October30 , 2026

    MSC Refutes Kerala Govt’s Rs 9,531 Cr Claim Over ELSA 3 Shipwreck

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    Mediterranean Shipping Company (MSC) has submitted before the High Court that the Kerala state government has no legal authority to seek maritime claims over the capsizing of the cargo vessel ELSA 3, as the incident occurred approximately 14.5 nautical miles off the coast—beyond India’s territorial waters and the state’s maritime jurisdiction. The submission came in a counter-affidavit responding to an admiralty suit filed by the state, which is seeking ₹9,531 crore in compensation for alleged environmental and economic damages following the shipwreck on May 25.

    MSC argued that the state’s claim is speculative, lacks factual basis, and contradicts previous affidavits submitted by both the central and state governments. It maintained that the protection of the marine environment in such offshore zones falls solely under the purview of the central government. According to MSC, there was no substantial environmental damage caused by the incident. The oil sheen observed after the capsizing was minimal and likely composed of diesel or mechanical oil. The company cited findings from the state pollution control board, which reportedly found no significant deviation in seawater quality. It also pointed out that the central government did not impose any fishing ban, undermining the state’s claim of fisheries-related losses.

    The company further noted that the fishing ban enforced by the state was arbitrary and coincided with the seasonal monsoon fishing ban already in effect. Regarding the cargo, MSC clarified that only 13 containers on board carried hazardous goods, and all of them are presumed to have sunk to a depth of 54 metres with no evidence of leakage or environmental contamination. The affidavit also contested the High Court’s arrest of the vessel MSC MV Akiteta II, arguing that it is not owned by MSC and has no connection to ELSA 3. It stated that Akiteta II is owned by M/s Nairne Oceanway Ltd, while ELSA 3 is registered to ELSA 3 Maritime Inc. MSC emphasized that it is not the registered owner of either vessel, and any liability must rest solely with the respective registered owners.