Mohit Goel, one of the partners in the Noida-based company Ringing Bells that had announced cheapest smartphone Freedom 251 at a price of Rs 251 in 2016, was arrested on Sunday for allegedly trying to extort money from a businessman. Two others were also arrested in this connection.

The three were reportedly trying to extort money from the businessman to settle a rape case.

According to media reports, Goel, his aide and a woman conspired to extort money from the businessman after implicating him in a case of gangrape.

The woman had filed a case in Alwar district of Rajasthan on March 6, alleging she had been raped by five businessmen. The woman alleged that she was called to attend an event at a hotel where she was raped by the five. The police had arrested all the five accused. Later, during investigation, it reportedly found that the accused were being threatened for money.

A complaint was received at the Netaji Subhash Place police station in Delhi against a gang for allegedly extorting money. The gang had allegedly demanded Rs 5 crore from the businessman to “settle” the case.

On Sunday, the alleged rape victim, along with others, arrived at the businessman’s office to take the money. They were nabbed from the spot.

“The police have arrested three members of a gang, who were trying to extort money to settle a rape case registered by one of them against the brother of the complainant and others in Rajasthan,” said Deputy Commissioner of Police (North West) Aslam Khan.

Mr Goel was the founder of Ringing Bells which created waves around the country by offering Freedom 251 smartphones for an unbelievable price of Rs. 251. It was supposed to be the world’s cheapest smartphone.

According to the reports, around 30,000 customers paid for it and pre-ordered the phone online. Seven crore people registered to buy the phone when it went on sale.

However, Goel failed in delivering the product. Later, he filed an FIR against two people for not delivering Freedom 251 units even after the company paid them in advance. Goel alleged that he paid nearly Rs 3.5 crore from Ringing Bells for delivering handsets, but the duo cheated him.

(With agency inputs)