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 โน9,531 crore to โน1,227.62 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 โน9,531 crore as security in connection with the damages claimed by the state government. The claim was filed under three heads:
- โน8,626.12 crore for compensation towards environmental and coastal damage,
- โน378.48 crore for preventive and remedial measures undertaken by the state, and
- โน526.51 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 โon obtaining further materialsโ 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 โน9,531 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 โน1,227.62 crore, while keeping the door open for future enhancement.
