Lok Sabha Question No. 278 (STARRED), answered on 2016-03-16
Subject: Freedom 251 Mobile
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: SUNIL BALIRAM GAIKWAD, BIDYUT BARAN MAHATO

## GOVERNMENT OF INDIA

## MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (DEPARTMENT OF ELECTRONICS AND INFORMATION TECHNOLOGY)

## LOK SABHA STARRED QUESTION NO.*278

TO BE ANSWERED ON 16.03.2016

## FREEDOM 251 MOBILE

## *278     DR. SUNIL BALIRAM GAIKWAD: SHRI BIDYUT BARAN MAHATO:

Will the Minister of Communications and Information Technology be pleased to state:

- (a) whether the Government has taken note of launch of the world's cheapest smart phone 'Freedom 251' in the country recently;
- (b) if so, the details thereof and whether any complaint has been received by the Government against the company;
- (c) if so, the details thereof and the action  taken by the Government thereon;
- (d) whether the Department of Electronics and Information Technology has set up an internal panel to assess the viability and credibility of this smart phone/ project; and
- (e) if  so,  the  details  thereof  and  the  other  steps  taken/being  taken  by  the  Government  to protect the interest of customers?

## ANSWER

MINISTER FOR COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) to (e):    A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. *278 FOR 16.03.2016  REGARDING FREEDOM 251 MOBILE

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(a) and (b):  The phone 'Freedom 251' was advertised in media to be sold at a price of Rs.251/(plus  Rs.40/-  for  shipping),  by  the  company  M/s.  Ringing  Bells  Pvt.  Ltd.  The  phone  was advertised  with  following  technical  specifications:  1.3  GHz  Quadcore  processor,  running  on Android Lollipop 5.1, 1 GB RAM, 8GB internal storage expandable upto 32GB, 4' qHD Screen, 3.2 MP AF Rear and 0.3 MP front camera and 1450 mAh Battery. Some concerns were raised regarding the offer made by the said company. The Indian Cellular Association (ICA) vide letter dated 17.02.2016 inter-alia informed that a smart phone with the aforesaid specifications cannot be  manufactured  and  made  available  at  such  a  low  price  of  Rs.251/-.  Others  have  expressed concern  on  the  genuineness  of  the  offer  and  have  urged  that  consumer  interest  be  suitably protected. Some Members of Parliament had also complained.

- (c),  (d)  and  (e):    The  Government  through  various  Departments  is  taking  steps  to  protect  the interest of consumers. A complaint has been received against M/s. Ringing Bells Pvt. Ltd. by the Department of Revenue, Ministry of Finance. The Directorate of Enforcement is investigating the matter for possible contraventions of the provisions of Foreign Exchange Management Act, 1999.  Further, Ministry of Corporate Affairs has taken suo motu action on the news coverage by TV channels/newspapers etc.  and  sent  email  to  Serious  Fraud  Investigation  Office  (SFIO)  on 19.02.2016 to keep a watch on the activities of the company which appear to be suspicious. In response SFIO has sent their Research report dated 23.02.2016 prepared by Market Research & Analysis  Unit  (MRAU)  along  with  proposal  to  call  for  information  under  section  206  of  the Companies Act, 2013 from Registrar of Companies (ROC). On the basis of the report of SFIO, Ministry of Corporate Affairs vide Letter dated 25.02.2016 has advised Regional Director (North Region) to direct ROC, Delhi to take up the matter with the company and its directors under section 206(1) of the Companies Act, 2013 and send a report through the Directorate.

Also, an internal committee was constituted by the Department of Electronics and Information Technology (DeitY) on 20.02.2016 to review the issues involved in Freedom 251 mobile phone. M/s.  Ringing  Bells  Pvt.  Ltd.  was  informed  vide  DeitY's  letter  dated  22.02.2016  that  mobile phones have been mandated under 'Electronics and Information Technology Goods (Requirements  for  Compulsory  Registration)  Order,  2012'  for  compliance  to  Indian  Safety standards w.e.f. 13 th September 2015. Therefore, the company was required to comply with BIS registration based to Indian safety standards.

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