BJP MP Kirit Somaiya said he went through all the company papers and found it to be a “huge scam" and “a Ponzi bogus company scam.”

Somaiya told the national press so he appears to be prepared to face any libel charges if he is wrong. The BJP MP has approached telecom ministry, telecom regulator TRAI, consumer ministry, Sebi, corporate ministry, finance ministry, RBI and state governments to check various concerns he had over the outfit which claimed to be the mater of the world’s cheapest smartphone. Noida-based company Ringing Bells on Thursday started booking for the $3.60 phone and has said that delivery of all handsets will be completed by June 30.

The 3G handset, Freedom 251, features a 4-inch display, Qualcomm 1.3-GHz quad-core processor and 1 GB RAM, according to details shared by the company.

But Somaiya said he was “far from convinced” with claims given by Ashok Chadha, President of Ringing Bells. Chadha, in the defence of his company and product, had said that cost was brought down due to local assembling and online marketing.