MSC pushes back against Kerala’s ₹9,531 crore claim linked to ELSA 3 disaster

Mediterranean Shipping Company (MSC) has told the High Court that the Kerala government lacks legal authority to pursue maritime claims over the ELSA 3 cargo vessel capsizing, as the incident occurred roughly 14.5 nautical miles off the coast—outside India’s territorial waters and beyond the state’s maritime jurisdiction. The statement was made in a counter-affidavit responding to an admiralty suit filed by the state, which is seeking ₹9,531 crore in damages for alleged environmental and economic losses stemming from the May 25 shipwreck.

Mediterranean Shipping Company (MSC) has asserted before the High Court that Kerala’s ₹9,531 crore compensation claim over the ELSA 3 shipwreck is speculative, lacks factual grounding, and contradicts earlier affidavits submitted by both the central and state governments. MSC argued that the protection of the marine environment in offshore zones—such as the site of the incident—falls exclusively under the jurisdiction of the central government.

The company maintained that the capsizing caused no substantial environmental harm. It described the observed oil sheen as minimal, likely consisting of diesel or mechanical oil, and cited findings from the state pollution control board indicating no significant change in seawater quality. MSC also noted that the central government did not impose a fishing ban following the incident, challenging Kerala’s claims of fisheries-related economic losses.

Mediterranean Shipping Company (MSC) has further argued that the fishing ban imposed by the Kerala government following the ELSA 3 shipwreck was arbitrary and overlapped with the seasonal monsoon ban already in effect.

 Addressing concerns over hazardous cargo, MSC clarified that only 13 containers aboard the vessel contained dangerous goods, all of which are believed to have sunk to a depth of 54 metres without any evidence of leakage or environmental harm.

In its affidavit, MSC also contested the High Court’s arrest of the vessel MSC MV Akiteta II, asserting that it is neither owned by MSC nor connected to the ELSA 3 incident. The company stated that Akiteta II is owned by Nairne Oceanway Ltd, while ELSA 3 is registered to ELSA 3 Maritime Inc.

MSC emphasized that it is not the registered owner of either vessel and should bear no liability, which it argued must rest solely with the respective registered owners.