India police arrest cheap mobile maker on fraud charges

LUCKNOW, India (AP) — Police say they have arrested the director of an Indian company that said it was selling the world’s cheapest smartphone on fraud charges.

Police say Mohit Goel was arrested late Thursday in the northern town of Ghaziabad following a complaint that his company, Ringing Bells, had not supplied the handsets that a phone distribution company had paid for.

The launch of the smartphone priced at 251 rupees ($3.70) in February 2016 was widely reported by the Indian media. Many customers who bought the phones said at the time that they were happy with them.

Police spokesman Rahul Srivastava said Friday that the arrest was made after the distribution company complained that it had paid Goel 3 million rupees, but had received handsets worth only 1.3 million rupees.