The Kerala High Court on Thursday modified its earlier order directing the conditional arrest of cargo vessel MSC AKITETA II and significantly reduced the security amount to be furnished by its owner, Mediterranean Shipping Company (MSC), from ₹9,531 crore to ₹1,227.62 crore.
The matter relates to the sinking of MSC ELSA III off the Kerala coast on May 25, which allegedly released oil and cargo into the sea, causing extensive environmental damage, coastline pollution, and economic losses to thousands of fishermen.
On July 7, the High Court had ordered the arrest of the sister ship MSC AKITETA II until MSC deposited ₹9,531 crore as security in connection with the damages claimed by the state government. The claim was filed under three heads:
- ₹8,626.12 crore for compensation towards environmental and coastal damage,
- ₹378.48 crore for preventive and remedial measures undertaken by the state, and
- ₹526.51 crore for economic loss suffered by the fishing community.
The Environment Department had argued that the sunken vessel carried 643 cargo containers and caused enormous pollution in marine waters, severely affecting the ecosystem and livelihoods.
Justice M.A. Abdul Hakhim, while modifying the earlier order, reduced the security amount but clarified that the state government is entitled to seek enhancement in future “on obtaining further materials” to substantiate such a demand.
The court also permitted the government to seek arrest of any other sister vessel of the sunken MSC ELSA III within the same suit if additional security becomes necessary.
The Kerala government had initially pressed for a security of ₹9,531 crore, reflecting the total claim amount. However, the court found the sum excessive at this stage, opting instead to fix a reduced interim amount of ₹1,227.62 crore, while keeping the door open for future enhancement.
