These days most of the smart phones are having the facilities to record all the calls automatically and this fact is known to the authorities concerned too.
However if this act of recording the conversation by the receiver is termed to be illegal then the automatic provision installed in the smart phones is also considered as an illegal act and no phones can be sold with such facility.
Moreover the recording of conversation by the parties to the call is not considered as an illegal act, however if the receiver is trying to misuse the recording for any other illegal purpose then he or she may be held liable for criminal prosecution for extortion charges or for the offences of threatening the other person and other related offences.