The nearly seven-decades-old ‘Khadi Emporium’ has been banned for selling fake Khadi products by the Khadi and Village Industries Commission (KVIC), a statement said on Saturday.

The commission, which is under the Union Ministry of Micro, Small and Medium Enterprises, has adopted a “zero tolerance” policy against sale of spurious or non-Khadi products in recent years and took the action against the “oldest Khadi institution”, the official statement said.

“The action came after KVIC found that the said Khadi Emporium at Dr DN Road was selling non-Khadi products in the guise of genuine Khadi. During routine inspection, KVIC officials collected samples from the Emporium that were found to be non-Khadi products,” the statement said.

The emporium was established in 1954 and sells a slew of Khadi products including clothing, furniture, toiletries and other handicrafts, for which it has continued to be a favourite with shoppers even as private labels devoted to the legacy linen brand have proliferated. Because of its years-old existence, the emporium on the Dr D N Road is a landmark in itself.

The statement said KVIC issued a legal notice to Mumbai Khadi & Village Industries Association, which was running the emporium, for flouting the norms of “Khadi Certificate” and “Khadi Mark Certificate” issued by the Commission.

“With 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,” the statement said.

The 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, it added.

MKVIA was entrusted with the operation and management of KVIC in 1954 under “strict conditions” that it would sell only genuine products but off late, it had indulged in unfair trade practices by selling fake Khadi products, thus cheating people who were under the impression that this Emporium was being run by KVIC, the statement said.

As part of its drive, KVIC has so far has issued legal notices to over 1,200 entities including a Rs 500-crore damages being sought from the IPO-bound retail brand Fabindia for misusing the brand name “Khadi” and selling non-Khadi products under the name of “Khadi”, which has been challenged in the Bombay High Court, the statement said.

Last year, KVIC also forced online shopping portals – Amazon, Flipkart and Snapdeal – to take down 140 web links that were selling non-Khadi products as “Khadi”.

A number of violators tendered apology and undertook not to use the brand name “Khadi” in future, the statement said, attributing it to KVIC’s actions.