
In a landmark legal move, the Kerala government has filed an admiralty suit before the Kerala High Court seeking the seizure of the vessel MSC Akiteta II, currently docked at Vizhinjam Seaport, to secure a maritime claim of ₹9,531 crore ($1.1 billion) for environmental and economic damages resulting from the sinking of another container vessel, MSC ELSA 3, off the state’s coast in May.
Justice M A Abdul Hakhim, hearing the urgent plea on Monday evening, ordered the interim arrest, seizure and detention of MSC Akiteta II until the ship’s owner, the Mediterranean Shipping Company (MSC), deposits the full claim amount with the court. The case will next be heard on July 10.
Legal experts say the high-stakes lawsuit could set a precedent for environmental accountability in India’s maritime sector, especially in an era of expanding seaborne trade through Indian ports.
This is the first instance in Kerala’s history that a maritime claim of such scale has been brought before the courts. No court fee was payable as the petitioner is the State.
The case stems from the May 25 sinking of the MSC ELSA 3, a Liberian-flagged container vessel, which capsized 13 nautical miles off the Thottappally spillway in Alappuzha while en route from Vizhinjam to Kochi. The vessel, which leaked fuel and discharged cargo — including hazardous material — into the Arabian Sea, allegedly caused extensive damage to Kerala’s marine ecosystem, fisheries sector, and public health.
The state government's petition, filed by Seeram Sambasiva Rao, Special Secretary of the Environment Department and designated principal impact assessment officer, cites scientific and departmental assessments estimating the damage at ₹9,531 crore. The break-up includes ₹8,626.12 crore for pollution-related damage, ₹378.48 crore for environmental restoration and preventive measures, and ₹526.51 crore for economic loss to the fishing community.
In the aftermath of the incident, the state had issued advisories warning fishermen against venturing into the sea and provided emergency cash and food assistance to over 1.05 lakh families dependent on the fisheries sector.
The state has targeted MSC Akiteta II on the grounds that it is a “sister vessel” of MSC ELSA 3, both operating under the commercial, technical, and financial control of the Swiss-headquartered Mediterranean Shipping Company (MSC), despite formal registration under separate shell entities. The petition alleged that MSC commonly employs this structure — also observed in vessels such as MSC Manasa F, MSC Melissa, and MSC Flora — to avoid liability and frustrate claimants in maritime cases.
The government contended that such structuring amounts to a fraudulent corporate device, and invoked Section 5 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, to seek the arrest of the MSC Akiteta II even if MSC is treated as a demise charterer.
The petition also sought interest at 6 percent per annum from the date of the suit until judgment, and 12 percent thereafter until full recovery of the amount.