Ringing Bells Starts Refunding Money to Customers for Freedom 251 Mobile

“By going for Made in India components, we can save on the 13.8 per cent duty. Also, we will be selling online first and thus save the costs incurred on large distribution network,” he said.

Chaddha also rejected speculations of the handset being subsidised by the government.

“The phone will be manufactured in Noida and Uttaranchal. Two plants will be set up for Rs 250 crore each with a capacity of 5 lakh phones. The money will come in the form of debt and equity (1.5:1),” he said.

Chaddha said the equity is being met by the promoter family of the company that is “engaged in agri-commodities business” in Uttar Pradesh but declined to give further information.

However, people in industry and some politicians expressed doubt over the claim. Telecom Minister asked the Department of Electronics and IT to look in to matter. Ringing Bells has also come under the scanner of Excise and Income Tax Departments as debates around the feasibility of offering a handset for Rs 251 rages on.

According to the sources, the I-T Department is looking into the financial structure of the company and has obtained documents, including those from the Registrar of Companies (RoC), in this regard.

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