After the procurement of the Sealands and the Firefly aircraft, a need was felt by the navy to start its own ab-initio Pilot Training, which till that point of time was being done by the IAF. Towards this goal, the Navy procured three HT-2 primary trainers from HAL, these (IN 121-123) being ferried to the FRU at Cochin on 7th October 1956 by Lt Cdr D D Law and Lt R A J Anderson. 

The FRU was re-commissioned as Indian Naval Air Squadron (INAS) 550 on 17 June 1959.  The Squadron then had ten Sealands, ten Fireflies and the three HT-2s on its strength. 

The HT-2s served till 1964 when they were 'phased out'. Since the HT-2 had a long career of another two decades in the Indian Air Force, it is assumed that the three aircraft were returned to IAF service.