# Freedom 251 > smartphone scam in India **Wikidata**: [Q22813223](https://www.wikidata.org/wiki/Q22813223) **Wikipedia**: [English](https://en.wikipedia.org/wiki/Freedom_251) **Source**: https://4ort.xyz/entity/freedom-251 ## Summary The Freedom 251 was a smartphone marketed in India at an unusually low price of ₹251 (approximately $3.50 USD), sparking widespread interest and skepticism. Developed by Ringing Bells Private Limited, the device ran on the Android operating system and was promoted as part of a government initiative to increase digital accessibility. However, the project was quickly exposed as a scam due to the company's inability to deliver the product as promised, leading to legal action and accusations of fraud. ## Key Facts - **Price**: Marketed at ₹251, significantly below typical smartphone production costs. - **Manufacturer**: Ringing Bells Private Limited, an Indian company with no prior notable products. - **Operating System**: Android (version unspecified). - **Launch Date**: Announced in February 2016. - **Scam Allegations**: Accused of fraudulent sales practices, including non-delivery of devices and misuse of pre-order funds. - **Legal Action**: Indian authorities launched investigations, and First Information Reports (FIRs) were filed against the company. - **Specifications**: 4.5-inch display, 1.3 GHz quad-core processor, 1 GB RAM, 8 GB internal storage, 3.2 MP rear camera, and 1450 mAh battery. - **Website**: http://www.freedom251.com/ (now defunct). ## FAQs ### Q: Why was the Freedom 251 considered a scam? A: The smartphone was priced far below manufacturing costs, and the company failed to deliver orders, leading to accusations of fraud and legal action. ### Q: What happened to Ringing Bells after the scandal? A: The company faced multiple investigations, including from India’s Ministry of Home Affairs, and its operations were shut down amid public backlash and financial irregularities. ### Q: Was the Freedom 251 ever officially released? A: A limited number of units were distributed, but the majority of pre-orders were never fulfilled, and the product was never mass-produced as claimed. ## Why It Matters The Freedom 251 scandal highlighted critical issues in India’s burgeoning tech market, including inadequate regulatory oversight and consumer vulnerability to fraudulent schemes. The device’s implausibly low price raised immediate red flags, yet it garnered over 30 million pre-orders, reflecting both the demand for affordable technology and the lack of skepticism toward too-good-to-be-true offers. The case underscored the need for stronger consumer protection laws and due diligence in emerging markets. It also damaged public trust in low-cost smartphone initiatives and served as a cautionary tale for startups attempting to disrupt markets through unsustainable pricing models. ## Notable For - **Lowest-Priced Smartphone Claim**: Marketed as the world’s cheapest smartphone, priced at ₹251. - **High-Profile Scam**: Became a national controversy in India, attracting media scrutiny and government intervention. - **Legal Precedent**: Led to increased regulatory focus on crowdfunding and pre-order sales practices in India. - **Technical Limitations**: Despite advertised specifications, delivered units (where provided) often had subpar quality and outdated software. ## Body ### Launch and Pricing The Freedom 251 was announced in February 2016 by Ringing Bells, a little-known Indian electronics firm. Priced at ₹251—less than $4 USD—the device was touted as part of the Indian government’s “Digital India” initiative to expand access to technology. The price point was immediately criticized as unsustainable, as even basic smartphones typically cost manufacturers over ₹2,000 to produce. ### Scam Allegations Investigations revealed that Ringing Bells lacked the infrastructure to manufacture or distribute the device at scale. The company’s website crashed under the load of millions of pre-orders, and payments were collected without proper security measures. Critics accused the firm of using the campaign to harvest user data and generate publicity for subsequent fundraising efforts. ### Legal and Regulatory Fallout By March 2016, India’s Ministry of Home Affairs launched a probe into the company’s operations. The Uttar Pradesh Police filed FIRs against Ringing Bells’ directors, alleging fraud and cheating. The company’s offices were raided, and its bank accounts were frozen. Ringing Bells denied wrongdoing but ultimately failed to deliver more than a handful of devices, many of which were refurbished or non-functional. ### Technical Specifications - **Display**: 4.5-inch qHD (960x540 pixels) - **Processor**: 1.3 GHz quad-core - **Memory**: 1 GB RAM, 8 GB internal storage - **Camera**: 3.2 MP rear, 0.3 MP front - **Battery**: 1450 mAh - **Connectivity**: Dual SIM, Wi-Fi, Bluetooth 3.0 ### Aftermath Ringing Bells’ director, Mohit Goel, announced the company’s closure in 2017, citing financial losses and reputational damage. The scandal led to increased scrutiny of low-cost smartphone vendors and prompted calls for stricter e-commerce regulations. The Freedom 251 remains a symbol of both India’s aspirations for technological inclusivity and its challenges in policing fraudulent business practices. ## References 1. [Source](http://indianexpress.com/article/technology/tech-news-technology/freedom-251-ringing-bells-bpo-case-fraud-scam/) 2. [Source](http://tamil.thehindu.com/india/ரூ251க்கு-ஸ்மார்ட்போன்-பாதுகாப்புத்-துறை-அமைச்சர்-அறிமுகம்/article8249557.ece) 3. [Source](http://gadgets.ndtv.com/mobiles/features/freedom-251-bookings-now-open-read-this-before-you-buy-one-803750)