In a significant legal development linked to one of the worst maritime pollution incidents off the Kerala coast, the owners of the cargo ship MSC ELSA III, which sank in May 2025, have deposited a security of ₹1,227.62 crore in the Kerala High Court. The deposit facilitated the release of the vessel’s sister ship, MSC Akiteta II, which was previously under conditional arrest.
According to the legal counsel representing the ship owners, the security amount was deposited in court during the second week of December 2025, and the MSC Akiteta II was subsequently released by the end of the month.
Earlier, on December 4, 2025, the High Court had permitted the ship owner — Mediterranean Shipping Company (MSC) — to furnish a bank guarantee of ₹1,227.62 crore through Standard Chartered Bank, modifying a prior order that named Kotak Mahindra Bank.
This followed an order dated July 7, 2025, when the High Court conditionally arrested the MSC Akiteta II and directed MSC to deposit ₹9,531 crore as security. However, the court later revised and reduced this amount to ₹1,227.62 crore. Importantly, the bench clarified that the Kerala government would be free to seek an enhancement of the security at a later stage upon furnishing further supporting materials.
The conditional arrest and security direction came in response to a petition by the Kerala government seeking ₹9,531 crore in damages following the sinking of MSC ELSA III. The state’s claim includes:
- ₹8,626.12 crore as compensation for environmental damage to the coastline and marine ecosystem
- ₹378.48 crore as cost incurred for containment and mitigation efforts
- ₹526.51 crore for economic losses suffered by local fishermen
The MSC ELSA III sank off the Kerala coast on May 25, 2025, carrying 643 cargo containers. The vessel reportedly leaked oil and other hazardous cargo into the Arabian Sea, leading to widespread pollution of the marine environment. According to the Kerala Environment Department, the incident significantly damaged coastal ecology and directly affected the livelihoods of thousands of fishermen across the region.
The state approached the High Court seeking compensation and urgent environmental relief, marking one of the largest maritime pollution compensation claims in India’s legal history.
