Kerala HC cuts security amount to ₹1,227.62cr for release of MSC vessel

KOCHI : The Kerala High Court on Thursday lowered the security deposit required from the owners of MSC ELSA III, the vessel that sank off the state’s coast, causing extensive pollution, for the release of its sister ship, MSC AKITETA II. The amount has been reduced to ₹1,227.62 crore.

Earlier, on July 7, the court had directed that MSC AKITETA be detained until its owner, the Mediterranean Shipping Company (MSC), furnished ₹9,531 crore as security. On Thursday, Justice M A Abdul Hakhim revised this figure to ₹1,227.62 crore.

The court clarified that the state government is entitled to seek a higher security amount in future, “on obtaining further materials” to justify such an increase. It also noted that the government “has every right to seek the arrest of any other sister vessel of the sunken vessel in this suit itself to demand additional security on furnishing supporting materials for the increase.” The ruling came on a petition by the Kerala government, which has demanded damages of ₹9,531 crore following the sinking of MSC ELSA III and the severe ecological damage that ensued.

The government’s claim comprises three components — ₹8,626.12 crore as compensation for harm caused to the marine ecosystem, coastline and related state interests, ₹378.48 crore towards expenses incurred to prevent, mitigate or remove such damage, and ₹526.51 crore for economic losses suffered by fishermen.

MSC ELSA III capsized and went under off the Kerala coast on May 25, allegedly leaking oil and cargo that devastated marine life, damaged the shoreline, and disrupted the livelihoods of thousands of fishermen. According to the state’s Environment Department, which filed the suit, the vessel was carrying 643 cargo containers, and the destruction it caused was immense.