MSC Elsa III Owners Deposit INR 1,227 Crore In Kerala High Court; Sister Vessel Released

MSC Elsa 3 — Image Credits: Indian Coast Guard/X

The owners of the container ship MSC Elsa III, which sank off the Kerala coast in May 2025 and caused serious pollution, have deposited a security amount of ₹1,227.62 crore in the Kerala High Court. This led to the release of the vessel’s sister ship, MSC Akiteta II.

A lawyer representing the shipowners said the amount was submitted as a bank guarantee in the second week of December last year, and the sister vessel was released by the end of the same month.

MSC Akiteta II had been detained near Vizhinjam port following a court order linked to the sinking of MSC Elsa III.

On December 4, 2025, the Kerala High Court allowed the owners to provide the bank guarantee through Standard Chartered Bank, instead of Kotak Mahindra Bank Ltd, which had been mentioned in an earlier order. The guarantee was later deposited in court.

Earlier, on July 7, the High Court had ordered the conditional arrest of MSC Akiteta II until its owner, Mediterranean Shipping Company (MSC), deposited ₹9,531 crore as security.

The court later reduced the amount to ₹1,227.62 crore, while stating that the Kerala government could seek an increase in the security amount later if additional evidence is produced.

The case was filed by the Kerala government, which has claimed ₹9,531 crore in damages following the sinking of MSC Elsa III and the environmental pollution caused by the incident.

The claim includes ₹8,626.12 crore for damage to the marine environment and coastline, ₹378.48 crore for measures taken to prevent, control or remove pollution, and ₹526.51 crore for economic losses suffered by fishermen.

The matter related to compensation has been listed for further hearing on February 13 before a Bench led by Justice M.A. Abdul Hakhim.

MSC Elsa III capsized and sank off the Kerala coast on May 25, 2025. Authorities have alleged that oil and cargo were released into the sea, causing damage to the marine environment, affecting the coastline, and disrupting the livelihoods of thousands of fishermen.

The Kerala Environment Department, which brought the case, has stated that the sunken vessel was carrying 643 cargo containers and that the damage caused by the incident was significant.

The High Court has also recorded that the discharge of oil into the sea was established and posed a serious risk of environmental pollution.

References: Hindustan Times, The Hindu

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