Freedom251 phone firm owner arrested for fraud

Mohit Goel, Director of Noida-based company Ringing Bell, which was offering smartphones at a very low price of Rs 251 under its Freedom 251 scheme, was arrested on Friday, following allegations of cheating and fraud.

Goel was detained after Ayam Enterprises, another company in the same district, filed an FIR on Wednesday, claiming that Goel duped him to the tune of Rs 16 lakh. "Goel has been detained for interrogation in connection to the FIR registered by the Ayam Enterprises," Deputy SP Manish Mishra said.

According to the FIR, the complainant has alleged that Goel persuaded them in November 2015 to take up the job of distributing the "cheapest phone in the country" . "We paid Rs 30 lakh to Ringing Bells through RTGS on different occasions. But it delivered us products worth Rs 13 lakh only," the FIR read.

The owners of the company also alleged that when they asked for a return of their money, they were threatened.

In February, 2016, Ringing Bell had started selling Freedom 251 handsets through its website. The company, however, landed in a soup after people alleged that it was a fraud. According to the company, as many as 7 crore people had registered on its website to buy the phone.