Noida-based Ringing Bells decided to stop accepting bookings for the Freedom 251, dubbed the world's cheapest smartphone. Instead, the company will require customers to pay only after the handset has been delivered.
The company promised to return the pre-booking money of 30,000 customers who registered on the official booking site on the first day the $4 handset went on sale. Customers can expect to receive the refund in their account any time within the week.
"In furthering our service to you, we, at Ringing Bells, have decided to offer 'Cash on Delivery' terms vs the previous Offer of via 'Payment Gateway,'" says the Freedom 251 team. "By this, you, our esteemed Customer, will be required to make payment only when the phone is delivered to you."
Ashok Chadha, president of Ringing Bells, assures customers that their money is safe and is being kept in an escrow at a bank. Those who sent payments through gateways such as PayU Biz and CCAvenue will be advised by their respective banks for the refund procedure.
Chadha adds that the company has already given a letter to the bank and hopes that the money will be refunded this week so long as there will be no procedural delay.
When Ringing Bells launched the Freedom 251 smartphone on Feb. 18, it received as many as 30,000 orders on the first day alone. The company also reportedly received more than 70 million registrations, which eventually caused its payment gateway system to crash.
The company had imposed a first-come, first-served policy and said it will choose the rest of the registered customers who will get the first 2.5 million available handsets before June 30, during the first phase of the sale.
Amid the excitement and worldwide attention brought by the handset, Ringing Bells is now facing an FIR and defamation charges from Cyfuture, a BPO and data center also based in Noida.
Anuj Bairathi, CEO and founder of Cyfuture, says the company has filed an FIR against Ringing Bells on the basis of fraud and non-payment of dues. There is also the possibility to file a defamation case after the Freedom 251 maker had allegedly "accused" the company of non-performance which, as Bairathi had commented, tarnished the company's image.
Amitabh Kant, secretary of the Department of Industrial Policy and Promotion, also made some clarifications on the issue of the phone as part of the "Make in India" and "Digital India" initiatives. According to the official, Freedom 251 is not, and has never been, a government project.
Chadha hopes that the new "cash on delivery" mode of payments for the Freedom 251 will promote transparency and clear up any misconceptions on the handset.
