New Delhi: After distributing free internet data,  the chairman, managing director and largest shareholder of Reliance Industries Limited (RIL) Mukesh Ambani, announced to distribute free smartphones.

For having this Jio phone in your pocket, you have to deposit security money of Rs 1500.

"Let me introduce India ka Intelligent SmartPhone -- Presenting Jio Phone," he had said on Friday.

"The JioPhone will be available to all Indians for an effective price of Rs zero," Ambani told the company's 40th annual general meeting in Mumbai.

However, on social media, it is being claimed that via this move, Reliance has made a plan to fill its pocket.

A message circulating on social media is providing full detail about how it will be done.



According to it, nearly 20 crore people will buy this phone which will, in turn, provide Rs 30,000 crore to company (20 multiplied by 1500).

The phone has to be recharged with an amount of Rs 153. Which means when 20 crore people will recharge with Rs 153 for one year, Reliance will get Rs 36,720 crore.

According to the viral message, if every year, the company adds 10 per cent customers, on the completion of three-year company will have 24 crore customers.

These 24 crore customers will recharge every month with Rs 153. After 12 months company will get Rs 44,431 crore.

As per message, 20 crore people will give reliance Rs 30,000 crore. If Reliance takes 12 percent return, so in three years it will earn pure profit of Rs 10,800 crore.

In total, message says, company will earn Rs 85,231 crore. (44,431 from recharge+ 30,000 from phone+ 10,800 from return)

The fifth claim in the message says, by returning Rs 30,000 crore out of Rs 85,231 crore, to the customers (security money), Reliance will earn profit of Rs 55,231 crore!

All this math excludes company's profit from Rs 303 recharge.

ABP News Investigation:

When we started our investigation and contacted some sources in Reliance we found out some important facts. The company has to spend money on mobile phones, making these available to customers, their marketing.

Further, every week the aim is to sell 50 lakh Jio phones, but it will depend on market conditions.

The viral message has just simply assumed things and has done calculation on their basis which doesn't include the expenditures of the company.

Company sources say that these figures are simply baseless.

Our investigation found this viral message...false.