The deposit of a ₹1,227 crore bank guarantee by the owners of the container vessel MSC ELSA 3 before the Kerala High Court to secure the release of its sister vessel has marked a significant step in enforcing accountability in India’s maritime and environmental governance framework, Greenpeace India said on Saturday.
In a statement, the environmental organisation said the move sent a clear message that even global shipping majors such as the Mediterranean Shipping Company (MSC) are not beyond the reach of Indian law. However, it cautioned that financial security alone cannot remedy the extensive ecological damage or the prolonged livelihood losses suffered by coastal communities.
“This deposit is an admission of corporate negligence and a first step towards compensating communities whose livelihoods were disrupted for months. But money sitting in a court registry does not heal a damaged marine ecosystem or feed fishing families,” said Amruta S.N., campaigner at Greenpeace India.
Severe livelihood losses documented
Citing findings from its Wrecked Futures report, Greenpeace India highlighted the scale of economic distress faced by fishing communities following the sinking of the vessel. In one surveyed fishing village alone, 95.5% of households reported income losses, underscoring the widespread impact on small-scale fishers along the Kerala coast.
The organisation said MSC must undertake due diligence to ensure full and fair compensation to affected fishing communities, beyond interim deposits. It also called for a transparent and accountable mechanism to ensure timely disbursal of compensation, urging the State government to establish a decentralised and accessible claims process so that no fisher is excluded from justice.
Precedent-setting case
Greenpeace India said the court order sets an important precedent in addressing environmental and economic liabilities arising from maritime accidents, ensuring that affected States and vulnerable communities are not sidelined. However, it stressed that the ₹1,227 crore deposit should not be treated as the ceiling of MSC’s liability, particularly when the Kerala government’s admiralty suit seeks ₹9,531 crore in comprehensive damages covering environmental harm, response costs, and economic losses.
Need for long-term remediation
The organisation said the focus must now shift towards a full assessment of both short-term and long-term impacts, ranging from marine ecosystem degradation to sustained economic disruption for coastal families. It called for rigorous monitoring, enforceable restoration commitments, transparent impact assessments, and long-term remediation plans to ensure meaningful restitution for both people and ecosystems.
“Without a clear and accessible claims mechanism, financial deposits risk remaining symbolic rather than delivering justice on the ground,” Greenpeace India said.
The MSC ELSA 3 container vessel sank off the Kerala coast on May 25, 2025, releasing a large quantity of cargo, including plastic pellets (nurdles) and hazardous calcium carbide, leading to significant marine pollution, ecological damage, and severe financial hardship for local fishing communities.
