The man behind the $4 smartphone in India has been arrested on fraud allegations, with some investigators calling the device a classic Ponzi scheme. Mohit Goel introduced the Freedom 251 device for pre-sale last year February which was priced at 250 rupees only, approximately $3.70 USD. The device was supposed to be released in June 2016.
The device pre-sale announcement produced a lot of customers, you will be surprised that many customers are yet to received their Smartphone for which they’ve paid. Ayam Enterprises said that it paid $45,000 USD – 3 million rupees, after the phone’s creator persuaded them to distribute the cheap phone.
The company says only 1.4 million in devices were given to them for distribution and staff working for Ayam Enterprises are receiving death threats from a customer who had not gotten their device. They should give them back their money if the phones couldn’t be delivered promptly.
The arrest has been confirmed by the BBC with police, Mr. Goel will appear in court, other complaints have been filed against him from other parts of India. Police say they’re investigating the allegations thoroughly for any evidence of a scam. However, the police spokesperson says that technology-related scam is too common in India.
We’ve always wondered the authenticity of these claims since the idea of a $4 smartphone sprang up, so it’s not shocking to see this is the way the story is going. If it sounds too good to be true, it probably is.
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