The freedom of three Indians and four other hostages was secured after payment of $1 million, the Kuwaiti company employing them said on Wednesday night and denied that it had halted operations in Iraq, as demanded by the abductors.

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"The payment was made in four phases," KGL spokesperson Rana Abu-Zaineh said in Kuwait soon after her company's drivers were set free by the Iraqi militant group 'Islamic Secret Army-Holders of Black Banners'.

She said that the Indian government, which was kept informed about the developments in the hostage crisis on a regular basis, was aware of the payment of ransom.

The statement came as the three Indians -- Antaryami, Tilak Raj and Sukhdeo Singh -- arrived in Kuwait.

Indian Ambassador to Kuwait Swashpawan Singh received them.

They are expected to be flown home on Thursday.