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KVIC cancels license of oldest Khadi Institution “Khadi Emporium”

KVIC 2022: Cancels license of oldest Khadi Institution "Khadi Emporium"_4.1

Khadi and Village Industries Commission (KVIC) has cancelled the “Khadi Certification” of its oldest Khadi Institution named Mumbai Khadi & Village Industries Association (MKVIA). This MKVIA was running the popular “Khadi Emporium” at Metropolitan Insurance House, Mumbai since 1954. KVIC has cancelled the license of MKVIA as the latter had started selling fake Khadi products, which was against the “zero-tolerance” policy of KVIC against the sale of spurious/non-Khadi products.

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Why was this step taken?

  • The action came after KVIC found that the said Khadi Emporium at D.N. Road was selling non-Khadi products in the guise of genuine Khadi. During a routine inspection, KVIC officials collected samples from the Emporium that were found to be non-Khadi products.
  • KVIC issued a legal notice to MKVIA for flouting the norms of the “Khadi Certificate” and “Khadi Mark Certificate” issued by the Commission. With the cancellation of the registration, Khadi Emporium ceases to be a genuine Khadi Outlet and is no longer permitted to sell Khadi products from the Emporium.
  • KVIC is also contemplating legal action against the MKVIA for criminal breach of trust and cheating the public at large by misusing the credibility and popularity of brand Khadi.

Current affairs 2022

Important takeaways for all competitive exams:

  • KVIC Founded: 1956;
  • KVIC Headquarters: Mumbai;
  • KVIC Chairperson: Vinai Kumar Saxena;
  • KVIC Parent agency: Ministry of Micro, Small and Medium Enterprises.

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