The owners of MSC ELSA III, which sank off the Kerala coast and caused severe pollution, have deposited in the Kerala High Court a security amount of ₹1,227.62 crore for the release of its sister vessel, 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.
The Kerala High Court had, on December 4, 2025, allowed the company to furnish a bank guarantee for ₹1227.62 crore by the Standard Chartered Bank instead of Kotak Mahindra Bank Ltd as mentioned in an earlier order.
Subsequently, the bank guarantee was deposited in court, the lawyer said.
The High Court on July 7 had ordered the conditional arrest of MSC Akiteta II till its owner – Mediterranean Shipping Company (MSC) – deposits ₹9,531 crore as security. But the amount was later reduced by the court to ₹1227.62 crore.
The High Court had said that the state government can later seek an increase in the security amount “on obtaining further materials” to support such a hike.
The order had come on a plea by the Kerala government claiming damages of ₹9,531 crore in connection with the sinking of MSC ELSA III and the resultant environmental pollution.
The state government’s claim was under three heads – ₹8,626.12 crore towards compensation for damage caused to the environment, coastline or related interests of the state, ₹378.48 crore as cost of the steps taken to prevent, minimise or remove such damage and ₹526.51 crore towards economic loss caused to fishermen pursuant to the sinking of the vessel.
The MSC ELSA III had capsized and sunk off the Kerala coast on May 25 last year, allegedly releasing oil and cargo that harmed the marine environment, damaged the coastline and affected the livelihood of thousands of fishermen.
Kerala’s Environment Department, which brought the case, had said that the sunken vessel had 643 cargo containers and that the damage caused was enormous.