Earlier, the MSC argued that Kerala had no jurisdiction to pursue the case as the accident occurred beyond the state’s territorial waters and claimed the compensation demand was unrealistic.
Published Sep 25, 2025 | 6:07 PM ⚊ Updated Sep 25, 2025 | 6:07 PM
Liberia-flagged MSC ELSA-3 sank off the Kerala coast on 25 May.
Synopsis: The MSC Elsa-3, a Liberian-flagged cargo ship operating on the Tuticorin–Vizhinjam–Kochi–Mangalore route, capsized on 24 May about 38 nautical miles off the Kochi coast with 643 containers on board. Despite efforts to salvage the vessel, it sank completely, releasing oil, chemicals, and plastic debris into the sea, damaging the marine ecosystem.
The Kerala High Court has directed Mediterranean Shipping Company (MSC) to deposit ₹1,200.62 crore as compensation for the environmental and economic losses caused by the sinking of the cargo ship MSC Elsa-3 in the Arabian Sea.
Justice MA Abdul Hakeem passed the order in an admiralty suit filed by the state government, which had sought ₹19,531 crore, citing widespread oil spillage, chemical leakage, and livelihood loss of fishermen.
The court said the arrested vessel MSCAkitete-II will be released once the compensation is deposited.
The MSC Elsa-3, a Liberian-flagged cargo ship operating on the Tuticorin–Vizhinjam–Kochi–Mangalore route, capsized on 24 May about 38 nautical miles off the Kochi coast with 643 containers on board.
Despite efforts to salvage the vessel, it sank completely, releasing oil, chemicals, and plastic debris into the sea, damaging the marine ecosystem.
The vessel, operated by MSC Ship Management, was en route to Kochi when the crew alerted Indian authorities and sought urgent assistance.
Earlier, the MSC argued that Kerala had no jurisdiction to pursue the case as the accident occurred beyond the state’s territorial waters and claimed the compensation demand was unrealistic.
According to officials, the ship completely sank on the next day, 14.6 nautical miles from the Thottappally spillway. About 100 containers may have fallen into the sea, and the ship’s fuel oil has also leaked.
Its impact on marine ecosystems and livelihoods continues to unfold, particularly in Pulluvila — a densely populated fishing village with limited alternative employment options.
A new report by Greenpeace India and local fishing associations, released on 16 September, estimates that the average household here has been losing ₹25,000–₹35,000 every month since the disaster — a crippling blow for a community where more than 80 percent of families had no savings to cushion the shock.
The findings surfaced at a time when compensation claims were under intense scrutiny, with the Kerala government demanding ₹19,531 crore in damages even as the ship’s owners seek to limit their liability to a fraction of that amount, that is, only ₹132 crore.
(Edited by Sumavarsha, with inputs from Dileep V Kumar)
