Freedom 251 Scam: How “The World’s Cheapest Smartphone” Fooled Millions

Dark Crime Diaries | Investigative Crime Report | August 2025

In February 2016, a little-known Noida-based company called Ringing Bells Pvt. Ltd. shook the Indian tech world with a sensational promise: a fully functional smartphone for just ₹251 (around $4). Marketed as Freedom 251, the phone was launched as a part of the Digital India dream, an initiative that aimed to bridge the digital divide by making technology accessible to all.

At the time, the average smartphone price in India was anywhere between ₹3,000 and ₹10,000. A 4G-ready phone at just ₹251 sounded impossible. But millions believed the dream. Within hours, the company’s website crashed due to overwhelming demand. The story made headlines worldwide, positioning India as a hub of “frugal innovation.”

But as days passed, it became clear that Freedom 251 was not the revolutionary product it was claimed to be; it was a massive scam that preyed on people’s hopes.

We chose to cover the Freedom 251 scam as it stands as a reminder of how hope for affordable technology can be turned into one of India’s biggest betrayals.

The Grand Launch

• The Indian Express reported that BJP leader Murli Manohar Joshi attended the Freedom 251 launch event in New Delhi, while Defence Minister Manohar Parrikar, who was expected, did not show up.
• The Wire highlighted that Murli Manohar Joshi was invited as a guest to the event, and his presence created the impression of political backing for the phone under “Make in India” and “Digital India.” (Important note: Ringing Bells itself never officially claimed any government subsidy or partnership, but the optics suggested otherwise.)
• The phone’s specifications sounded attractive for the price: 4-inch display, Android Lollipop, 1 GB RAM, 8 GB storage, dual camera, and even pre-installed apps showcasing the Indian flag.

This created an illusion that it was not only possible but also officially supported.

Too Good to Be True

The first signs of fraud appeared quickly:

1. Website Crash & Payment Glitches – On launch day, the Ringing Bells website went down within hours as lakhs tried to book the phone. Many users reported money being debited without getting a booking confirmation.
2. Copied Phones – Early review units given to journalists were actually rebranded Adcom handsets, with Adcom’s branding hidden using paint.
3. Missing Certifications – The company had no BIS (Bureau of Indian Standards) certification, which is mandatory for selling electronics in India.
4. Impossible Economics – Experts pointed out that just the manufacturing cost of such a phone was at least ₹2,000–₹3,000, making it financially impossible to sell at ₹251 without heavy subsidies.

Government & Regulatory Reactions

• Telecom Ministry officials stated they had no official partnership with Ringing Bells.
• The Indian Cellular Association (ICA) wrote to the Telecom Minister, claiming that even at the cheapest scale, a phone could not cost below ₹2,300.
• Consumer forums and IT experts began calling it a “Ponzi-style scheme,” warning that it was designed only to collect advance payments.

Even with mounting criticism, the company kept promising deliveries.

The Collapse of the Dream

• Ringing Bells claimed that it received over 7 crore registrations and advance payments from lakhs of customers.
• They promised deliveries starting in June 2016. However, only a few thousand units were reportedly dispatched, mostly to journalists for PR.
• By mid-2017, the company’s offices were either shut down or locked. Customers never received refunds or phones.

In effect, the ₹251 dream was dead.

Legal Troubles

• In 2017, Ringing Bells director Mohit Goel was arrested in Uttar Pradesh after a complaint from a distributor who claimed he was duped of ₹16 lakh.
• Goel was accused of fraud, cheating, and criminal conspiracy. Multiple cases were filed against him across states.
• Later reports suggested that Goel was trying to relaunch himself with other business ventures, but Freedom 251 remained one of India’s most infamous scam stories.

Why People Fell for It

The Freedom 251 scam worked because it played on India’s:

• Digital Aspirations: In the post-Jio era, affordable smartphones symbolized upward mobility.
• Government Branding Illusion: The association with “Make in India” optics and the presence of politicians gave it false credibility.
• Hope of the Poor: A ₹251 phone meant that even the poorest could access the internet, banking, and education.

In short, it preyed on people’s dreams of empowerment.

Legacy of the Scam

Today, Freedom 251 is remembered as a cautionary tale. It highlighted:

• How fake innovation can mislead millions if backed by flashy marketing.
• The lack of consumer protection and enforcement in India’s tech sector.
• The dangers of attaching political legitimacy to private ventures without due diligence.

While India has since grown into a global smartphone hub, Freedom 251 remains a reminder that not every “too good to be true” promise is worth believing.

Conclusion

The Freedom 251 saga was not just a failed smartphone launch; it was a betrayal of trust on a massive scale. For millions of Indians, particularly the poor and underprivileged, it carried the promise of digital empowerment: a world where every child could study online, where families could access government services, where opportunity was no longer limited by affordability.

But that dream was shattered. Instead of empowerment, people were left with empty hands, lost money, and broken faith. For those who had invested their meagre savings in the hope of a brighter future, Freedom 251 became a painful reminder that scams often thrive on people’s deepest aspirations.

In the end, it wasn’t just about a phone, it was about hope being sold as a product and stolen in return.

Even today, the story of Freedom 251 stands as a cautionary tale for India’s digital journey. It reminds us that real progress cannot be built on false promises, and that innovation without integrity can turn dreams into the very scams that destroy them.

Sources

• NDTV (2016): “Freedom 251: World’s Cheapest Smartphone Launched”
• The Indian Express (2016): “Freedom 251: Ringing Bells launches world’s cheapest phone at Rs 251”
• Hindustan Times (2016–2017): Coverage on the arrests of Ringing Bells director Mohit Goel
• BBC (2016): “India’s Freedom 251 smartphone: too good to be true?”
• The Wire (2016): Investigations into Freedom 251’s feasibility