Noida-based Ringing Bells, which has > promised to sell smartphones for Rs. 251 apiece, has claimed to have started refunding money to customers due to negative speculation around its claim.

“There was a lot of negativity around us so we have decided to take money from customers only after delivering phones to them. We are refunding money to those who have paid for booking the phones and giving them an option of cash on delivery,” the company Director Mohit Goel said.

About >30,000 people have paid for booking the phones and over 7 crore people registered for it. Ringing Bells president Ashok Chaddha had explained that the manufacturing cost of the phone was about Rs. 2,500.The payment was facilitated by CCAvenue and PayU Biz.