Reliance Infocomm's dealers on Monday protested outside the offices of Reliance Infocomm at Lower Parel in Mumbai over the company's move to have its existing CDMA handset dealers shift to the Dhirubhai Ambani Entrepreneur Program.

But late in the evening, a senior Reliance Infocomm executive said the matter has been resolved, without giving details. The dealers went away convinced, the official said.

Earlier, Reliance had announced a scheme under which about 1,050 dealers paid around Rs 50,000 each. In return they were given a free handset and promised Rs 250 per handset sold.

Later the, company announced the Dhirubhai Ambani Entrepreneur Program under which anyone could sell the handsets after depositing just Rs 10,000.

However, the company would not pay any commission till at least 25 phones were sold. A commission of Rs 250 per phone (beginning from the first phone sold) would be paid after the sale of 25 phones. Further, Reliance suggested that the original dealers migrate to the DAEP scheme.

"This is totally unfair. Under the new scheme anyone can sell a handset," said Harsh Raj, an executive of Mahesh Telecom.

"Further they are asking us to pay Rs 13,000 to join the DAEP and making us buy three additional handsets. They are not giving us any choice about joining the DAEP scheme. What happens to our Rs 50,000 deposit," asked dealers outside the Reliance Infocomm office.

"We are not clear on whether the deposit will be refunded to us if we choose not to join the DAEP. I have just come out of a meeting with Reliance Infocomm executives," said Ramdas Pepale, proprietor of Rupali Marketing.

Reliance executives refuted the allegations. "This is nothing more than a misunderstanding brought about by a communication gap. First of all let us make it clear that a dealer wishing to opt out of the scheme will get his money back. Anyone who shifts to the DAEP scheme will get Rs 37,000 back," senior Reliance group executives said.

"The only reason for asking dealers to shift to this scheme is because we want to present a single face of Reliance Infocomm for the customer," Reliance group executives added.

Further, they contended that a higher incentive structure had been worked out for selling more than 25 handsets. The only losers would be those who did not sell 25 handsets.

Also, those who shifted to the DAEP would be given three handsets free which is not available to those who join the Dhirubhai scheme directly.

Reliance Infocomm has entered into an agreement with leading retail chains across the country, including Big Bazar, Shoppers' Stop, Pantaloon, Cross Roads and Gabanna under the Dhirubhai Ambani Entrepreneur Program for selling its WiLL mobile phone services.