 11th Nov’19.
A senior official of KVIC said “Such malpractices within KVIC system shall not be tolerated. This is a strong message for all the institutions engaged in any form of malpractices. Any irregularities in the system if found would be severely penalized..”
