Rs 2 Crore Check bounce case filed against Freedom 251 Smartphone Makers

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Early this year, a buzz was made in the Indian market as Ringing Bells Private Limited has offered a sale for its Freedom 251 in India at the promotional price of Rs. 251 claiming it to be the world’s cheapest smartphone. Now the smartphone makers are called to the Delhi court in a two-crore cheque bounce case which has been filed by a private firm.

The accused – M/s Ringing Pvt LT, its Managing Directors Anmol Goel and Sumit Goel, CEO Dhaarna Goel, and President Ashok Chaddha have been called to the court on a complaint filed by M/s Aryan Infratech Pvt LTD. The order states that the accused had failed to pay the amount even after sending the legal notice when the check got dishonored. Metropolitan Magistrate Snigdha Sarvaria noted the same.

Ringing Bell planned to sell 5 million phones initially and took booking for 30,000 at a price of Rs. 251 for each unit. It was also claimed that they took a booking of Rs. 17.5 million which was pre-paid by the customers. Later the company promised to provide a refund to the clients who pre-booked with them.

“There is sufficient material available on record to summon all the accused. Therefore, a prima facie case punishable under section 138 Negotiable Instrument Act…Issue summons to all the accused,” the court said while posting the matter for April 28 for the next hearing.

According to the complaint, the accused had issued a cheque in favor of the complainant firm AIPL towards discharge of their liability. However, it was returned by the bank on October 28 due to “insufficient funds”.

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