Freedom 251 was a fraud. Director detained.

 Mohit Goel, the Director of Noida- based company Ringing Bells which had announced Freedom251 smartphones at an astonishingly low price of Rs 251 a piece, was detained today here on allegations of fraud, police said.

Mohit Goel shows Freedom 251 smartphones, priced at Rs 251 at a press conference in New Delhi, July 7, 2016. (AP File Photo)

Goel has been detained after owner of Ghaziabad-based Ayam Enterprises filed an FIR yesterday alleging that Ringing Bells "defrauded" it of Rs 16 lakh.

Ghaziabad Deputy SP Manish Mishra said Goel has been detained for interrogation in the matter.

In the FIR, Ayam Enterprises has claimed it was persuaded by Goel and others from Ringing Bells to take up the distributorship of the Freedom251 phones in November 2015.

"We paid Rs 30 lakh to Ringing Bells through RTGS on different occasions. But it delivered us product worth Rs 13 lakh only. Upon follow-up, we could get products plus money totaling Rs 14 lakh," it claimed in the FIR.

The proprietors of Ayam Enterprises guarantee that they were undermined with life in the event that they requested the rest Rs 16 lakh "over and over".

Ringing Bells had started the offer of Freedom 251 handsets, touted as the world's least expensive, by means of its site in February a year ago.

It arrived in a discussion, be that as it may, with some claiming it resembled ponzi conspire. The firm had guaranteed that around 30,000 clients had booked the telephone regardless of some glitch and seven crore individuals enlisted for it.