Elsa 3 Shipwreck: Company Denies Kerala's Rs 9,531 Crore Compensation Claim Over Vessel Capsize

Last Updated:August 07, 2025, 10:48 IST

The company claimed that the vessel had sunk approximately 14.5 nautical miles off the coast — a location outside the jurisdiction of the Kerala government.

One of containers from the ship MSC ELSA 3 that sank at the Kochi outer harbour, drifted ashore in Anjuthemgu, Thiruvananthapuram, Kerala, Tuesday, May 27, 2025. (Image: PTI)

The owners of the ill-fated cargo vessel MSC Elsa 3 have strongly contested the Kerala government’s Rs 9,531 crore compensation claim, arguing that the state has no legal standing in the matter and that no environmental or economic damage has been proven.

In a detailed counter affidavit submitted to the Kerala High Court, the company claimed that the vessel had sunk approximately 14.5 nautical miles off the coast — a location outside both India’s territorial waters and the jurisdiction of the Kerala government. Therefore, the state government lacked the locus standi to file the claim, they argued.

The vessel sank earlier this year, leading to widespread concerns about marine pollution, damaged fisheries, and the safety of coastal communities. In response, the Kerala government filed an Admiralty Suit and secured a High Court order on July 7 to arrest MSC AKITETA II, another vessel allegedly linked to the same company, to ensure liability for damages.

However, the company has refuted all allegations of marine pollution or damage to fisheries. It stated that only 13 containers on board Elsa 3 contained dangerous goods, and none of them had fallen into the sea. The affidavit emphasised that there was no release of hazardous chemicals and denied any discharge of pollutants, except for plastic nurdles that had washed ashore. According to the company, these nurdles are currently being collected by the Marine Emergency and Rescue Centre (MERC), a dedicated response agency. The clean-up operation is ongoing.

The affidavit also cited analysis reports by the Kerala State Pollution Control Board (KSPCB), which, it said, showed no significant changes in either sea water or air quality in the aftermath of the incident. These findings, the company argued, undermine the Kerala government’s claim of environmental damage.

Addressing the compensation claim related to the loss of fishermen’s livelihoods, the company asserted that such claims were speculative and legally untenable. It stated that the Central Government holds exclusive jurisdiction over fisheries and has not imposed any fishing ban. If the Kerala government had independently issued a fishing ban — which the company denied — then it alone was responsible for the consequences of that action.

“The claim for economic loss due to a so-called market scare regarding fish quality is entirely arbitrary," the affidavit stated. “There is no evidence of a drop in fish prices or demand, and thus no demonstrable loss."

The company further described Kerala’s Rs 9,531 crore claim as “grossly exaggerated, fanciful, and unsubstantiated," calling for the amount to be substantially moderated or dismissed.

Seeking to lift the arrest order on MSC AKITETA II, the company maintained that no basis existed for such a severe action, especially in the absence of proven liability. The matter continues to be heard in the Kerala High Court, as questions of jurisdiction, environmental accountability, and maritime law take centre stage.

Neethu Reghukumar

Neethu Reghukumar, Principal Correspondent at CNN-News18, has 12 years of experience in both print and broadcast journalism. She covers politics, crime, health in Kerala, and has extensively reported on floods ...Read More

Neethu Reghukumar, Principal Correspondent at CNN-News18, has 12 years of experience in both print and broadcast journalism. She covers politics, crime, health in Kerala, and has extensively reported on floods ...

Read More

Location :

Thiruvananthapuram, India, India

First Published:

August 07, 2025, 10:47 IST

News india Elsa 3 Shipwreck: Company Denies Kerala's Rs 9,531 Crore Compensation Claim Over Vessel Capsize

Read More