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Synopsis: Hindustan Aeronautics Limited (HAL) has filed a criminal complaint against a Hyderabad-based supplier over the alleged submission of 199 forged test reports linked to components supplied for the Tejas Mk-1A fighter aircraft programme. The supplier has already been debarred from doing business with HAL until March 2027.

Shares of Hindustan Aeronautics Limited (HAL) are likely to remain in focus after the defence PSU initiated criminal proceedings against a Hyderabad-based aerospace component supplier over allegations of forged quality certification documents related to the Tejas Mk-1A fighter aircraft programme.

According to reports, HAL has lodged a complaint against M. Sivarama Prasad, Chief Executive Officer of Tec Aero Devices, alleging that the company submitted forged test reports while supplying aerospace components for India’s indigenous Light Combat Aircraft (LCA) Tejas Mk-1A programme.

The complaint was reportedly filed by Ranu Gupta, Deputy General Manager, Aircraft Division, HAL, following an internal investigation into the authenticity of quality certification documents submitted by the supplier.

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As per the complaint, HAL had placed 18 purchase orders with Tec Aero Devices between March 2022 and September 2023 for the supply of various components required for the Tejas Mk-1A programme. Under procurement norms, suppliers are required to furnish material testing certificates, inspection reports, and other quality assurance documents before supplied parts can be accepted.

HAL alleged that the supplier submitted 199 test reports covering 172 components supplied for the programme. During routine quality verification processes, the company sought original documents relating to various technical tests, including tensile strength, hardness, shear testing, non-destructive testing (NDT), microstructure analysis, break load tests, and salt spray testing.

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However, according to HAL, the supplier failed to provide the original supporting reports when requested. The matter intensified after Tec Aero Devices reportedly stated that some of the test reports had been issued by Hyderabad-based Axis Inspection Solutions. To verify the documents, HAL conducted an audit of the testing agency in November 2023.

During the audit, Axis Inspection Solutions allegedly informed HAL that it had not issued any of the 199 reports submitted by the supplier. The agency further stated that its name and signatures appeared to have been misused in the preparation of the documents.

Following the findings, HAL concluded that the quality certification reports submitted between February and September 2023 were not genuine. The company subsequently issued a show-cause notice to the supplier and later imposed a three-year debarment, prohibiting Tec Aero Devices from conducting business with HAL until March 2027.

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After completing internal reviews and obtaining legal opinions, HAL decided to pursue criminal action against both the company and its CEO under provisions related to cheating and forgery. Importantly, HAL clarified that no payments were made to the supplier for the disputed component supplies, limiting potential financial exposure arising from the incident.

The development highlights the stringent quality assurance standards followed in India’s defence manufacturing ecosystem, particularly for critical aerospace programmes such as the Tejas Mk-1A fighter aircraft. Defence platforms require extensive testing and certification to ensure reliability, safety, and operational readiness.

Meanwhile, the CEO of Tec Aero Devices reportedly stated that he was unaware of the police complaint but acknowledged the debarment imposed by HAL. He also indicated that the company had taken corrective measures to strengthen its quality control systems and requested HAL to inspect its facilities.

Incorporated in 1940, Hindustan Aeronautics Limited (HAL) is India’s premier aerospace and defence manufacturer. The company is engaged in the design, development, manufacture, repair, overhaul, and upgrade of aircraft, helicopters, engines, avionics, and defence systems for the Indian armed forces and international customers.

The latest development underscores HAL’s focus on maintaining strict quality control standards across its supply chain as it executes key defence programmes, including the Tejas Mk-1A, which remains one of India’s most important indigenous military aviation projects.

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  • Finance professional currently pursuing an MBA in Finance, with a background in Computer Applications and hands-on experience in equity research and financial analysis. Skilled in financial modelling, valuation techniques and data-driven investment analysis, with practical exposure to financial reporting and accounting operations. Actively engaged in analysing company performance, market trends and investment opportunities, with a strong interest in wealth management and strategic decision-making in capital markets.

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