Freedom251 sets off alarm bells, firm to refund money
The company, Ringing Bells, has also faced
queries from Income Tax department, the Enforcement Directorate and Department
of Electronics and IT. ED officials are understood to have quizzed the
promoters of the company on their business model. When contacted by TOI on
Wednesday, Ashok Chadha, the president of the company and the main associate of
promoter Mohit Goel, said, "all is well".
He denied reports that the company had shut shop in Noida. "We are very much in business, and are not running away," he told TOI. "The problem with our office has to do with the owner of the plot who seems to be having a issues with the Noida Authority for renting out a property meant for industrial use as a commercial office", he said, clarifying that if the landlord is not able to settle issues with the authorities, the company will shift to a nearby premises.
Questions have also been raised on the advance
payment accepted by the company for future deliveries of smartphones. Chadha
clarified that the company had received nearly Rs 75 lakh in online booking
from 30,000 prospective customers, which it now plans to refund. "This
money never came to us and was not even supposed to come to us until we deliver
the handsets. That's in line with the compliance rules of the payment gateway.
In any case, we have now decided to refund this money and will go for
cash-on-delivery," Chadha said. TOI could not verify whether those who had
paid the advance had received refund.
The company maintains it will start delivering the phones from April 15 at the committed price of Rs 251, on which it will earn a profit of Rs 31. "Our business plan is intact. As far as funding is concerned, we are running short cycles (of orders), and thus will require only some money," Chadha said, without elaborating further on the sources of funding. There has also been trouble for the company from a Noida-based BPO, Cyfuture, which provided call center services for booking and enquiries about the phone. Cyfuture has filed a police complaint alleging non-payment of dues by Ringing Bells. Ringing Bells claims that the BPO failed to provide satisfactory services and its contract has been terminated.
