There's something wrong there. I never followed the story about MH370 but
if it was a few hundred miles away from land then it would be lost from the screen to due to the transponder being off and not being received by satelite but that has nothing to do with RADAR.
You can see all manner of things without transponders using ground-based aviation RADAR...birds, people, quadcopters, gyrocopters etc. The techs in the runway caravan use the RADAR to tell when to put the kettle on - as they see the return from anyone walking across the aifield towards them