Orissa High Court Orders Sale Of Bulk Carrier Over Drug Seizure & Unpaid Dues

The Orissa High Court ordered the sale of the Panama-flagged bulk carrier MV Debi on August 21, 2024, after it failed to settle dues of ₹8 crores.

The bulk carrier involved in a high-profile narcotics bust last year will be auctioned under Section 11(3) of the Admiralty Act, 2017, and Admiralty Rules, 2020, according to an order by Justice V. Narasingh. The court ordered the ship be sold because the owner abandoned it after its “arrest.”

The court has chosen Adoina Offshore Consultants Private Limited as surveyors and valuers to determine the vessel’s value for scrapping and trading. The report needs to be filed by September 21, 2024.

The MV Debi arrived at Paradip Port, Odisha, on November 29, 2023, from Egypt through Gresik Port in Indonesia, with plans to carry steel plates to Denmark.

On December 1, 2023, customs officials seized 22.2 kilos of cocaine from the vessel, estimated at ₹220 crore. The seizure led to an ongoing investigation of 21 crew members, including the ship’s captain, Vu Kang Dinh, under the Narcotic Drugs and Psychotropic Substances Act.

The vessel was “arrested” in February 2024 when Paradip International Cargo Terminal, a subsidiary of the JM Baxi Group, filed an admiralty suit to recover dues of ₹7.95 crore. The charges include berth leasing, penalties, and legal fees.

Paradip International Cargo Terminal, operating a multipurpose terminal 10 kilometres from Paradip Port since 2016, has been unable to retrieve the dues despite repeated invoicing and reminders given to the ship’s owners in Vietnam.

Since the cocaine seizure, the vessel has remained docked at the cargo facility, occupying valuable space.

In its submission to the High Court, JM Baxi Group highlighted the importance of selling the vessel as soon as possible, stating that any delay might risk its seaworthiness and market value.

Reference: TOI, Hindustan Times

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