• The company announced a smartphone for just ₹251, an unbelievable price.
• The promise of a super-cheap, high-tech product attracted mass pre-orders.
• Once the money was collected, the company failed to deliver most orders.
• It was later revealed that the company had no proper supply chain to fulfill the demand.
• Financial impact: ₹30+ crore estimated fraud from thousands of victims.

5. Freedom 251 Smartphone Scam (2016)

Steps of the Fraud:

1. Unbelievable Offer Announcement:
   • In February 2016, Ringing Bells Pvt. Ltd. launched the Freedom 251 smartphone, claiming it would revolutionize mobile accessibility in India.
   • The phone was advertised at an incredibly low price of ₹251, making it seem like an affordable smartphone for all.
2. Massive Pre-Orders & Public Hype:
   • The company opened online bookings and quickly received over 60 million pre-orders from eager buyers.
   • High-profile figures, including politicians and celebrities, endorsed the product without verifying its authenticity.
   • The company collected crores of rupees in prepayments from customers.
3. Failure to Deliver & Growing Suspicion:
   • Despite promising deliveries within months, customers never received their orders.
   • Investigations revealed that Ringing Bells had no actual manufacturing capacity or agreements to produce smartphones at such a low price.
   • The Indian government and industry experts questioned how the phone could be sold at such a price, as even the raw materials alone cost much more.
4. Legal Actions & Investigation:
   • The Indian government launched an investigation into the company, revealing that the business model was unsustainable and likely a scam.
   • Authorities arrested Mohit Goel, the company’s founder, after complaints were filed by suppliers and customers.
   • The company was accused of fraud, misleading advertising, and financial irregularities.
5. Collapse of the Scheme & Aftermath:
   • Ringing Bells shut down operations, and millions of customers lost their money.
   • Legal proceedings continued for years, with Goel later getting arrested for other fraud cases.
   • The Freedom 251 scam became one of India’s most infamous e-commerce frauds, highlighting the dangers of “too-good-to-be-true” offers.