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Home >Tech-news >News >I-T department raids Ringing Bells’ Noida office

New Delhi: Two days after the launch of Freedom 251, billed as the cheapest smartphone ever, its maker Ringing Bells Pvt. Ltd. has come under the radar of the income tax department.

A three-member team from the department reached the company’s office in Noida on Friday, according to a report by the Hindustan Times.

The company has been under suspicion for the $4 price tag of its phone Freedom 251 and for failing to convince analysts with its explanation of how it was able to sell it at such a low price.

The company hasn’t partnered with any telecom operator nor is it being subsidized by the government.

With specifications which includes a quad core 1.3 GHz processor, 1 GB of RAM, a 4-inch screen, 8 GB internal storage, the market price of such a device would be around Rs. 4000 to Rs. 5000.

Noida-based Ringing Bells, which is selling the device for Rs. 251, claims that it will be able to sell at this price by making the phones in India, selling them online and using economies of scale.

The company, which claims to have received about 30,000 orders, has said that delivery of all handsets will be completed by June 30. Ringing Bells’.

According to a PTI report, the telecom ministry is believed to have sought a clarification from Ringing Bells for marketing its ‘Freedom251’ mobile phone without a BIS (Bureau of Indian Standards) certification; it has asked the Uttar Pradesh government to check the company’s credentials, according to Bharatiya Janata Party member of Parliament Kirit Somaiya.

The MP has approached various authorities including the telecom ministry, telecom regulator, consumer affairs ministry, corporate affairs ministry and the finance ministry with concerns he has about the phone, PTI said.

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