Why Kerala has claimed $9,531 crore in compensation from MSC

A protracted legal battle between Kerala and Mediterranean Shipping Company (MSC) over the sinking of MV MSC Elsa 3 off Kerala coast is on the cards.

- MANOJ VISWANATHAN @ Kochi

Kerala filed an admiralty suit in Kerala High Court demanding a compensation of ₹9,531 crore while the MSC has argued that the state has no legal claim as the ship sank outside the territorial waters. MSC Elsa 3, a container vessel sank into the depths of the Arabian Sea around 14.6 nautical miles off Thottappilly harbour on May 25, 2025.

Fishermen approached the court seeking compensation alleging the floating containers are damaging their fishing gear. The HC has ordered detention of five cargo ships MSC Polo, MSC Manasa F, MSC Akiteta II, MSC Palermo and MSC Makoto for payment of compensation. While the ship owners produced bonds and ensured release of three vessels, MSC Akiteta II continues to be anchored at Vizhinjam as the company has expressed inability to pay the USD $1 billion compensation.

According to the Kerala government, the maritime claim arises from environmental pollution and damage to the coastline, economic loss caused to the fishing community and expenses incurred by the state in mitigating the consequences of the incident.