Kerala High Court Orders Conditional Arrest of Cargo Ship in ₹9,531 Crore Environmental Damage Case

In a significant maritime and environmental case, the Kerala High Court on Monday ordered the conditional arrest of a cargo vessel anchored at Vizhinjam Port in connection with a massive ₹9,531 crore compensation claim filed by the State of Kerala.

The vessel in question, MSC AKITETA II (IMO 9220847), was detained following allegations that a sister ship — MSC ELSA III (IMO 9123221) — managed by the same company, caused extensive ecological damage when it capsized and sank off the Kerala coast on May 25.

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According to the Kerala Environment Department, the sunken MSC ELSA III was carrying 643 cargo containers, and its sinking led to widespread pollution, severely impacting the marine ecosystem, damaging the coastline, and affecting the livelihoods of thousands of fishermen.

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In its petition, the state sought ₹9,531 crore in damages, encompassing environmental restoration, clean-up operations, and compensation to local fishing communities.

During the hearing, Justice M.A. Abdul Hakhim noted that documentary evidence established a link between the two ships, allowing the court to treat them as “sister vessels” under maritime law. This legal classification permitted the conditional arrest of MSC AKITETA II to secure the state’s compensation claim arising from the MSC ELSA III disaster.

“The 1st respondent vessel by name ‘MSC AKITETA II’… is ordered to be arrested until ₹9,531 crore is deposited… or until security for the said amount is furnished to the satisfaction of this Court,” the order stated.

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However, the court allowed the vessel to continue cargo operations during the arrest period, provided it remains under court jurisdiction.

The matter is scheduled to come up for further hearing on July 10.

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