Ringing Bells director Mohit Goel said that the shipment of Freedom 251 3G smartphones will commence on 28th June. These phones will be sent to the customers who booked in February on Cash-On-Delivery (COD) basis. During the pre-booking process, the website crashed due to too much load but at least 30,000 people completed the process. This is the world’s cheapest 3G enabled smartphone and it attracted much scrutiny resulting in the company refunding its customers.
Following the initial frenzy, sale of Freedom 251 was being touted as a ponzy scheme. Ringing Bells President Ashok Chaddha had said that each phone’s manufacturing cost is about 2,500 INR but he would make up the difference by saving duties, selling online and via debt and equities. Two factories were to be set up in Noida and Uttaranchal, each costing 25o crore each. But the validity of his plans have been brought into question time and again. Department of IT, Income Tax and Excise Departments are already investigating the case.