The Indian government on Monday reacted to a New York Times report that claimed Hindustan Aeronautics Limited (HAL) a government-owned aerospace and defense company sold sensitive technology, with potential military use, to a blacklisted agency supplying Russia with weapons.

Responding to the article, a ministry of external Affairs (MEA) source told ANI that the report is "factually incorrect and misleading" and accused it of trying to "frame issues and distort facts to suit a political narrative".

"The Indian entity (Hindustan Aeronautics Limited - HAL) mentioned in the report has scrupulously followed all its international obligations regarding strategic trade controls and end-user commitments. India’s robust legal and regulatory framework on strategic trade continues to guide overseas commercial ventures by its companies. We expect reputed media outlets to undertake basic due diligence before publishing such reports, which was obviously overlooked in this case," ANI quoted an MEA source.

Hindustan Aeronautics Limited (HAL) is a Navratna DPSU headquartered in Bengaluru, Karnataka. The company is a designer, developer, and manufacturer of aircraft, helicopters, engines, and avionics, serving both military and civil markets.

The New York Times published an article on March 28, in which it said a British aerospace firm, HR Smith Group, allegedly shipped restricted technology to HAL between 2023 and 2024. The report suggested that HAL later transferred similar equipment to Russia’s state-owned arms agency, Rosoboronexport.

But the British and American governments banned the sale of this equipment, known as “common high priority items,” to Russia after Moscow’s full-scale invasion of Ukraine in February 2022.

India & Russia have a robust and historical defence relationship that goes back to the Cold War days.

The Telegraph online spoke with a security analyst who said the deal shouldn’t come as a surprise.

“India manufactures a number of defence articles under license and some jointly like in the case of the BrahMos missile. It should not come as a surprise to anyone that the defence trade relationship flows both ways especially as Russia remains sanctioned and cut off from many critical technologies and components,” said the security analyst who didn’t wish to be identified.

The report cited customs records indicating that HAL received 118 shipments of restricted technology worth nearly $2 million from HR Smith’s subsidiary, Techtest, in 2023 and 2024.

HAL made at least 13 shipments of similar components to Rosoboronexport, with payments totalling over $14 million. These components were described as dual-use technology, which British and American authorities have flagged as critical to Russia’s military operations in Ukraine.

Dual-use goods are items that have both civilian and military applications.

According to the report, on September 2, 2023, for example, Techtest sold Hindustan Aeronautics two shipments of restricted equipment, including location transmitters and remote controllers. Nineteen days later, the Indian company sold parts to Russia with matching identification codes.

Techtest sold another shipment of restricted technology to India on February 4, 2024. Eighteen days later, Hindustan Aeronautics sold equipment with matching codes to a buyer for Rosoboronexport, customs data shows, reports NYT.

"The records do not prove that H.R. Smith's products ended up in Russia. But they show that, in some instances, the Indian company received equipment from H.R. Smith and, within days, sent parts to Russia with the same identifying product codes," the report said.

The H. R. Smith Group defended its sales, stating that all transactions were lawful and that the equipment was intended for an Indian search-and-rescue network. The company’s lawyer was quoted saying the parts “support lifesaving operations” and are “not designed for military use," NYT report said.