New York: British arms dealer of Indian origin Hemant Lakhani has pleaded not guilty to charges that he tried to sell missiles to terrorists to shoot down American airliners and plotted to procure a "dirty bomb".

Lakhani, 69, being held without bail since his arrest in August last year, did not speak during the 10-minute hearing and the "not guilty" plea was entered on his behalf by his lawyer Henry Klingeman, as his wife Kusum watched from the public gallery.

The US (United States) District Court Judge in Newark in the neighbouring state of New Jersey fixed April 26 for pre-trial oral arguments in the case.

Lakhani was arrested from a hotel near Newark International Airport following a sting operation by FBI (Federal Bureau of Investigation) during which its agents allegedly posed as terrorists seeking missiles to shoot down commercial airliners.

He is charged with procuring a missile from a Russian, who he believed was a disgruntled officer but in fact a Government agent. The arrest came after the missile, which was a dud, had been imported into the US.

He is also allegedly to have said that the best way to terrorise Americans would be to shoot down 10 to 15 commercial airliners simultaneously.