Ringing Bells Private Limited

Ringing Bells Private Limited was a company based in Noida (India), registered on 16 September 2015.[1][2] It was later described as a "ponzi scheme".

Ringing Bells company
TypePrivate
IndustryTelecommunications, Consumer electronics
Founded16 September 2015 (2015-09-16) in Noida, Uttar Pradesh, India
FoundersMohit Goel (Managing Director)
HeadquartersNoida, Uttar Pradesh, India
Area served
India
Key people
Mohit Goel (Managing director) Ashok Chaddha (President)
ProductsMobile phones
Smartphones
LEDs
Accessories
WebsiteRinging Bells (defunct)

Freedom 251
Main article: Freedom 251

The company attracted attention when it announced the Freedom 251, a 3G-based smartphone, at a price of ₹ 251 (the equivalent of $3.76 as of 29 October 2016) which makes it the world's cheapest smartphone. The phones were not delivered, it was a scam. Ringing Bells MD, Mohit Goel, claimed on 16 December 2016 that the company has already delivered 70000 phones and the remaining phones would be delivered soon.[3]

Controversies

Scam allegations

There are suggestions that the Freedom 251 sale is a scam.[4] It is alleged that the phone looks like a Chinese phone with the original brand label covered with whitener. The icons shown on screen shots are copied from Apple's iPhone. MP Kirit Somaiya describes the offer as a "huge scam" and has asked the government of Uttar Pradesh to investigate.[5]

As a result of these concerns, the payment gateway facilitator PayUBiz decided to withhold payment to Ringing Bells until the items were dispatched. In response, Ringing Bells stated that they would accept payment by cash-on-delivery for those customers who had placed orders but had been unable to make payment through the payment gateway before the offer closed.[6]

Ringing Bells has also been accused of fraud and non-payment of dues by its customer services provider Cyfuture.[7][8][9][10]

Arrest of Mohit Goel

Goel was detained on 24 February 2017 over fraud allegations, after the owner of Ghaziabad-based Ayam Enterprises filed an FIR alleging that Ringing Bells "defrauded" it of Rs. 16 lakh.[11][12] Mohit Goel has been arrested on allegations of fraud. Several analysts have described the phone as a "ponzi scheme".[13] Goel was again arrested by the Delhi Police on June 10, 2018 for allegedly extorting money in lieu of settling a rape case.[14] Goel was yet again arrested on 12 January, 2021 for defrauding dry fruit traders across India to the tune of Rs. 200 crore.

References
  1. "Here's what we know about Ringing Bells--the company behind the Rs 251 smartphone". Daily News and Analysis (DNA). 16 February 2016. Retrieved 18 February 2016.
  2. Registration date, status, and the company CIN (U32204DL2015PTC285276) are for Indian companies obtained by running a query from the Ministry of Corporate Affairs (MCA) page http://www.mca.gov.in/DCAPortalWeb/
  3. Bhargava, Yuthika. "Ringing Bells to import first 50 lakh phones: Govt. official". The Hindu. Retrieved 14 March 2017.
  4. "Here's Why The Freedom 251 Might Be The Scammiest Scam Of 2016". indiatimes.com. 18 February 2016.
  5. "Freedom 251 is a ponzi scam: BJP MP Kirit Somaiya", Indian Express, 20 February 2016. Accessed 22 February 2016
  6. Tech Desk, "Ringing Bells Freedom 251 now has cash on delivery option", Indian Express, 26 February 2016.
  7. Khan, Danish (27 February 2016). "Noida-based BPO Cyfuture files police complaint against Ringing Bells" – via The Economic Times.
  8. "News18.com: CNN-News18 Breaking News India, Latest News Headlines, Live News Updates". News18.
  9. "Freedom 251-maker Ringing Bells accused of fraud by its customer service provider". www.businesstoday.in.
  10. "35 couple tie the knot at mass marriage ceremony in Mumbai". 12 May 2014.
  11. "Mohit Goel, director of company that made Freedom 251 phones, detained for fraud". Hindustan Times. 23 February 2017. Retrieved 25 February 2017.
  12. Vatsa, Aditi (25 February 2017). "'Cheapest phone' maker Mohit Goel is Class VIII fail: Cops". The Indian Express. Retrieved 25 February 2017.
  13. "India police arrest 'world's cheapest smartphone' firm boss". BBC News. 24 February 2017. Retrieved 14 March 2017.
  14. "World's cheapest smartphone 'Freedom 251' maker Ringing Bells founder Mohit Goel arrested by police". The Financial Express. 10 June 2018. Retrieved 10 June 2018.
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