logo
Sole searching: Who represents Kolhapuri slippers? Turf war breaks out

Sole searching: Who represents Kolhapuri slippers? Turf war breaks out

Time of India2 days ago
A turf war has broken out over the authority to represent the Geographical Indication (GI)-tagged Kolhapuri slippers, amid the
Prada
spotlight. While one party has proposed collaboration with the Italian luxury fashion house, the other has threatened legal action and demanded damages.
After showcasing a Kolhapuri-inspired sandal without acknowledging the source, Prada later admitted its oversight. It discussed the matter with the Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) and later, sent its supply chain team to India to explore a potential collaboration with local artisans.
Explore courses from Top Institutes in
Select a Course Category
Operations Management
MBA
Finance
Public Policy
Degree
Project Management
healthcare
Product Management
Leadership
Data Science
Cybersecurity
Data Science
Artificial Intelligence
PGDM
Design Thinking
MCA
others
Technology
Data Analytics
Others
CXO
Management
Digital Marketing
Healthcare
Skills you'll gain:
Quality Management & Lean Six Sigma
Analytical Tools
Supply Chain Management & Strategies
Service Operations Management
Duration:
10 Months
IIM Lucknow
IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics
Starts on
Jan 27, 2024
Get Details
However, the Karnataka government-backed Dr Babu Jagjivan Ram Leather Industries Development Corporation (LIDKAR) approached the corporation's legal adviser to take action against MACCIA, accusing it of overstepping its authority in dealing with Prada, according to a copy of the letter seen by ET. A legal notice will be sent on Monday to the trade body, according to a senior official.
Strong Stance
The Karnataka body, on July 1, also served a legal notice to Prada, seeking ?500 crore in damages for GI infringement and ordering the company to 'cease and desist' from marketing or selling the sandals. The notice warned that failure to comply would compel LIDKAR to initiate civil and criminal proceedings. ET has seen a copy of the notice.
In its response on July 9, Prada stated it had 'not used the term 'Kolhapuri' or any associated GI markings in the naming, marketing, or presentation of its footwear.' The company concluded the note by saying it was in discussions with MACCIA and would be 'in a better position to respond more substantively following the outcome of the upcoming discussions with the chamber of commerce.'
Live Events
LIDKAR managing director KM Vasundhara said the body has also issued notice to the chamber 'for their unilateral and unauthorised actions concerning the GI rights.' The body's stance is clear, she said. 'Any discussions regarding GI-tagged Kolhapuri chappals must follow the legal framework and cannot be initiated independently by non-statutory bodies like MACCIA. Hence, legal recourse was taken to protect the interests of artisans and uphold GI laws.'
This escalation is the latest in a series of confrontations between the trade chamber and the two GI tag holders— LIDKAR and Maharashtra's Sant Rohidas Leather Industries & Charmakar Development Corporation (LIDCOM). While MACCIA has taken the lead in engaging with Prada, including facilitating the brand's India visit, LIDKAR adopted the legal route. The chamber first wrote to Prada on June 25, setting the wheels in motion for the brand's visit to Kolhapur, where it toured production units and met with footwear artisans.
But three days before MACCIA's virtual meeting with the international brand on July 11, the Karnataka body issued a notice, demanding it stop all negotiations and asserting MACCIA had 'no legal authority to represent, negotiate, or enter any agreement with Prada or any third party concerning Kolhapuri chappals, which are GI-protected under Indian law,' and for the chamber to 'refrain from all public and private negotiations, promotional activities, or discussions regarding Kolhapuri chappals,' according to a copy of the letter ET has seen.
In its response on July 12, MACCIA proposed that both GI tag holders be 'formally introduced to the international brand as recognised producers and authorised stakeholders of the GI product,' and urged LIDKAR to reconsider its stance and 'join hands with MACCIA and the wider artisan community to collectively shape a framework that protects heritage while opening doors to responsible international engagement.'
Prada's team has toured several local units with MACCIA president Lalit Gandhi—including one operated by LIDCOM—but senior officials from both GI tag holders were notably absent.
Gandhi said the trade body's goal is 'empowerment of artisans and to get the market for Kolhapuri chappals at global level.'
Prada is expected to provide its evaluation report internally and respond to the Maharashtra chamber next week.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Meta, X and LinkedIn appeal unprecedented VAT claim by Italy
Meta, X and LinkedIn appeal unprecedented VAT claim by Italy

Time of India

time16 minutes ago

  • Time of India

Meta, X and LinkedIn appeal unprecedented VAT claim by Italy

Academy Empower your mind, elevate your skills US tech giants Meta, X and LinkedIn have lodged an appeal against an unprecedented VAT claim by Italy that could influence tax policy across the 27-nation European Union, four sources with direct knowledge of the matter said on is the first time that Italy has failed to reach a settlement agreement after bringing tax cases against tech companies, resulting in a fully-fledged judicial tax trial being to the sources, this came about because the case went beyond agreeing on a settlement figure and sought to establish a broader approach focused on how social networks provide access to their tax authorities argue that free user registrations with X, LinkedIn and Meta platforms should be seen as taxable transactions as they imply the exchange of a membership account in return for a user's personal issue is especially sensitive given wider trade tensions between the EU and the administration of US President Donald is claiming 887.6 million euros ($1.03 billion) from Meta, 12.5 million euros from X and around 140 million euros from the parent company of Facebook and Instagram, Elon Musk's social network X and Microsoft's LinkedIn filed their appeals with a first instance tax court after mid-July, when the deadline for responding to a tax assessment notice issued by Italy's Revenue Agency in March to several experts consulted by Reuters, the Italian approach could affect almost all companies, from airlines to supermarkets to publishers, who link access to free services on their sites to users' acceptance of profiling could also eventually be extended across the EU where VAT is a harmonised a statement to Reuters, Meta said that it had cooperated "fully with the authorities on our obligations under EU and local law".It added that the company "strongly disagrees with the idea that providing access to online platforms to users should be subject to VAT".LinkedIn said it had "nothing to share at this time".X did not respond to a request for comment from is uncertain whether a full trial of the matter, which involves three levels of judgement and takes an average of 10 years, will go discussions with the three companies, Italy is preparing as a next step to seek an advisory opinion from the European Commission, the sources Italian Revenue Agency will have to prepare specific questions, which the Economy Ministry will then send to the EU Commission's VAT Committee, which meets twice a aims to submit its questions for the meeting scheduled to be held by early November, in order to receive the EU's comments in time for the following meeting in spring Economy Ministry and Revenue Agency declined to EU Commission's VAT Committee is an independent advisory group. While its assessment will be non-binding, a "No" could prompt Italy to halt the case and ultimately drop the criminal investigation by Italian prosecutors, according to the dispute is one of several between Europeans and US Big July 11 Reuters exclusively reported that Meta would not be tweaking its pay-or-consent model further despite the risk of EU to a Financial Times report on July 17, the European Commission has stalled one of its investigations into Musk's platform X for breaching its digital transparency rules while it seeks to conclude trade talks with the US.

A real-estate tycoon's loan went bad. Then they came for his Ferraris and fine wine
A real-estate tycoon's loan went bad. Then they came for his Ferraris and fine wine

Mint

time3 hours ago

  • Mint

A real-estate tycoon's loan went bad. Then they came for his Ferraris and fine wine

In France's Provence region late last year, a group of men entered Château de Chausse, the 138-acre home and vineyard of Charles Cohen. While the New York real-estate tycoon was away, the men scoured the palatial house, taking high-priced artworks, furniture and Cohen's collection of fine wines. They weren't thieves. The men were following orders of the French court, and they seized hundreds of thousands of dollars of Cohen's personal belongings in the château on behalf of Fortress Investment Group. Fortress says it was simply taking what it is owed. In 2022, the New York-based investment firm made a $535 million loan to Cohen Realty Enterprises as a way to consolidate his previous debt. Cohen's collateral included a Manhattan office tower, the Le Méridien Dania Beach hotel in Fort Lauderdale, Fla., and four other properties, according to records from New York State Supreme Court, where Fortress is suing Cohen. But crucially, Cohen also personally guaranteed $187.2 million of that loan. That 'recourse" portion of the debt gave Fortress additional powers to go after Cohen personally if his business defaulted. Now, that's what's happening. Cohen's business defaulted last year, and Fortress took control of most of the collateral. But the firm said that the value of those properties falls far short of what Cohen owes. Now the lender is trying to confiscate Cohen's personal possessions. Fortress launched legal efforts to seize Cohen's houses in Provence and Greenwich, Conn., according to New York court records. Fortress is also going after his 25 luxury automobiles including two Ferraris and other valuable belongings. Earlier this month, an Italian judge ruled that a 220-foot yacht couldn't leave the Port of Loano without court approval. The superyacht, valued at $49.6 million, is one of five yachts that Fortress is trying to seize from the real-estate mogul. Cohen transferred ownership of the yacht in Port of Loano to his wife last year, court records show. Each side accuses the other of impropriety. Fortress says Cohen improperly blocked the firm's enforcement of his guarantee by transferring his yachts and other valuable assets—including his $20 million Greenwich home and Château de Chausse—to family members, according to court records. Cohen's net worth is nearly $2 billion, according to a financial statement that he filed with the court. He said the transfers were legitimate and made for estate and tax-planning purposes. A French court ruled in his favor on the Provence château. In an interview with The Wall Street Journal, Cohen said he is in the process of selling some properties to pay Fortress but needs more time to complete complicated deals. 'They keep pecking at us, like a bird would peck at something," he said in a February deposition about his negotiations with Fortress. 'Enough was never enough." Personal-recourse debt has a long, bruising history in commercial real estate. Developers often turn to personal guarantees because they would have no other way to obtain enough financing, and because they are convinced they can easily pay back their loans. 'They think if you hold on to a property long enough, the values are always going to justify the loan," said Mark Edelstein, chair of Morrison Foerster's global real-estate group. Donald Trump famously used recourse loans to build his property empire in the 1980s, only to find himself on the brink of personal bankruptcy in the early 1990s because of these personal guarantees. Trump said during a TV appearance that in 1991 he pointed to a homeless person and said he 'is worth $900 million more than I am." Personal guarantees were also a big reason why New York developer Harry Macklowe faced near financial ruin during the 2008-09 financial crisis, after he took out a $1.2 billion bridge-equity loan from a group including Fortress with recourse contingencies. Macklowe said that the situation was resolved and is now 'old history." Cohen has used personal guarantees before, but said he has never had this kind of problem. His business is countersuing Fortress. His dust-up with the investment firm is one of the nastiest in commercial real estate for many years. Attorneys for Cohen say that Fortress's actions amount to improper harassment. The investment firm has put restraints on Cohen's personal brokerage accounts, and on brokerage accounts held by his mother and sister. Cohen cannot withdraw money from his personal accounts without Fortress's approval. 'His family's lives are being disrupted," said Christopher Caffarone, Cohen's attorney, at a court hearing in May. 'They are getting subpoenaed. They are getting deposed." Fortress subpoenaed Cohen's family members because he transferred personal assets to them and because they are involved in running or financing his companies, a Fortress spokesman said. Fortress, an investment giant owned in part by Abu Dhabi government fund Mubadala Capital, said that it has a duty to its investors that include retirement and pension funds. 'Fortress is left with no choice but to begin enforcing its judgment against Cohen's assets," the firm said, according to court records. Charles's father and his two uncles went from selling cars to building what would become a real-estate empire, developing towers on Manhattan's Third Avenue as the old elevated railway was dismantled. Charles became president of the company in 1983 and more than tripled it in size to 12 million square feet. Nowadays, Cohen, 73 years old, is a widely recognizable figure in New York real-estate circles, where he is known for his tailored suits and reflective stainless-steel glasses. He also has invested tens of millions of dollars in filmmaking. Cohen's production firm has distributed more than 100 films including 'The Salesman," which won the Academy Award for best foreign language film in 2017. Cohen also purchased movie theaters in Europe and the U.S. Fortress and Cohen's business relationship goes back decades. The investment giant has lent hundreds of millions of dollars to Cohen, and it financed many of his real-estate deals in the years leading up to the pandemic. Then during Covid-19, demand for office space plummeted. People also stopped going to the movies, upending Cohen's movie-theater holdings. Other office-building owners at the time were conceding defeat, giving properties back to lenders. Cohen said he felt the market would rebound soon. He also felt emotionally attached to the properties, some which had been in his family for decades. The two sides agreed on a restructuring plan, which included the personal guarantee. But the market didn't rebound quickly. The two sides modified the 2022 loan four times but the properties weren't able to generate enough cash to pay the debt service. In March 2024, Cohen's business defaulted. Cohen said that he had a handshake agreement with Fortress for another extension, according to court records. But the firm said there was no such deal, and the state supreme court ruled for Fortress. Cohen says now he is selling properties to raise cash to meet his obligations to Fortress. 'I've always been good at hanging on," Cohen said. 'That's what we've always done and we will continue to do that."

Bonfiglioli's India unit is said to consider $250 million IPO
Bonfiglioli's India unit is said to consider $250 million IPO

Time of India

time3 hours ago

  • Time of India

Bonfiglioli's India unit is said to consider $250 million IPO

The Indian unit of Italian gearmaker Bonfiglioli Group is considering an initial public offering in Mumbai that may raise about $250 million, according to people familiar with the matter. Tired of too many ads? Remove Ads The Indian unit of Italian gearmaker Bonfiglioli Group is considering an initial public offering in Mumbai that may raise about $250 million, according to people familiar with the Transmissions Pvt. has hired Axis Capital Ltd., ICICI Securities Ltd., JPMorgan Chase & Co. and BNP Paribas SA to arrange the listing, the people said, asking not to be named because the information is been a wave of public offerings by multinational-backed companies tapping into the renewed strength of India's equity capital markets, led by Hyundai Motor Co. raising $3.3 billion in October in a record-breaking debut. Italy's Carraro SpA followed with a $147 million listing of its local unit, and LG Electronics Inc. has regulatory approval for a $1.7 billion share are ongoing, and details such as the size of Bonfiglioli's offering could change, the people said. Representatives for Bonfiglioli, Axis, ICICI, and JPMorgan didn't respond to requests for comment. A spokesperson for BNP declined to makes gearboxes and gearmotors used in industries such as mobile machinery, wind turbines, food processing, packaging, cement and steel.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store