Kochi: Mediterranean Shipping Company (MSC), the operator of the cargo vessel MSC Elsa 3, which sank off the coast of Kerala, has provided a bank guarantee of Rs 1,227.62 crore to the high court to secure the release of its sister vessel, MSC Akiteta II. The latter was arrested due to claims made by the state government regarding environmental and economic damages caused by the sinking incident. The bank guarantee was submitted to the registrar general of the high court in the second week of December 2025, leading to the release of MSC Akiteta II, which had been detained at the Vizhinjam international port since July 2027.
Initially, MSC sought the court’s permission to offer the bank guarantee instead of complying with a previous directive to deposit the amount directly as security. The government pleader contested this approach, emphasizing that the cash deposit could be placed in an interest-bearing account, thus safeguarding the state’s interests by earning interest on the deposit. However, the high court, in its ruling on November 11, recognized that the state could not unilaterally demand a deposit, as the court’s earlier order allowed the shipping company the option to provide either a direct deposit or security.
On December 4, the court permitted MSC to submit a bank guarantee from a different private bank than initially noted. Consequently, MSC complied by providing the Rs 1,227.62 crore guarantee for the release of its fishing vessel.
The MSC Elsa 3, registered under the Liberian flag, capsized approximately 13 nautical miles from the Thottappally spillway in Alappuzha on May 25, 2025, while traveling from Vizhinjam to Kochi. Following this incident, the state launched an admiralty suit claiming damages of Rs 9,531 crore and requested the arrest of the MSC Akiteta II until the claim could be secured. Ultimately, the court mandated the arrest of the vessel in July 2026 and subsequently lowered the required security amount to Rs 1,227.62 crore.
This development represents a significant move for MSC, as securing the release of the vessel will allow the company to resume its shipping operations, potentially stabilizing its activities in the region amidst ongoing legal proceedings. The situation underscores the challenges faced by shipping companies in ensuring environmental safety while addressing regulatory compliance and financial responsibilities.