The Kerala government has approached the High Court with an admiralty suit, seeking ₹9,531 crore in compensation for the environmental and economic damages caused by the sinking of the container vessel MSC Elsa-3 near the Alappuzha coast on May 25.
The suit targets MSC Akiteta-2, a ship currently docked at the Vizhinjam port and reportedly operated by the same company, MSC Shipping. According to the court order, MSC Akiteta-2 has been placed under interim arrest until July 10, serving as security for the substantial compensation claim.
Advocate General K. Gopalakrishna Kurup, assisted by government pleader Parvathy Kottol, filed the plea before Justice M.A. Abdul Hakim. The state’s legal team highlighted the significant ecological destruction, pollution, and the resulting financial setback to coastal communities. The government invoked provisions under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 to support its claim.
The ill-fated MSC Elsa-3 was transporting over 643 containers, a number of which contained toxic materials and plastic pellets known as nurdles. The spill from the wreck has led to oil slick and drifting debris, posing a grave hazard to marine life, fisheries, and public health. Cleanup operations, involving more than 600 government staff and 300 volunteers, have so far collected approximately 60 tonnes of nurdles, and at least 61 containers have washed up along the coast as of June 30.
As per the suit, the incident has triggered a collapse in the local seafood market due to contamination fears. Additionally, the discovery of six dead marine animals including dolphins and a whale along the coast has sparked concerns about toxic exposure. The government asserts that these deaths are “suspected to have died due to exposure to microplastics and toxic substances from the vessel.”
The total claim includes ₹8,626.12 crore for ecological and pollution damage, ₹378.48 crore to restore the environment, and ₹526.51 crore to compensate affected fishers for their economic losses.
Arguing that both the sunken MSC Elsa-3 and the detained MSC Akiteta-2 are operated under shared management despite different registration companies, the government accused the parent firm of using “a pattern of deliberate corporate structuring to defeat potential claims” and described it as “a fraudulent device to frustrate maritime claim enforcement.”
In a parallel order, the Kerala High Court granted permission for the seizure of MSC Akiteta II anchored at Vizhinjam, in connection with the compensation demand.
The court observed that although MSC Akiteta II is officially owned by Mandjet Oceanway Ltd, the state’s argument that the operational control lies with MSC was persuasive. It thus issued a conditional order for the arrest of MSC Akiteta II until the amount is deposited.
While issuing the ruling, Justice M.A. Abdul Hakim instructed Adani Vizhinjam Port authorities to execute the arrest, including all onboard equipment like engines and bunkers. However, the court emphasized that its order would not affect the loading and unloading of the cargo of the vessel.
The MSC Elsa-3, which flew a Liberian flag, was carrying hazardous materials including calcium carbide, the release of which raised environmental alarms. To mitigate further risks, authorities implemented a 20-nautical-mile fishing ban around the sunken vessel.
According to the government, cleanup efforts have already removed “14,302 metric tons of waste discharged from the vessel.” Interim relief has also been sanctioned for the impacted fisherfolk and their families across the coastal districts of Thiruvananthapuram, Kollam, Alappuzha, and Ernakulam.
