KVIC takes action against sales outletsfound indulging malpractices
by Shrutee K/DNS
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..”
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