MSC Elsa III Owners Deposit Rs 1227 Cr in HC for Release of Sister Vessel

Kochi: The owners of the cargo vessel MSC ELSA III, which sank off the Kerala coast and caused large-scale environmental damage, have deposited Rs 1,227.62 crore as security before the Kerala High Court for the release of its sister ship, MSC Akiteta II.

The amount was deposited in the second week of December last year, and the vessel was released by the end of that month, a lawyer representing the vessel owners said.

Earlier, on December 4, 2025, the High Court had permitted the owners to furnish the bank guarantee through Standard Chartered Bank, instead of Kotak Mahindra Bank as directed in an earlier order. The guarantee was subsequently submitted to the court, the lawyer said.

The case relates to the sinking of MSC ELSA III, owned by Mediterranean Shipping Company (MSC). On July 7, the High Court had ordered the conditional arrest of MSC Akiteta II, directing the company to deposit Rs 9,531 crore as security. The court later reduced the amount to Rs 1,227.62 crore, while making it clear that the Kerala government could seek an enhancement if further materials were produced to justify a higher claim.

The court’s order followed a plea filed by the Kerala government seeking compensation of Rs 9,531 crore for the damage caused by the sinking of MSC ELSA III. The claim included Rs 8,626.12 crore towards environmental and coastline damage, Rs 378.48 crore for measures taken to prevent and mitigate pollution, and Rs 526.51 crore towards economic losses suffered by fishermen.

MSC ELSA III capsized and sank off the Kerala coast on May 25 last year, allegedly releasing oil and cargo into the sea. The incident caused extensive damage to the marine ecosystem, affected the coastline, and severely impacted the livelihood of thousands of fishermen.

The state Environment Department, which initiated the legal action, informed the court that the sunken vessel was carrying 643 cargo containers and that the damage caused by the incident was enormous.