There have been hundreds of scams happening in the world, but there are only a few which grabbed the attention of all. Of these, one of the most infamous scams is the one linked to the mobile phones, which was known as Freedom 251.
This is where a scheme allowed people to book a mobile phone for just ₹251. It was indeed one of the most infamous scams and also a scam where the world’s best technology was available for the lowest price. But what was this scam all about?
Well, if you are also looking for an answer to the same, read this guide and know everything you need for the Freedom 251 phone scam.
What is Freedom 251 Scam?
The Freedom 251 scam refers to the controversy around a smartphone. It was launched in 2016 by a company called Ringing Bells. It involved high scale advertising of a phone named Freedom 251. It was advertised as the world’s cheapest smartphone at just ₹251. It promised features like a touchscreen, dual cameras, and Android OS. These are all the specs that normally cost thousands of rupees.
However, soon after the launch, people faced so many doubts. There was confusion about its feasibility. Reports suggested that the actual cost of manufacturing was much higher. Then people found that deliveries were delayed. And the worst part, many buyers never received the phone. Investigations revealed alleged financial irregularities, making the Freedom 251 phone one of India’s biggest tech frauds.
The key features of the Freedom Phone as advertised by the company, are as follows:
- RAM: 1 GB
- Storage: 8 GB internal memory (expandable up to 32 GB via microSD card)
- Processor: 1.3 GHz Quad-Core
- Battery: 1450 mAh
- Camera: 3.2 MP rear camera and 0.3 MP front camera
- SIM Support: Dual SIM
- Warranty: 1-year manufacturer warranty
- Network: 3G GSM connectivity
- Service Centers: Claimed availability of more than 600+ service centers across India
All these features in the year 2016 were no less than the features of a high-end model. In fact, it was believed at that time that this phone held the capability to change, or rather say revolutionize the Indian telecom industry. Think about it, this was a big claim, and this was one of the main reasons why people rushed to book this smartphone.
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How the Freedom Mobile 251 Was Marketed
The launch of the Freedom 251 phone was not presented as just another smartphone release. Rather, it was marketed as a national movement. Ringing Bells positioned the device as a symbol of “Digital India.”
It promised that this device would act as a bridge. It will reduce, or rather fill the gap between technology and affordability. The company claimed that by pricing it at just ₹251. At that time, it seemed that the dream of every Indian household to have a smartphone was near accomplishment.
To strengthen credibility, the phone was launched at a grand event attended by political figures, further giving people the impression of government backing. Advertisements highlighted features that people were actually looking for. In fact, these were the features that people usually saw in phones of ₹3,000–₹5,000. And yes, this was a price that many households could not really afford for a phone.
The company promised that this was a large-scale project and would fulfill the needs of every single person in the country. They also got heavy media coverage. Hence, the Freedom phone 251 quickly became a sensation and attracted millions of pre-orders within days.
Controversies and Scam Allegations
The buzz around the Freedom 251 phone was short-lived. It soon turned to a series of doubtful questions. As soon as it was launched, journalists and industry experts began questioning. The most crucial query was how a smartphone with such features could be sold at just ₹251. The reason was that they knew that the manufacturing cost itself was estimated at around ₹2,500.
The device that was handed to the media during the event raised eyebrows. It was not the promised Freedom 251 model but an existing phone from another brand with its logo covered. This discovery made many people suspicious about the company’s intentions.
When bookings opened, lakhs of people rushed to order the phone. But there was only an advance payment option available. This was a red flag for sure. No option for the delivery based payment was there.
Government agencies and consumer groups stepped in, questioning the legitimacy of the scheme. Investigations revealed inconsistencies in the company’s financial claims, lack of proper infrastructure, and false promises about large-scale manufacturing units and service centers. What started as a dream of a budget smartphone for every Indian quickly turned into what is now remembered as the Freedom 251 scam.
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Aftermath of the Freedom 251 Bookings
The announcement of the Freedom 251 phone created a storm across India. Within hours of opening bookings, the company received lakhs of orders, so many that the website had to stop taking further requests. Reports suggest that in the very first phase of bookings alone, Ringing Bells collected nearly ₹145 crore from customers eager to own the so-called “world’s cheapest smartphone.”
But soon after the money came in, the reality was far from the promises. The company had assured buyers that deliveries would begin by 30th June 2016, but that date came and went with no handsets reaching consumers. The timeline was pushed to December 2016, and then quietly delayed again. Months passed, yet most customers never saw the product they had paid for.
Red Flags Before the Launch
Even before deliveries began, industry experts had raised doubts. Telecom officials highlighted that the minimum production cost of such a phone was around ₹2,300, making it impossible to sell at ₹251 without huge subsidies. Many declared the offer a scam from day one.
When questioned, the company brushed these concerns aside. They argued that they were using “innovative marketing techniques” and in-built apps to cut costs, a claim that was met with skepticism since established smartphone makers had never managed to achieve such drastic reductions.
Legal Troubles and Investigations
As complaints about non-delivery piled up, some buyers demanded action. While many chose to remain quiet, considering it was “just ₹251” while a few took their grievances forward. Under pressure, the company shifted blame, claiming it needed ₹50,000 crore in government funding to make the project a reality, though this was never mentioned at launch.
Ringing Bells also claimed to have outsourced production to firms like “V Technology” and “Eminence Technology,” but both companies publicly denied having any such orders. Meanwhile, promises of refunds through payment gateways never materialized, leaving customers frustrated.
The bigger blow came when distributors revealed they had been duped into depositing far larger sums than ordinary buyers, with no phones or returns in sight. These complaints added to the mounting pressure.
Arrest of the CEO and Closure
In 2017, the story reached its breaking point when the company’s CEO, Mohit Goyal, was arrested. Investigations showed not only were customers deceived, but distributors and even service providers were cheated. One such victim was “Sai Future,” a call center contracted to handle customer queries, which never received payment for its services.
Although Mohit Goyal was later granted bail, he was arrested again. This was in separate cases. But one thing was common, and that was that all these cases were about fraud, blackmail, and corruption. Eventually, Ringing Bells collapsed.
At the end of all, it left the people with the infamous Freedom 251 scam. This was indeed a cautionary tale in India’s tech and startup landscape.
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Lessons Learned from the Freedom 251 Scam
The Freedom 251 scam left behind some important lessons for all of us to consider. These are:
- If it sounds too good to be true, it probably is.
- Advance payments can be risky.
- Government association should be verified.
- Transparency matters in business.
- Regulatory bodies must act early.
In the end, the Freedom 251 case showed that dreams of digital inclusion cannot be built on false promises. It stands as a warning to stay vigilant in a world where scams often disguise themselves as “too-good-to-miss opportunities.”
Conclusion
The Freedom 251 phone was launched as a bold promise. It gave us the idea that one can bring affordable technology to every Indian. But it ended up as one of the country’s most infamous scams. From undelivered orders to false claims about manufacturing units and service centers, the story exposed how easily excitement can be turned into exploitation.
For consumers, this is a reminder to buy things with caution. Jumping onto everything that seems so good can, at times, end up in a sham. Also, you must be very cautious when you invest your money.
It highlights the importance of credibility and transparency. The Freedom 251 scam may have faded with time, but its lessons remain vital for both buyers and entrepreneurs in India’s fast-growing digital market.
Frequently Asked Questions (FAQs)
What was the Freedom 251 phone?
It was a smartphone advertised in 2016 for just ₹251, claiming to be the world’s cheapest phone.
Why did people call it a scam?
Because most buyers never got the phone, promises were not fulfilled, and many things about the company seemed suspicious.
Did the company really deliver the phones?
Only a few phones were reportedly delivered. Most people who booked it never received anything.
Was anyone punished for this?
Yes. The company’s CEO, Mohit Goel, was arrested in fraud-related cases.
What’s the main lesson from the Freedom 251 incident?
If an offer sounds too good to be true, we should double-check before paying money.
