Kerala govt sues shipping company of $1.1 billion for fuel leak in Arabian Sea

Updated: Jul 8th, 2025

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CM Pinarayi Vijayan-led Kerala government have sued the Mediterranean Shipping Company (MSC) for $1.1 billion (~₹9,400 crore) compensation for fuel leak off the state’s shores in Arabian Sea in May, as per reports.

Kerala government in June had informed the Kerala High Court that it intends to file an admiralty suit against MSC, the owner of the vessel MSC Elsa-3 that sank off the state's coast recently. 

The state government submitted an affidavit detailing this before the High Court when it was hearing a public interest petition (PIL) filed by Congress leader and former Thrissur Lok Sabha member TN Prathapan.

In his plea, Prathapan wanted the court's intervention to ensure proper compensation, environmental clean-up, and due legal action following the sinking of the Liberia-flagged cargo ship on May 24, around 25 km southwest of the coastal district of Alappuzha.

“The state has stated that it has decided to file an admiralty suit against the respondent company, including the arrested sister vessel. It is also stated that the state is at present awaiting response on claim settlement undertaken by the Director General of Shipping,” the court recorded in its order.

Besides, the Kerala government also submitted that its Disaster Management Department has formed a committee for negotiating the compensation for pollution damage caused by the sinking of MSC Elsa-3.

The committee would also be negotiating the cost of restoring the coastline, marine environment, and losses caused to fishermen and recreational areas along Kerala’s coast.

MSC Elsa-3, which was en route from Vizhinjam to Kochi, was reportedly carrying diesel, bunker oil, calcium carbide, and plastic nurdles when it capsized in Indian territorial waters.

The spill triggered widespread concern over marine pollution and the livelihoods of coastal fishing communities.

(with inputs from syndicated feed)

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