Adcom to sue Ringing Bells

Domestic feature phone brand Advantage Computers' (Adcom) has said it may consider a legal action against Ringing Bells, the Noida-based start-up, which claimed to manufacture the world's cheapest smartphone.

Adcom founder and chairman Sanjeev Bhatia said the manufacturer of Rs. 251 (less that USD 4) smartphone, distributed the Adcom handsets to the media during the launch last month.

"We are deeply grieved by this incident where our mobile phone has been presented to masses for Rs.251, and therefore, would not hesitate from taking any legal actions against the company, in case the entire fiasco impacts Adcom's brand name or subsequently we face any other kind of losses," Bhatia said in a statement.

"Yes, it is true that although we sold the handsets to Ringing Bells earlier, like we sell Adcom mobiles to lakhs of users, we were absolutely unaware of the reselling plans of the company in question. Furthermore, we still haven't been able to evaluate their pricing policy as we sold the handsets at Rs.3,600 per unit (to Ringing Bells)," Bhatia added.

Meanwhile, with Noida office of the start-up already being shut over land ownership issues with the Noida Authority, the company clarified that they would be returning the customers' money.

"While speculation is rife regarding the legitimacy of our occupying the premises we operate from, i.e., our corporate office at B-44, Sector 63, Noida 201301 in Uttar Pradesh, we wish to make it clear that the current dispute regarding the nature of business conducted at the property is between NOIDA authority and our landlord," the company said.

President of Ringing Bells, Ashok Chadha, had announced that Freedom 251 smartphone would be only cash on delivery.

"The company has decided that we will offer 'cash on delivery' mode of payments for those who have placed an order for the Freedom 251 smartphone. This will ensure further transparency and clear any misgivings," Chadha said.