Kerala HC modifies its order of conditional arrest of cargo ship; reduces security amount

Kochi, Sep 25 (PTI) The Kerala High Court on Thursday reduced the security amount to be paid by the owners of MSC ELSA III, which sank off the Kerala coast and caused severe pollution, for the release of its sister vessel MSC AKITETA II, to Rs 1,227.62 crore.

The High Court on July 7 had ordered the conditional arrest of MSC AKITETA till its owner -- Mediterranean Shipping Company (MSC) -- deposits Rs 9,531 crore as security.

Justice M A Abdul Hakhim on Thursday reduced the amount to Rs 1,227.62 crore.

The High Court said that the state government can later seek an increase in the security amount "on obtaining further materials" to support such a hike.

It also said that the state government "has every right to seek the arrest of any other sister vessel of the sunken vessel in this suit itself to demand additional security on furnishing supporting materials for the increase".

The order came on a plea by the Kerala government claiming damages of Rs 9,531 crore in connection with the sinking of MSC ELSA III and the resultant environmental pollution.

The state government's claim was under three heads -- Rs 8,626.12 crore towards compensation for damage caused to the environment, coastline or related interests of the state, Rs 378.48 crore as cost of the steps taken to prevent, minimise or remove such damage and Rs 526.51 crore towards economic loss caused to fishermen pursuant to the sinking of the vessel.

The MSC ELSA III had capsized and sunk off the Kerala coast on May 25, allegedly releasing oil and cargo that harmed the marine environment, damaged the coastline and affected the livelihood of thousands of fishermen.

Kerala's Environment Department, which brought the case, had said that the sunken vessel had 643 cargo containers and that the damage caused was enormous. PTI HMP HMP ADB