Kerala Court Orders Arrest of MSC Ship Over Rs. 9,531 Cr Compensation Claim

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Thiruvananthapuram, July 8 — In a landmark ruling, the Kerala High Court has ordered the conditional arrest of MSC Akiteta II, a Liberian-flagged container ship currently anchored at Vizhinjam Port. The arrest follows an admiralty suit filed by the Kerala government, seeking Rs. 9,531 crore in compensation for environmental and economic damage caused by the sinking of MSC Elsa III off the Kerala coast in May.

The court found merit in the state’s claims, which included the loss of over 600 containers, many of which carried hazardous materials such as diesel and plastic pellets. The government’s claim comprises Rs. 8,626.12 crore for environmental damage, Rs. 378.48 crore for remediation work, and Rs. 526.51 crore for economic losses to local communities.

The Kerala government cited provisions under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, as well as the Merchant Shipping Act and the Environment Protection Act. The High Court ruled that the MSC Akiteta II would remain under arrest unless the ship’s operator, Mediterranean Shipping Company, furnished the required compensation or security deposit. This case sets a strong precedent for enforcing maritime accountability in environmental damage cases within Indian territorial waters.

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