The legal saga surrounding the sunken MSC Elsa 3 off Kerala’s coast continues to unfold, with the Kerala High Court recently directing the Mediterranean Shipping Company (MSC) to provide a security deposit of ₹1,227.62 crore. However, legal experts caution that this sum should not be mistaken for compensation to the state government for the extensive damages inflicted by the shipwreck.
The complex case began when a sister vessel of the MSC Elsa 3 was conditionally arrested at Vizhinjam International Seaport on July 7, 2025. At that time, the court had instructed MSC to deposit a staggering ₹9,531 crore in response to Kerala’s admiralty suit. To date, MSC has neither remitted this initial amount nor furnished security for it, leaving the arrested ship in Vizhinjam Port. The latest court order provides MSC with a path to release its detained vessel by depositing the revised ₹1,227.62 crore or offering satisfactory security for that sum.
According to maritime law expert V.J. Mathew, it’s highly improbable that MSC will pay the revised security amount for a vessel reportedly worth only about ₹30 crore. The shipping giant has consistently argued that its liability should be capped at just ₹132 crore, starkly contrasting with Kerala’s demand for ₹9,531 crore to cover ecological devastation, widespread marine and coastal pollution, and significant livelihood losses. Mathew predicts a drawn-out battle, anticipating that MSC will likely challenge the High Court’s order in a division bench and potentially escalate the matter to the apex court. He also pointed out that Kerala has yet to present compelling evidence to substantiate the long-term environmental impact and overall ecological harm caused by the shipwreck.
Fishermen Demand Justice
Meanwhile, fishermen across Kerala have been vocal in their protests, even demonstrating outside the State Secretariat. They are urging the government to present robust evidence in court to bolster its compensation claims. Numerous pleas have been filed by fishermen and boat owners who have suffered immense losses, with their boats and nets damaged after colliding with the submerged wreckage. In response to these pleas, at least 18 vessels have been conditionally arrested.
Amruta S.N., a climate campaigner at Greenpeace India, emphasized the broader implications of the case. "The court order is just the beginning," she stated. "The primary focus must be on ensuring that every affected family receives compensation without any exclusions. True justice goes beyond monetary payment; it’s about acknowledging their profound loss, restoring their dignity, and holding polluters accountable not only through financial penalties but also through lasting policy reforms designed to safeguard both people and our oceans."