Telecom Ministry Finds That Freedom 251 Should Cost Atleast Rs 2300; Income Tax Raids Ringing Bells Office in Noida

After a huge uproar: both positive and negative regarding the too good to be true offer by a company called Ringing Bells, Government of India has decided to intervene, and clear some doubts.

In an unprecedented move never seen before, Telecom Department has said that they have investigated the handset called ‘Freedom 251’ which is being promised for Rs 251, and found that it should cost atleast Rs 2300.

Telecom Ministry was forced to intervene, after Indian Cellular Association wrote to the ministry, seeking an ‘investigation’ into the whole fiasco. They had expressed severe doubt and apprehension regarding the promises, which can be broken and the consumers can be taken for a ride.

Telecom Ministry also said that even if the company decided to import this product from the cheapest company, it can’t be sold for less than Rs 2700. Besides, if we add the taxes, import duty, retail costs, supply chain costs, then the price has to be somewhere near Rs 4000.

Telecom Ministry didn’t specify of any action would be taken against the company.

As per the company, they have received around 30,000 orders as of now (who have paid in cash),  whereas Mohit Kumar Goel founder of the company said that a total 7.35 crore registrations (who have not paid) have been received and they are confident that they would be able to deliver the world’s cheapest smartphone for Rs 251.

Income Tax Raid Ringing Bells

Meanwhile, as per reports emerging, Income Tax department raided Ringing Bells’ Noida office. Ringing Bells is the company which is promoting and selling Freedom 251, touted as the cheapest smartphone in the world.

As per official reports, this raid has nothing to do with the price or promises made; but due to the fact that Ringing Bells is not associated or listed with Bureau Of Indian Standards; and in the absence of this, no company can sell their products inside India.

Details haven’t yet arrived regarding the findings of this IT raid.

BJP MP Kirit Somaiya has written to UP Government, Finance Ministry, IT Dept. and other Govt. officials for conducting an investigation into the claims made by Ringing Bells.

On the day of launch, Pranav Dixit, Tech Editor at HT had conducted a Reddit India AMA, wherein he shared that in future, Ringing Bells may cut out a deal with various app makers, to include their apps for some compensation.

A lot of questions still exists; and very few answers are available.

We will keep you updated as more details come in.