The Allahabad High Court on Wednesday granted bail to Mohit Goel, Managing Director of Noida-based Ringing Bells that came into the limelight after launching the world's cheapest smartphone 'Freedom 251.'
Goel and Sumit Kumar, director, Ringing Bells, were arrested in February after Ghaziabad-based Ayam Enterprises alleged that Goel 'defrauded' the company of Rs 16 lakh.
"The judge found no incriminating evidence in the case. We presented our case where we highlighted the compromise agreed upon by the concerned parties. Judge took notice of the facts and accepted the bail plea," lawyer Prashant Vyas who presented the case on behalf of Ringing Bells, said in a statement.
Kumar was also granted bail.
The court also observed that a compromise has already been agreed upon between the parties involved in the case.
In the FIR, Ayam Enterprises had alleged it was persuaded by Goel and other company officials to take up the distributorship of "Freedom 251" (costing less that $4) smartphones in November 2015.
In India, each phone was to cost Rs 250.
"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 totalling Rs 14 lakh," the company said.
After announcing that it had delivered 5,000 'Freedom 251' smartphones to customers in July last year, Ringing Bells said it would deliver 65,000 more to those who had booked the device in cash on delivery (CoD) mode.
After that, no new numbers were shared and the company shut its offices, burying the 'Freedom 251' dream.