Published On: Wed, Feb 24th, 2016

Govt to Take Action if ‘Ringing Bells’ Fails to Deliver

The government in examining Ringing Bells Pvt Ltd, which grabbed attention with its plans to sell a smartphone for Rs 251. Government will take action against “Ringing Bells” if it fails to deliver smartphone “Freedom 251” as it promised.

Govt to Take Action if ‘Ringing Bells’ Fails to Deliver“We have received a lot of communication raising doubts over the company’s plan. So what we are doing is taking precautionary measures… We inquired into how prepared they are, whether they can provide a phone for Rs 251 or not, whether they have the BIS certificate or not…,” Communications and IT Minister Ravi Shankar Prasad said.

Government doesn’t want any dispute to arise later. If there will be any then the government will take action. “If there are any disputes, we will take action as per the law. Our department is keeping a watch,” he said.

Ringing Bells President Ashok Chaddha and promoter Mohit Goel met govt officials to explain their business model after receiving summon. Govt will now monitor these responses.

Recently, ringing bells which is new to the mobile industry unveiled a 3G smartphone priced at Rs 251 named “Freedom 251”. Mobile industry has raised concerns about availability of a smart phone at such price. It is the world’s cheapest smartphone until now.

New entrant Ringing bells said that the manufacturing cost of phone is Rs 2500 but this will be recovered and they will benefit from economies of sale. The company received over six crore registrations for its smartphone ‘Freedom 251’ . The company has promised to deliver 50 lakh phones by June 30.