New Delhi: There is more trouble in store for Noida-based startup Ringing Bells Pvt. Ltd. that last month launched with much fanfare the world’s cheapest Rs.251 (less that $4) smartphone. Domestic feature phone brand Advantage Computers’ (Adcom) on Friday announced it would take legal action against Ringing Bells who allegedly presented refurbished forms of its smartphone.

During the launch last month in the presence of veteran Bharatiya Janata Party (BJP) leader Murli Manohar Joshi in the capital, Ringing Bells unveiled “Freedom 251” and distributed some “prototypes” to the media which turned out to be Adcom handsets, Adcom’s founder and chairman Sanjeev Bhatia said.
Ringing Bells had unveiled what is being touted as the world’s cheapest smartphone. The devices which were showcased resembled that of Adcom’s Ikon 4, which is already available in the Indian market at Rs 3,999.
Later, Ringing Bells president Ashok Chadha told IANS that they only gave Adome handsets as “samples” to a section of the media and the real “Freedom 251” will be a new product with all promised features.

“We are deeply grieved by this incident where our mobile phone has been presented to masses for Rs.251, and therefore, would not hesitate from taking any legal actions against the company, in case the entire fiasco impacts Adcom’s brand name or subsequently we face any other kind of losses,” Bhatia said in a statement on Friday.

“Yes, it is true that although we sold the handsets to Ringing Bells earlier, like we sell Adcom mobiles to lakhs of users, we were absolutely unaware of the reselling plans of the company in question,” he added.

“Furthermore, we still haven’t been able to evaluate their pricing policy as we sold the handsets at Rs.3,600 per unit (to Ringing Bells),” Bhatia said.

Earlier, the Noida offices of Ringing Bells were found shut on Thursday over land ownership issues with Noida Authority.

Chadha had announced that the Rs.251 (less than $4) “Freedom 251” smartphone customers will be required to make payment only when the smartphone is delivered to them.

“The company has decided that we will, henceforth, offer ‘cash on delivery’ mode of payments for those who have placed an order for the ‘Freedom 251’ smartphone. This will ensure further transparency and clear any misgivings,” Chadha said.

The company plans to give 25 lakh handsets in the first phase before June 30.

Taking the world by surprise, Ringing Bells launched “Freedom 251” smartphone that, it said, has been developed “with immense support” from the government.

As the makers of the smartphone went to town with claim of being part of Prime Minister Narendra Modi’s “Make in India” and “Digital India” initiatives in the last few days, a top government official clarified on Thursday that the government has nothing to do with the “Freedom 251” smartphone.

“This is not a government project. ‘Make in India’ team has nothing to do with this,” wrote Amitabh Kant, secretary of the department of industrial policy and promotion (DIPP), in a Twitter post.