India's Ministry of External Affairs (MEA) has strongly rejected a New York Times report alleging that Hindustan Aeronautics Limited (HAL) transferred sensitive technology to a Russian arms supplier under international sanctions.
The MEA labeled the report as "factually incorrect and misleading," accusing it of attempting to manipulate facts to push a specific political narrative.
According to the MEA, HAL has adhered strictly to all international regulations concerning strategic trade controls and end-user agreements. The ministry emphasised that India's legal and regulatory frameworks governing strategic trade are robust and ensure compliance by companies engaging in overseas transactions.
It also urged credible media organisations to conduct proper due diligence before publishing reports, a step the MEA claimed was ignored by the New York Times.
The NYT article, titled 'Major Donor to Reform U.K. Party Sold Parts Used In Weapons to Russian Supplier', published on March 28, suggested that HAL received equipment from British aerospace manufacturer HR Smith Group and allegedly sent the same parts to Russia shortly afterward. The report claimed HAL supplied equipment to Rosoboroneexport, a Russian state-owned arms agency blacklisted by the United States and the United Kingdom, throughout 2023 and 2024.
Citing shipping records, the New York Times claimed that HR Smith made 118 shipments of restricted technology worth $2 million to HAL over this period.
Meanwhile, HAL allegedly made 13 shipments of similar parts to Rosoboroneexport, valued at over $14 million. The Russian agency is reportedly one of HAL’s significant trading partners.
Nick Watson, a lawyer representing HR Smith, defended the transactions, stating the sales were legal and intended for India's search-and-rescue operations, not military use. He reiterated that the equipment in question was designed to support life-saving missions.
However, legal experts consulted by the NYT indicated that HR Smith might have breached international sanctions by failing to adequately monitor the end-use of its products. The British government had reportedly issued a 'red alert' in December 2023, warning companies about the potential redirection of sensitive technology to Russia through intermediaries.
Despite the allegations, HAL has not yet responded to the controversy.